Uk interest rate cut
Dec 7th 2007, 10:21 pm
#31
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Re: Uk interest rate cut
The US/UK have far greater exposure to the problems in the global credit markets - I'd say the central banks are trying to take some pre-emptive steps to address this. Canada have also dropped their interest rates as they are likely to catch cold from the US.
Aus now has much more of its interests linked to Asia and so is less affected. Also I'd say the inflation 'problem' - either on official or 'real' stats - is worse in Australia hence the bank keeps on tightening. The economy is still sweet too of course with little sign of any dramatic changes. Whereas in the UK there are the first signs of also catching cold from the US / housing market downturn so the bank is acting.
Aus now has much more of its interests linked to Asia and so is less affected. Also I'd say the inflation 'problem' - either on official or 'real' stats - is worse in Australia hence the bank keeps on tightening. The economy is still sweet too of course with little sign of any dramatic changes. Whereas in the UK there are the first signs of also catching cold from the US / housing market downturn so the bank is acting.
Debbie
Dec 7th 2007, 10:28 pm
#32
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Location: In one big housing bubble!
Posts: 177
Re: Uk interest rate cut
The US/UK have far greater exposure to the problems in the global credit markets - I'd say the central banks are trying to take some pre-emptive steps to address this. Canada have also dropped their interest rates as they are likely to catch cold from the US.
Aus now has much more of its interests linked to Asia and so is less affected. Also I'd say the inflation 'problem' - either on official or 'real' stats - is worse in Australia hence the bank keeps on tightening. The economy is still sweet too of course with little sign of any dramatic changes. Whereas in the UK there are the first signs of also catching cold from the US / housing market downturn so the bank is acting.
Aus now has much more of its interests linked to Asia and so is less affected. Also I'd say the inflation 'problem' - either on official or 'real' stats - is worse in Australia hence the bank keeps on tightening. The economy is still sweet too of course with little sign of any dramatic changes. Whereas in the UK there are the first signs of also catching cold from the US / housing market downturn so the bank is acting.
Here in the UK Merv was under immence pressure to drop, i mean presure from all quarters! I know he is only one vote, but i get the feeling, his job is on the line?
Stalin, sorry Mc Bean, really is pulling the string's now, his leadership is coming under a massive amount of pressure, even his own party, the knives are out.
The fact that he keeps repeating, 10 years of growth, low interest rates, low unemployment etc etc, it is starting to look a little weak, he has been found out, so from the IRON Stalin to the very poor b*llshitting cheating whatever who pulled all the strings but never took any heat in the last ten years?
The chickens are coming home to roost? This guy has a major in History, and a PhD in champagne socialism, yet he ran or said he ran the economy for ten years?
I rest my case, you make your own mind up, the public are now the jury?
Dec 7th 2007, 10:30 pm
#33
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Re: Uk interest rate cut
I rest my case, you make your own mind up, the public are now the jury?
Dec 7th 2007, 10:36 pm
#34
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Re: Uk interest rate cut
I don't buy the 'they were under pressure to drop' theory.
There have been so many times when various bodies - the CBI, manufacturing unions etc - have called on the BoE to drop rates and they have held on.
This is the first time they have dropped in years and it's in response to the negative pressures on the economy finally outweighing the upwards pressures.
I'm not sure what you mean about the chickens coming home to roost - the UK has enjoyed a very longth growth period (pre-Tony and post-Tony), economies move in cycles and I wouldn't expect it to continue forever. Feel free to rubbish the statistics but they show the UK to have one of the most stable, consistently growing economies over the past 15 years. My $0.02.
There have been so many times when various bodies - the CBI, manufacturing unions etc - have called on the BoE to drop rates and they have held on.
This is the first time they have dropped in years and it's in response to the negative pressures on the economy finally outweighing the upwards pressures.
I'm not sure what you mean about the chickens coming home to roost - the UK has enjoyed a very longth growth period (pre-Tony and post-Tony), economies move in cycles and I wouldn't expect it to continue forever. Feel free to rubbish the statistics but they show the UK to have one of the most stable, consistently growing economies over the past 15 years. My $0.02.
Dec 7th 2007, 10:41 pm
#35
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Re: Uk interest rate cut
I'm not sure what you mean about the chickens coming home to roost - the UK has enjoyed a very longth growth period (pre-Tony and post-Tony), economies move in cycles and I wouldn't expect it to continue forever.
Dec 7th 2007, 10:44 pm
#36
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Re: Uk interest rate cut
I'd agree with you there....Gordon is very sneaky with that one. That doesn't change the year on year growth figures though....just allows Gordon more & more slack to try and justify his borrowing. So yes, maybe the growth has all been built on borrowed money and the chooks will come home when the debts are called in.
Dec 7th 2007, 10:45 pm
#37
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Location: In one big housing bubble!
Posts: 177
Re: Uk interest rate cut
I don't buy the 'they were under pressure to drop' theory.
There have been so many times when various bodies - the CBI, manufacturing unions etc - have called on the BoE to drop rates and they have held on.
This is the first time they have dropped in years and it's in response to the negative pressures on the economy finally outweighing the upwards pressures.
I'm not sure what you mean about the chickens coming home to roost - the UK has enjoyed a very longth growth period (pre-Tony and post-Tony), economies move in cycles and I wouldn't expect it to continue forever. Feel free to rubbish the statistics but they show the UK to have one of the most stable, consistently growing economies over the past 15 years. My $0.02.
There have been so many times when various bodies - the CBI, manufacturing unions etc - have called on the BoE to drop rates and they have held on.
This is the first time they have dropped in years and it's in response to the negative pressures on the economy finally outweighing the upwards pressures.
I'm not sure what you mean about the chickens coming home to roost - the UK has enjoyed a very longth growth period (pre-Tony and post-Tony), economies move in cycles and I wouldn't expect it to continue forever. Feel free to rubbish the statistics but they show the UK to have one of the most stable, consistently growing economies over the past 15 years. My $0.02.
Strip away debt, has there been any real growth?
We have, well not we, Merv has been up all night, working on those printing presses, 14% per annum, stats regarding inflation 2%, disconnect?
At the end of the day, money out of thin air is inflationary, the BOE are inflationists, money supply at 14%, WHERE HAS IT GONE?
Assets grow at 14% per annum, growth?
I just do not buy it, Brown is a clown, sorry my opinion, its payback time now, you just cannot binge on cheap credit forever, why because it has to be paid back. Growth and money supply over the past ten years is just too closely linked!
Dec 7th 2007, 10:47 pm
#38
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Re: Uk interest rate cut
Went to a conference last year where a chap from Treasury was speaking, and when he mentioned the date of the start of the current economic cycle everyone (all 500) switched off, you could virtually hear the collective yawn. That might have been the hangovers though 
it was day 2
it was day 2
Dec 7th 2007, 10:50 pm
#39
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Joined: Feb 2007
Location: In one big housing bubble!
Posts: 177
Re: Uk interest rate cut
Anyway,
bcworld and NikiL, Goodnight!
Good debate, beats talking about the weather?
bcworld and NikiL, Goodnight!
Good debate, beats talking about the weather?
Dec 7th 2007, 10:52 pm
#40
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Re: Uk interest rate cut
...agree totally, and its a global phenomenon at all levels, governments right down to individual consumers (i.e. house prices vs salaries as you point out) - not Gordon specific. He could've chosen not to jump on the cheap credit band wagon but then I suspect he'd have a whole lot of other dubious economic stats to explain away.
OK you got it right
Dec 8th 2007, 12:55 am
#43
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Joined: Apr 2005
Location: Chippendale, Sydney
Posts: 8,735
Re: Uk interest rate cut
The US/UK have far greater exposure to the problems in the global credit markets - I'd say the central banks are trying to take some pre-emptive steps to address this. Canada have also dropped their interest rates as they are likely to catch cold from the US.
Aus now has much more of its interests linked to Asia and so is less affected. Also I'd say the inflation 'problem' - either on official or 'real' stats - is worse in Australia hence the bank keeps on tightening. The economy is still sweet too of course with little sign of any dramatic changes. Whereas in the UK there are the first signs of also catching cold from the US / housing market downturn so the bank is acting.
Aus now has much more of its interests linked to Asia and so is less affected. Also I'd say the inflation 'problem' - either on official or 'real' stats - is worse in Australia hence the bank keeps on tightening. The economy is still sweet too of course with little sign of any dramatic changes. Whereas in the UK there are the first signs of also catching cold from the US / housing market downturn so the bank is acting.
Hmm. I'm less convinced of this now. An article on ABC on Wednesday night interviewed a bigwig from the RBA, and they have revised their prediction that the global credit crunch will have a limited effect on Australia to it having some effect.
I'm just looking to see if I can find it online anywhere.
S
Dec 8th 2007, 1:07 am
#44
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Joined: Jun 2007
Location: Melbourne
Posts: 10,994
Re: Uk interest rate cut
Hmm. I'm less convinced of this now. An article on ABC on Wednesday night interviewed a bigwig from the RBA, and they have revised their prediction that the global credit crunch will have a limited effect on Australia to it having some effect.
I'm just looking to see if I can find it online anywhere.
S
I'm just looking to see if I can find it online anywhere.
S
Dec 8th 2007, 12:50 pm
#45
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Location: In one big housing bubble!
Posts: 177
Re: Uk interest rate cut
I don't think this image is appropriate.
One of these men is a thoroughly corrupt and evil excuse for a human being who has bankrupted his country, allowed inflation to soar, manipulated the people through relentless use of propaganda and turned his nation into a police state.
And the other one is the President of Zimbabwe.
Robert Mugabe for Chancellor of the UK!
Maybe that's why Stalin isn't going to the summit in Portugal?
Mugabe: Ah Mr Stalin, I see you have finally recognised the economic wisdom of the Great Nation of Zimbabwe
Stalin: Eh, can you stand on my other side please, I can't see you properly, and what are you taking about
[Mugabe fails to move as requested, but instead starts to make funny faces and sticks his tongue out]
Mugabe: Well it is clear that you have decided to use the power of inflation to wash all you debt problems away, it has worked very well for us. We even managed to bankrupt our opposition! Never again will they be able to challenge us in elections, I am President for life!
[Stalin: scratches head and then smiles slightly]
Stalin: what are you doing after the final session today? Can I invite you to dinner for a chat about economic policy? We do have so much in common i feel?
Stalin:By the way, do you swing both ways?
Mugabe: I would be delighted to join you for dinner, but no, i am firmly commited to my party and our political genda!
Stalin: scratches his n*ts and walks off, unhappy with his last comment!
Last edited by Nursebank; Dec 8th 2007 at 12:54 pm.
