Soldato
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I think the BOE needs to win this fight against the government, as rates go up, taxes come down. Rates really need to go up, maybe a full 1% asap and then look again in the new year.
2022 mini-budget discussion
- Thread starter Harlequin
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I think the BOE needs to win this fight against the government, as rates go up, taxes come down. Rates really need to go up, maybe a full 1% asap and then look again in the new year.
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Way to go yet, I can remember my father getting a safe 15 percent, maybe more for a while.
I've copied (and removed the links from) the below, from the wikipedia article about the 1976 sterling crisis. The situation now is uncannily similar.
The 1976 sterling crisis was a currency crisis, in the United Kingdom in 1976. Inflation (at close to 25% in 1975, causing high bond yields and borrowing costs), a balance of payments deficit, a public spending deficit, and the 1973 Oil crisis were contributors.
The origins of the crisis are traced to the 1972 Conservative "spend for growth" budget that initiated the inflation cycle.
James Callaghan's Labour government had to borrow $3.9 billion from the International Monetary fund (IMF), with the intention of maintaining the value of sterling. At the time this was the largest loan ever to have been requested from the IMF.
The 1976 sterling crisis was a currency crisis, in the United Kingdom in 1976. Inflation (at close to 25% in 1975, causing high bond yields and borrowing costs), a balance of payments deficit, a public spending deficit, and the 1973 Oil crisis were contributors.
The origins of the crisis are traced to the 1972 Conservative "spend for growth" budget that initiated the inflation cycle.
James Callaghan's Labour government had to borrow $3.9 billion from the International Monetary fund (IMF), with the intention of maintaining the value of sterling. At the time this was the largest loan ever to have been requested from the IMF.
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That sounds like a narcissist who cannot conceive of the possibility they may be wrong but when they cannot counter the argument, they resort to irrelevant comments about Italy, Labour and any other excuse they can wield to distract from their incompetence.
So how about it.? Are you actually going to engage and challenge the points I made about this being THE TORY PARTY, or are you going to continue to deflect and ignore what is put to you?
You may think you're playing a blinder, but you're as transparent as a 3 year old with his hand still in the cookie jar.
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That's what you take away from your interaction with people even after being told we may have more important things to worry about, even after you were the one and only person to broach that subject because, i assume, nobody but you cared or even noticed.
This isn't the 80's where most people weren't swimming in debt, these comparably low figures are actually very high.
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Italy has always been more right than most European nations.
Soldato
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I'm sensing some froth here.
Anyone supporting the UKIP budget should:
1) Just admit you're a Kipper for gods sake
2) Admit you are either part of the mysterious cabal who have this as part of thier plan or admit you are just innumerate
I saw Kwarteng on Kuenssberg yesterday and when asked about Sterling he just said "I don't watch the markets". Very similar to Johnson and his "let the bodies pile high".
And no, Johnson would be worse because he'd have made some fantasy up and told us about it on Friday and then u-turned and made some other nonsense else up today. He would have had all weekend don't forget
Anyone supporting the UKIP budget should:
1) Just admit you're a Kipper for gods sake
2) Admit you are either part of the mysterious cabal who have this as part of thier plan or admit you are just innumerate
I saw Kwarteng on Kuenssberg yesterday and when asked about Sterling he just said "I don't watch the markets". Very similar to Johnson and his "let the bodies pile high".
And no, Johnson would be worse because he'd have made some fantasy up and told us about it on Friday and then u-turned and made some other nonsense else up today. He would have had all weekend don't forget
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I think the problem is the figures were all written in Blue Biro and they're all wearing their favorite pair of Tory-Blue tinted glasses, so they can't actually read the numbers.
The two times are not at all comparable.
I've not done the actual calculation but I would wager that in terms of mortgage affordability versus average income, those 15% interest rates are around the equivalent of 3-4% today.
Soldato
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They've just said that on sky news
I don't get that. Surely if you factor in the massive increase in house prices it can't be right?
Aldi boss: Shoppers are switching in their droves
The discounter gains 1.5 million new customers in 12 weeks, says UK chief executive Giles Hurley.
www.bbc.co.uk
Looks like Aldi is certainly benefiting from it all.
The massive increase in house prices versus average income is precisely why i'm guessing that rates getting to around 3-4% today (and they're going to go way above that IMO) would probably be similar in terms of affordability/unaffordability to the far higher 15% we've seen before.
Due to my "Help to Buy" loan, a house price crash would benefit us greatly, not that we're wishing that on the nation
Ah yes - thanks. I get it now, I was thinking about it the wrong way round. I guess the way to think about it is that 5% rates now are going to be a painful as 15% back in the 70s.
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I look at things such as the forum section "Images of things you have purchased" I call it "Consumerist Central" and think no wonder debt is rife. I think to customers over the years who said things to the effect that they thought I'd have a flash car myself. I have overheard the comments like, "He's a scruffy sod, why doesn't he buy some new clothes instead of wearing overalls all the time", whilst they themselves are scratching to pay their bill.
I think of the High Streets full of fast food places, catering for parents too idle and disorganised to buy and cook decent food for their family, and the tattoo parlours decorating the women to look like sailors, whilst the bints themselves are in the pubs, smoking and drinking whilst simultaneously moaning about having no money.
Much of the people's debt is totally self inflicted through greed, consumerism and a lack of self control. People are unwilling to save, unwilling to wait, unwilling to make do and mend, but only too willing to get deeply in debt. If they were in debt financing a decent education for their kids I could sympathise, but such is rarely the case.
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