Britain will be the strongest major economy in Europe for the next 2 years, says IMF

[BrilloPad]

UK growth set to overtake the eurozone, forecasts IMF | This is Money


Looks like the Anglo-Saxon QE approach was best, since the US is showing signs of strong improvement, too.
Meanwhile those stupid continentals force austerity on the Southern Europeans, killing the ailing patient, throwing out the baby with the bathwater, call it what you will. Why?
First you have to make sure the patient lives, then apply the medicine. It's all about timing.

I am sure we will do better than Europe - but once Greece defaults later this year I think it will have a bad affect globally. Then there is Portugal etc.

If we do get 2% growth next year I will be delighted - tjough it is hardly motoring.

And I still think the UK could become alot more business friendly.

<eagerly awaits cretin comment from sasguru>

[DimPrawn]

Boomed!

Are these prjections based on house prices going up and we're all rich again?

House prices


Quick AtW, get on the housing ladder NOW!

[sasguru]

. Manger material!

Truly your intellect is a straw house

PS I was merely pointing out to the congregation how sad you are, lying about petrol prices, to prove to us you are in Scootopia.
Your life must be sad indeed if you stoop so low

[sasguru]

to the longer term problems being created by QE.

Are there any? Japan has been doing it for 20 years and is still deflationary.

[doodab]

Are there any? Japan has been doing it for 20 years and is still deflationary.

Well it artificially lowers the government's interest rate which allows them continue in their bad habits. A bit like the way nurofen allow alcoholics to keep drinking day after day after day until they finally keel over.

[BrilloPad]

Are there any? Japan has been doing it for 20 years and is still deflationary.

I think most of us here think deflation is a bad thing - but does that mean inflation is a good thing? Why does the BoE have a 2% inflation target?

If you can reply without using the word "cretin" I will give you +ve rep.....

[DimPrawn]

Well it artificially lowers the government's interest rate which allows them continue in their bad habits. A bit like the way nurofen allow alcoholics to keep drinking day after day after day until they finally keel over.

Thanks for the top tip!

[OwlHoot]

I think most of us here think deflation is a bad thing - but does that mean inflation is a good thing? Why does the BoE have a 2% inflation target?

If you can reply without using the word "cretin" I will give you +ve rep.....

Deflation is a vicious circle - As soon as it starts, prices start falling, or a given amount buys more, so everyone defers discretionary purchases in the expectation that prices will continue falling. Then, due to the resulting downturn, this becomes true, and so on.


Think of it like orbiting a black hole - If you're skimming the event horizon then one hiccup and you'll be gone. There are obviously no stable orbits inside - every world line spirals down to the centre (in principle) or (in practice) to the inner horizon where you'll be destroyed by mass inflation instabilities.

So to be on the safe side, you should allow some margin for error, such as 2% in the case of inflation.

Edit: (off topic, but I hate to see inaccuracies) There are no stable black hole orbits within the photon sphere, which is 1.5 * the radius of the event horizon (as measured by a distant observer). At that distance a circular orbit must be at the speed of light, and any closer and the directions of maximum escape velocity (light speed) tip more and more towards the outward direction, if that makes sense.

[BrilloPad]

Deflation is a vicious circle - As soon as it starts, prices start falling, or a given amount buys more, so everyone defers discretionary purchases in the expectation that prices will continue falling. Then, due to the resulting downturn, this becomes true, and so on.


Think of it like orbiting a black hole - If you're skimming the event horizon then one hiccup and you'll be gone. There are obviously no stable orbits inside - every world line spirals down to the centre (in principle) or (in practice) to the inner horizon where you'll be destroyed by mass inflation instabilities.

So to be on the safe side, you should allow some margin for error, such as 2% in the case of inflation.

I agree strongly - but is inflation such a bad thing?

[sasguru]

Deflation is a vicious circle - As soon as it starts, prices start falling, or a given amount buys more, so everyone defers discretionary purchases in the expectation that prices will continue falling. Then, due to the resulting downturn, this becomes true, and so on.


Think of it like orbiting a black hole - If you're skimming the event horizon then one hiccup and you'll be gone. There are obviously no stable orbits inside - every world line spirals down to the centre (in principle) or (in practice) to the inner horizon where you'll be destroyed by mass inflation instabilities.

So to be on the safe side, you should allow some margin for error, such as 2% in the case of inflation.

Aye couldn't have put it better myself.
We've had inflation in the past and while not pretty, it's the lesser of 2 evils.
Plus in the situation we're in, inflation eats away at real debts.