Reply to: U.K. Executive Confidence Rises as BOE Rate Threshold Looms

[suityou01]

Call me fick, but I thought that QE effectively gave negative interest rates without actually having negative interest rates. Tapering QE would be like rolling the IR back to 0.5, then a hike from there would start sucking the loose money back out.

Just because you're printing less doesn't mean money is getting sucked out.

[Peoplesoft bloke]

Last chance to fix your mortgage rate. Selling like 'ot cakes Guv'nor!

Saved a fortune by not fixing mine - not going to fix now at higher than I am paying.

[CheeseSlice]

In the US they're tapering which I believe is to gradually reduce the rate at which the fed buys gov't debt until it is nil. I don't know if they or the UK are also going to suck all of that loose money back out of the economy again, which I think would be unwinding (i.e. destroying money that shouldn't exist).

[BrilloPad]

Increasing rates IS the unwinding of QE!!

Okay. Let me be more specific. Raising base rates.

[suityou01]

Increasing rates IS the unwinding of QE!!

SAS, slap him please.

[AtW]

Don't they have to unwind QE before a rate rise?

Increasing rates IS the unwinding of QE!!

[suityou01]

Don't they have to unwind QE before a rate rise?

Or is QE just an excuse to print money where only the government and banks can spend it?

I thought that. I guess they don't, but one would cancel out the other.

[BrilloPad]

Don't they have to unwind QE before a rate rise?

Or is QE just an excuse to print money where only the government and banks can spend it?

[SpontaneousOrder]

...and socialist policies - those banks were forced to give mortgages to sub-prime debtors. Maybe the author forgot about that bit.

[Zero Liability]

...and cheap credit, courtesy of the Fed, the primary co-ordinator of the fractional reserve banking system. They're right that higher interest rates will entail greater financial hardship, but yeah, Britain is probably not on the precipice of collapse. There is frequent talk about China being in a real estate bubble.

[CheeseSlice]

Interesting reading this 12 months old critique of the Moneyweek "end of Britain" horror story.

MoneyWeek and their "End of Britain" fearmongering campaign

Written by a socialist, with the Moneyweek article obviously being a pro-capitalist publication.

He asserts that the MW article distorts the economic facts and figures to scare your money out of the UK and into the relative safety of offshore high-yield financial products whilst the impending UK collapse takes its course.

As I mentioned before, the whole article is rammed full of enticements to subscribe to their magazine, so when it comes to the conclusion, the advice that the reader has to trawl through over 9,000 words of text to find, it is absolutely no surprise to find that all three of their big tips for mitigating the effects of the economic crisis they have been doom-mongering about happen to involve accepting financial advice from them.

The first two are almost the same thing, "we’ll help you make a handful of key investments..." and "we’ve uncovered several key income-producing investments you can make today...". The second one is altogether more sinister sounding than the first. It sounds like nothing more than an enticement to invest in complex high-yield something-for-nothing type financial products.

If the reader knows anything about the real cause of the neoliberal economic meltdown (2007-08) then this will sound awfully familiar to them. It was exactly this kind of opaque high-yield financial product that resulted in the US financial sector meltdown. Opaque, high yield financial products called Collateralised Debt Obligations, which were hawked to customers as AAA rated, dead-cert, get-rich-quick investments were the main cause of the neoliberal economic meltdown.

I saw earlier today that somebody on housepricecrash had followed the MW advice and had put their money into an Indian 'account' paying a tasty 8% return.

As the Moneyweek article and this critique were both written around a year ago, and I find something quite strange about the recent language used by a central bank spokesman in the press prior to Christmas (I can no longer find the quote). "The financial crisis is moving from west to east".

Maybe the UK will turn out OK but maybe someones going to 'do a Lehman' over in Asia and sweep all this scared money away?

Sounds like some kind of conspiracy, but lets see what happens

[RedSauce]

Hang on. Didn't Moneyweek say if rates rise it would be the "End of Britain"?

I am looking forward to it.

[scooterscot]

Hang on. Didn't Moneyweek say if rates rise it would be the "End of Britain"?

Yes. And at the bottom of the article was a 'want to read more?' subscribe, i kid you not.

[CheeseSlice]

Last chance to fix your mortgage rate. Selling like 'ot cakes Guv'nor!

Hang on. Didn't Moneyweek say if rates rise it would be the "End of Britain"?

[Flashman]

A raise in the BOE base rate has always been inevitable but we seem to be moving closer to the first increase:



U.K. Executive Confidence Rises as BOE Rate Threshold Looms - Bloomberg

Last chance to fix your mortgage rate. Selling like 'ot cakes Guv'nor!