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Savers bend over and take it for Britain

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http://www.bbc.co.uk/news/business-21589128

 

"Minutes of the last meeting of the Bank's policy setting committee showed that the governor, Sir Mervyn King, was outvoted in calling to expand QE from its current level of £375bn."

 

"Chairman of the Treasury Select Committee, Andrew Tyrie said it had long been concerned about the shortage of lending to the SME sector that was inhibiting economic growth in the UK.

"The MPC is right to be looking at additional tools, or changes to existing tools, that could help," he said.

"Some of the proposals we heard today, such as moving to negative interest rates, are radical; others are not. They all warrant careful consideration," he said in a statement after the hearing."

 

 

"Hugh Pym Chief economics correspondent, BBC News

Negative interest rates? Sounds a bizarre notion and the Bank of England deputy governor Paul Tucker acknowledged it would be an "extraordinary" move.

But it is clearly in the Bank's thinking even if not adopted at this stage. The Danish central bank has already gone down this route. The theory is that commercial banks are depositing too much cash in the vaults of the Bank of England.

To encourage them to withdraw the money and lend it elsewhere they would not be paid interest and instead would be charged a fee (negative interest) for holding cash at the Bank of England.

There would not be negative interest on High Street deposits but banks would almost certainly react by cutting savings rates and raising current account charges. The big risk is that any gain in lending by banks would be matched by losses for savers and damage to banks' profits.

 

 

It must be getting desperate at the central bank !!!!

 

Regards

 

ML

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you have an odd definition of 'savers'. I think you are wrong there your view of savers is valid but odd!

 

savings are what you get when production exceeds consumption and damages. Agreed the mass population of Britain saves theirs in Sterling!

 

being owed a nominal amount of undefined fiat currency by an insolvent fictive legal entity (an incorporated bank) does not evidence any such goings on

 

 

The BOE issues Fiat in terms of Sterling to say undefined in relation to this quoted article would be wrong again!

 

Your opinion is noted but relatively abstract and of little value or relevance to the quoted article or the mass of savers it could effect!

 

Regards

 

ML

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The BOE issues Fiat in terms of Sterling to say undefined would be wrong!

 

so what is a pound?

 

Your opinion is noted...

 

which part of post 2 is opinion?

 

...but relatively abstract and of little value or relevance to the quoted article or the mass of savers it could effect!

 

again, they are not savers.

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so what is a pound?

 

A coin which enables you to procure items!

 

 

 

which part of post 2 is opinion?

 

you have an odd definition of 'savers'

 

 

 

again, they are not savers.

 

Oxford dictionary

 

Definition of saver

noun

 

1a person who regularly saves money through a bank or recognized scheme: a cut in base rate usually means less income for savers

 

 

Which relates to the original post title and the quotes

 

 

 

Regards

 

ML

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A coin which enables you to procure items!

 

the same could be said about a 50p coin. or a quarter. and what about a £5 note?

 

clearly what you have written is not a definition of pound

 

are these pounds?:

 

 

you have an odd definition of 'savers'

 

:lol: so it's not odd to call people with no saving 'savers' then?

 

all these abstract bank account 'balances' could be wiped out tomorrow, yet grain stocks, oil reserves etc would still be there.

 

and yet you accuse me of being abstract! :blink:

 

Oxford dictionary

 

if you're into dictionaries, you can check the difference between effect and affect.

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the same could be said about a 50p coin. or a quarter. and what about a £5 note?

 

clearly what you have written is not a definition of pound

 

are these pounds?:

 

 

 

 

:lol: so it's not odd to call people with no saving 'savers' then?

 

all these abstract bank account 'balances' could be wiped out tomorrow, yet grain stocks, oil reserves etc would still be there.

 

and yet you accuse me of being abstract! :blink:

 

 

 

if you're into dictionaries, you can check the difference between effect and affect.

 

 

Please explain it for me ? Is your medication having any affect or no effect at all ?

 

Regards

 

ML

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It is funny to see the Talk of MAYBE having negative rates, when Real Rates have been negative for some time.

 

The UK must be getting desperate - obviously such talk serves to push the Pound lower

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It is funny to see the Talk of MAYBE having negative rates, when Real Rates have been negative for some time.

 

The UK must be getting desperate - obviously such talk serves to push the Pound lower

 

 

I agree they have their own figures of what is going on in the economy before the rest!

 

Traditional savers have been hammered to rescue debtors!

 

It is a stage further down the line of the death of Fiat money, before a we eventually get a commodity backed currency! (imvho)

 

The central banks mantra of to easy credit debt caused this mess in 2007 is to be cured by more debt less savings by this move ?

 

Rather than " when in a hole stop digging"

 

Where would we be now 5 years on if the banks had been allowed to go bang property prices had crashed the pound had tanked

 

Labour had been lashed and Gordon no boom and bust had been strung up then 375bn of hole/debt digging had been averted ?

 

Probably starting on the road to recovery.

 

 

Regards

 

ML

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I agree they have their own figures of what is going on in the economy before the rest!

Traditional savers have been hammered to rescue debtors!

 

That's the main function of QE.

Making savings such a bad deal that savers are coerced towards spending their cash.

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Saving in the UK has been so easy. Just choose your bank carefully. Bullionpost, Chards, CID, Bairds etc...all great banks! You deposit paper and you get real money. Bank charges amount to p&p and the premium.

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With Returns on Savings so low,

People have rushed into investments of all types, and especially property.

 

So ASSET PRICES are now at very high levels - meaning Big Risk for those who buy them now.

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With Returns on Savings so low,

People have rushed into investments of all types, and especially property.

 

So ASSET PRICES are now at very high levels - meaning Big Risk for those who buy them now.

 

I agree with this DB when applied to London property (World capital ?)

 

However two real life examples close to my own home.

 

Example 1 Property 2007 detached house 1.2 million now 960, 000 rent return would be 3% gross on investment!

 

Example 2 how would you view someone buying tomorrow say a commercial rental property office/ residential mix grossing 10/12 % per annum on return on investment double the return of the bad old 5% return days of 2007?

 

First investment Bad second one good ?

 

Regards

 

ML

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Saving in the UK has been so easy. Just choose your bank carefully. Bullionpost, Chards, CID, Bairds etc...all great banks! You deposit paper and you get real money. Bank charges amount to p&p and the premium.

 

 

Spot on !

 

Regards

 

ML

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