Bank of England: We'll Cut To Zero

Discussion in 'Economics' started by MattF, Nov 13, 2008.

  1. MattF


  2. Wasn't King yapping about inflation just 3 months ago? :cool:

    Shouldn't the BOE hike instead? GBP is imploding. They should hike to 9% asap to support their currency and to help 'clear out the system'.
  3. Wouldn't that destroy all those over-leveraged home buyers with the interest on their ridiculous home loans.

    They can't walk away as easily from a foreclosed mortgage like those in the US can...
  4. "The Bank of England yesterday warned there is a 20 per cent chance the UK could spiral into deflation in 2010."

    IMO there is a 100% chance that UK will deflate in '09, in fact they would be there now if it were not for the grand adventures of Santa Claus next month.

    Dear old Santa is rather holding up the works at the moment, thus offering false hope to many.

    Of course BOE could always force trading banks to reduce mortgage repayments until inflation hopefully kicks in.
    This is the current US model doing the rounds at the moment and it will be fun to see where this all winds up.

    The golden road to inflation lies through the gates of deflation as I see things in this moment.

    Whether we can all jam through the gate in order to reap so called the fruits of inflation or whether the gate is littered with the misery of the fallen remains to be seen.

    We certainly live in interesting times as the curse goes

  5. I wonder how the million or so British retirees are doing with houses bought in Spain, France, Italy and Cyprus on a EUR mortgage and their pensions coming in in GBP?

    GBP down 22% from 18 months ago vs. EUR.

    Should open up awesome buying opportunities for some real estate along the Mediterranean coast :cool:
  6. Daal


    King's ability to tell it how it is, is impressive