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Interest rates up
- Thread starter JohnD
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Lat's try this...
……….……………………………………….
Hmmmm, can't get it to scale.
It has recently been abnormally low, to allow the banks to rebuild their profits at the expense of the ordinary citizen. https://www.bbc.co.uk/news/business-15198789
When interest rates are below inflation, savings are eroded. So is debt (especially Government debt). A Government with large borrowings can shrink them away by allowing inflation to creep up and erode the value of the debt. This is very common, and deliberate. It is a much simpler trick in the UK than in the Eurozone.
As an ordinary citizen, with no power, you will find that the banks charge you interest on your borrowings which is higher than inflation, to enrich themselves at your expense, and pay you interest on your savings at a rate which is lower than inflation, to enrich themselves at your expense. Polonius was right.
……….……………………………………….
Hmmmm, can't get it to scale.
It has recently been abnormally low, to allow the banks to rebuild their profits at the expense of the ordinary citizen. https://www.bbc.co.uk/news/business-15198789
When interest rates are below inflation, savings are eroded. So is debt (especially Government debt). A Government with large borrowings can shrink them away by allowing inflation to creep up and erode the value of the debt. This is very common, and deliberate. It is a much simpler trick in the UK than in the Eurozone.
As an ordinary citizen, with no power, you will find that the banks charge you interest on your borrowings which is higher than inflation, to enrich themselves at your expense, and pay you interest on your savings at a rate which is lower than inflation, to enrich themselves at your expense. Polonius was right.
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EddieM
Lat's try this...
……….……………………………………….
Hmmmm, can't get it to scale.
It has recently been abnormally low, to allow the banks to rebuild their profits at the expense of the ordinary citizen. https://www.bbc.co.uk/news/business-15198789
When interest rates are below inflation, savings are eroded. So is debt (especially Government debt). A Government with large borrowings can shrink them away by allowing inflation to creep up and erode the value of the debt. This is very common, and deliberate. It is a much simpler trick in the UK than in the Eurozone.
As an ordinary citizen, with no power, you will find that the banks charge you interest on your borrowings which is higher than inflation, to enrich themselves at your expense, and pay you interest on your savings at a rate which is lower than inflation, to enrich themselves at your expense. Polonius was right.
Yes... and ?? is there a pretext here?
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EddieM
And? what does that tell you? c'mon you're the one's pretending to be economist's???
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Like I said. The global crisis hit UK harder than Europe.
Is that because the UK is more reliant on global finance, or because the EU (the euro zone) is more resilient than the pound?
Or is one a correlation (cause and effect) of the other?
How many European banks went bust during the global financial crisis?
Your graph shows what the financial crisis in the UK did to the pound.
Prediction:
The Pound-to-Euro exchange rate to go back above 1.20 longer-term
- Any near-term bounce from Bank of England rate rise to be short-lived
- Bank of England to strike cautious tone this Thursday
The British Pound will see only limited gains from a Bank of Englandinterest rate rise this week, according to analysts at pan-European lender Danske Bank, who are arguing that the currency will remain hamstrung by uncertainty until there is clarity around the UK's departure from the European Union.
However, an eventual Brexit deal that offers companies certainty over the parameters of the future relationship, as well as avoiding a disorderly exit, should eventually yield a 7% increase in the Pound-to-Euro exchange rate
https://www.poundsterlinglive.com/eur/9590-pound-to-euro-exchange-rate-short-term-gains
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See above
Well spotted.
It does not say what a 'no deal' would do to the pound.
How accurate was that prediction
https://www.bbc.co.uk/news/business-41846330
Totally wrong then!
What prediction did your link provide for pound / euro.
There wont be a no deal.
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Who do you think will blink first?
Sorry, wrong question.
Who do you think can afford to blink last?
I wasnt talking about that, do keep up
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