Topic: UK Downgraded from LOL to LMAO - page 2. (Read 10509 times)
Lol at UK, EVERY EUR AND USD country will suffer from devalued fiat. Stack on BTC you freaks.
Well played Westminster. You've kept running a huge deficit without sinking the pound and kept house prices astronomical whilst pushing down wages. Bonus marks for condoning zero hours contracts. Bravo.
Come on Scotland, this your chance to start a fight back. Say YES and this thread will get busy. Losing 10% of its GDP and all of its oil will have Westminster up in a heap. They don't like it up'em!
Come on Scotland, this your chance to start a fight back. Say YES and this thread will get busy. Losing 10% of its GDP and all of its oil will have Westminster up in a heap. They don't like it up'em!
People will pay for internet before because it is more like air for them. I run a boarding house, i.e., poor and young international people. When people arrive the first thing they want to know is the wifi password. They don't want water, they don't want to know where a grocery store is, they want their AIR i.e., internet.
Also %8 financing costs is nothing. The US is paying over %10 by my calculations (still low) and Canada is paying almost %25, now that's kind of high. If you're right about it being %8 people in the normal financial merry go-round should consider buying pounds and gilts.
Also %8 financing costs is nothing. The US is paying over %10 by my calculations (still low) and Canada is paying almost %25, now that's kind of high. If you're right about it being %8 people in the normal financial merry go-round should consider buying pounds and gilts.
The only part I disagree with is stocking up on Bitcoins. Bitcoins are nice, but you NEED internet to use them. In the event that the UK were to collapse and inflation jumps through the roof, most people will choose to abandon paying for access to the internet over being able to buy a loaf of bread to feed their family.
Bitcoin works as long as the system at least somewhat works. Not to say it won't go on somewhere in the world, as the whole system is unlikely to break all at once (and if it were to, then all out chaos would ensue and the internet would matter little as it is), but if one of the world's superpowers were to drop into anarchy, I suspect limited internet access would be a casualty of such an event, making bitcoins quite useless in that state until such a time things normalized.
Bitcoin works as long as the system at least somewhat works. Not to say it won't go on somewhere in the world, as the whole system is unlikely to break all at once (and if it were to, then all out chaos would ensue and the internet would matter little as it is), but if one of the world's superpowers were to drop into anarchy, I suspect limited internet access would be a casualty of such an event, making bitcoins quite useless in that state until such a time things normalized.
common misconception.
you can actually transfer bitcoins without internet, if you create your own peer-to-peer network. This can work with mobile phones, wifi hotspots, medium-range communication devices, pretty much anything will work really. As long as enough people participate in a network, and as long as there are some miners on the network, it doesn't have to be the internet per se. A smart engineer might be able to create such a system with very limited resources. For example, radiowaves are very easy to use and do not need a lot of materials at all (a lot of people made their own radios during ww2 to hear the news).
The (local) collapse of the internet would only prove to be a problem to banks, and not at all to bitcoin.
You still need to post the mined blocks to the bitcoin network, no? Yes, you could sign over coins, but until those transactions are recorded in the primary blockchain, they could be easily double spent. I think you'd need some way to ensure that everyone on the local network is honest and ensure that the local miners quickly post all the transactions to the real blockchain when the internet is up and running (before people double spend all the coins spent locally).
UK 10 yr Gilt over 3% again. Woop woop 
http://www.bloomberg.com/quote/GUKG10:IND
3% of the £1500 billion national debt is £45 billion. About 8% of government tax revenue going towards interest. How long can the madness continue
Quote
UK Govt Bonds 10 Year Note Generic Bid Yield GUKG10:IND 3.09%
http://www.bloomberg.com/quote/GUKG10:IND
3% of the £1500 billion national debt is £45 billion. About 8% of government tax revenue going towards interest. How long can the madness continue
Do you even read what you post?
The rise in bond rates is a good thing for the government. It indicates that private industry is now a better investment than government debt which in turn indicates that the government has a tsunami of tax receipts heading its way. Even if the market is wrong, the government still gets the stamp duty and VAT and other taxes but if the market is right, the government is going to have funds for tax cuts before the next election.
I'm really baffled why you are posting the good news that we are almost recovered from the 2008 crash as if it were bad news.
The only part I disagree with is stocking up on Bitcoins. Bitcoins are nice, but you NEED internet to use them. In the event that the UK were to collapse and inflation jumps through the roof, most people will choose to abandon paying for access to the internet over being able to buy a loaf of bread to feed their family.
Bitcoin works as long as the system at least somewhat works. Not to say it won't go on somewhere in the world, as the whole system is unlikely to break all at once (and if it were to, then all out chaos would ensue and the internet would matter little as it is), but if one of the world's superpowers were to drop into anarchy, I suspect limited internet access would be a casualty of such an event, making bitcoins quite useless in that state until such a time things normalized.
Bitcoin works as long as the system at least somewhat works. Not to say it won't go on somewhere in the world, as the whole system is unlikely to break all at once (and if it were to, then all out chaos would ensue and the internet would matter little as it is), but if one of the world's superpowers were to drop into anarchy, I suspect limited internet access would be a casualty of such an event, making bitcoins quite useless in that state until such a time things normalized.
common misconception.
you can actually transfer bitcoins without internet, if you create your own peer-to-peer network. This can work with mobile phones, wifi hotspots, medium-range communication devices, pretty much anything will work really. As long as enough people participate in a network, and as long as there are some miners on the network, it doesn't have to be the internet per se. A smart engineer might be able to create such a system with very limited resources. For example, radiowaves are very easy to use and do not need a lot of materials at all (a lot of people made their own radios during ww2 to hear the news).
The (local) collapse of the internet would only prove to be a problem to banks, and not at all to bitcoin.
UK 10 yr Gilt over 3% again. Woop woop
http://www.bloomberg.com/quote/GUKG10:IND
3% of the £1500 billion national debt is £45 billion. About 8% of government tax revenue going towards interest. How long can the madness continue
Quote
UK Govt Bonds 10 Year Note Generic Bid Yield GUKG10:IND 3.09%
http://www.bloomberg.com/quote/GUKG10:IND
3% of the £1500 billion national debt is £45 billion. About 8% of government tax revenue going towards interest. How long can the madness continue
swap your sterling for btc... before its too late.
Carney says UK growth driven by housing market
http://uk.news.yahoo.com/boes-carney-says-uk-growth-driven-housing-market-194419701--business.html#iiuIbTL
Carney is going for broke with a credit boom in the hope that it can keep all the plates spinning before the next general election. Credit is getting easier to find even though wages, hours and general employment are all decreasing. I've noticed 0% credit card offers are starting to come in the post again. Most people will gorge themselves on the credit offers with those at the bottom buying new plasma TVs on instalments and people at the top buying shitty rat infested Victorian terraced houses for one million pounds with fifty year mortgages.
He also said that he has other tricks up his sleeve to avoid raising interest rates. I wouldn't be surprised if the Bank of England eventually got into the mortgage game themselves with intergeneration 0% deals. Asset prices are sacrosanct on this fantasy island.
I can't find the strength to be angry now. They've crushed me and a generation of my peers
Quote
Britain's economic recovery is at an early stage and is still reliant on rising house prices and consumer demand, Bank of England Governor Mark Carney said in an interview on Tuesday.
"At this stage most of the growth in momentum is coming from the household sector and there's a pick-up in the housing market from quite low levels," he said in an interview with Cardiff's Western Mail newspaper while on a visit to the Welsh capital.
Earlier on Tuesday central bank data showed that mortgage approvals hit a five-year high, accompanied by a modest increase in lending to larger businesses, which Carney said was broadly where he wanted it to be at this stage in the recovery.
But he added in an advance copy of the interview published on the paper's website that he would be vigilant about any future excessive lending to households, and that he hoped to see more access to finance for start-up companies to give growth a firmer footing.
"We may not see very strong net lending figures but it's important that new businesses are getting access to credit because now we're starting to be at a point in the recovery where that should really start to happen," he said.
Britain's economy has recovered strongly since the start of the year after a lengthy period of stagnation following the deep 2008-09 recession.
But much of the growth has been helped by rising consumer spending at a time when take-home pay is still falling in real terms, raising doubts about its sustainability.
Some economists are also concerned that government schemes to encourage house purchases may lead to untenable increases in prices, though the rises are so far concentrated in London and neighbouring regions.
Carney stressed that housing transactions were still almost a third below pre-crisis levels, and that the central bank had other tools at its disposal to avoid it having to raise interest rates to tame house price rises in one part of the country.
"If there are imbalances ... in some parts of the economy, whether it's a sector such as housing or some regions, we can to a degree help lean against those so that we don't use our broadest tool, which is monetary policy, to try to attack a specific issue in a specific part of the country," he said.
In April the BoE gained powers to tweak lending rules for banks on a sector-by-sector basis, and shortly after his arrival in July, Carney committed the central bank to keep its main interest rate on hold until unemployment falls to 7 percent from its current 7.7 percent.
"We're not going to look to tighten monetary policy until we see real traction and momentum in this recovery that has been sustained for some time," Carney said on Tuesday, echoing language on monetary policy he had used the previous week.
"At this stage most of the growth in momentum is coming from the household sector and there's a pick-up in the housing market from quite low levels," he said in an interview with Cardiff's Western Mail newspaper while on a visit to the Welsh capital.
Earlier on Tuesday central bank data showed that mortgage approvals hit a five-year high, accompanied by a modest increase in lending to larger businesses, which Carney said was broadly where he wanted it to be at this stage in the recovery.
But he added in an advance copy of the interview published on the paper's website that he would be vigilant about any future excessive lending to households, and that he hoped to see more access to finance for start-up companies to give growth a firmer footing.
"We may not see very strong net lending figures but it's important that new businesses are getting access to credit because now we're starting to be at a point in the recovery where that should really start to happen," he said.
Britain's economy has recovered strongly since the start of the year after a lengthy period of stagnation following the deep 2008-09 recession.
But much of the growth has been helped by rising consumer spending at a time when take-home pay is still falling in real terms, raising doubts about its sustainability.
Some economists are also concerned that government schemes to encourage house purchases may lead to untenable increases in prices, though the rises are so far concentrated in London and neighbouring regions.
Carney stressed that housing transactions were still almost a third below pre-crisis levels, and that the central bank had other tools at its disposal to avoid it having to raise interest rates to tame house price rises in one part of the country.
"If there are imbalances ... in some parts of the economy, whether it's a sector such as housing or some regions, we can to a degree help lean against those so that we don't use our broadest tool, which is monetary policy, to try to attack a specific issue in a specific part of the country," he said.
In April the BoE gained powers to tweak lending rules for banks on a sector-by-sector basis, and shortly after his arrival in July, Carney committed the central bank to keep its main interest rate on hold until unemployment falls to 7 percent from its current 7.7 percent.
"We're not going to look to tighten monetary policy until we see real traction and momentum in this recovery that has been sustained for some time," Carney said on Tuesday, echoing language on monetary policy he had used the previous week.
http://uk.news.yahoo.com/boes-carney-says-uk-growth-driven-housing-market-194419701--business.html#iiuIbTL
Carney is going for broke with a credit boom in the hope that it can keep all the plates spinning before the next general election. Credit is getting easier to find even though wages, hours and general employment are all decreasing. I've noticed 0% credit card offers are starting to come in the post again. Most people will gorge themselves on the credit offers with those at the bottom buying new plasma TVs on instalments and people at the top buying shitty rat infested Victorian terraced houses for one million pounds with fifty year mortgages.
He also said that he has other tricks up his sleeve to avoid raising interest rates. I wouldn't be surprised if the Bank of England eventually got into the mortgage game themselves with intergeneration 0% deals. Asset prices are sacrosanct on this fantasy island.
I can't find the strength to be angry now. They've crushed me and a generation of my peers
Some of you should start watching Ron Paul, Max Keiser, Nigel Farage and others, you will find out how we are being deceived.
Long live Bitcoin, Gold and Silver.
Long live Bitcoin, Gold and Silver.
You're preaching to the choir buddy.
Some of you should start watching Ron Paul, Max Keiser, Nigel Farage and others, you will find out how we are being deceived.
Long live Bitcoin, Gold and Silver.
Long live Bitcoin, Gold and Silver.
The yield on HM gilts keeps on rising. They blasted through 3% this week as the market tries to call Carney's bluff on his interest rate promise. Will Carney do the right thing by raising the benchmark rate and killing the London house price bubble at the same time? Not a chance!!
His new bff George Osbourne needs to finance another £200bn of government debt between now and April 2015. It's highly likely Carney will kill two birds with one stone and QE infinity until rates are down and an average slave box apartment in a London sink estate costs £1 million
His new bff George Osbourne needs to finance another £200bn of government debt between now and April 2015. It's highly likely Carney will kill two birds with one stone and QE infinity until rates are down and an average slave box apartment in a London sink estate costs £1 million
Bank of England enters interest rate Twilight Zone
http://www.telegraph.co.uk/finance/bank-of-england/10228255/Bank-of-England-ties-interest-rates-to-fall-in-unemployment.html
We're now in uncharted territory where rising unemployment will cause a mini housing boom because of ultra low interest rates. Any semblance towards keeping food and fuel inflation in check has truly gone out window. Bizarre times.
http://www.telegraph.co.uk/finance/bank-of-england/10228255/Bank-of-England-ties-interest-rates-to-fall-in-unemployment.html
Quote
Bank of England ties interest rates to fall in unemployment
Interest rates are set to remain at a record low of 0.5pc for three more years after Mark Carney, the Bank of England’s new Governor, pledged to keep them on hold until the official unemployment rate hit 7pc.
In a radical switch to “forward guidance” for UK monetary policy, Mr Carney answered the Chancellor’s call to underpin the recovery by introducing the unemployment goal alongside its central 2pc inflation target.
The pledge was made despite a big improvement in the Bank’s outlook for the UK. It upgraded its growth forecast for this year from 1.2pc to 1.4pc and for next year from 1.7pc to 2.5pc, and Mr Carney said “a renewed recovery is now underway”.
However, he claimed that “this is exactly the time when something like this [forward guidance] is appropriate” and that the whole point of exceptional monetary stimulus was to get “the recovery going”.
Britain’s 7pc unemployment target is a mirror of the US policy, which has set a 6.5pc trigger. For unemployment in the UK to fall from its current rate of 7.8pc to 7pc, some 250,000 net jobs would have to be created today.
Interest rates are set to remain at a record low of 0.5pc for three more years after Mark Carney, the Bank of England’s new Governor, pledged to keep them on hold until the official unemployment rate hit 7pc.
In a radical switch to “forward guidance” for UK monetary policy, Mr Carney answered the Chancellor’s call to underpin the recovery by introducing the unemployment goal alongside its central 2pc inflation target.
The pledge was made despite a big improvement in the Bank’s outlook for the UK. It upgraded its growth forecast for this year from 1.2pc to 1.4pc and for next year from 1.7pc to 2.5pc, and Mr Carney said “a renewed recovery is now underway”.
However, he claimed that “this is exactly the time when something like this [forward guidance] is appropriate” and that the whole point of exceptional monetary stimulus was to get “the recovery going”.
Britain’s 7pc unemployment target is a mirror of the US policy, which has set a 6.5pc trigger. For unemployment in the UK to fall from its current rate of 7.8pc to 7pc, some 250,000 net jobs would have to be created today.
We're now in uncharted territory where rising unemployment will cause a mini housing boom because of ultra low interest rates. Any semblance towards keeping food and fuel inflation in check has truly gone out window. Bizarre times.
Mark Carney to keep interest rates at 0.5% forever, or something like that
http://www.telegraph.co.uk/finance/mark-carney/10220689/Mark-Carney-to-unveil-pre-commitment-on-interest-rates.html
Phew that's fortunate. Mortgage holders can breath a sigh of relief. No need to worry, Go on a spending spree. It's the patriotic thing to do. Better yet do it all on credit. Mark's got your back keeping rates at 0.5% for the foreseeable future. Unlucky for Jack that his mortgage lasts 30 years and Mark will be retired sunning himself on a beach in two years.
The country is in a Catch-22 situation now. Keeping rates low will weaken the pound and boost inflation which is going to hurt everyone since we import so much. However raising rates to counter that will push mortgage holders over the edge. What's Mark going to do?? Here's a hint: Look at the members interests for the Houses of Parliament and count how many MPs are balls deep in buy to let. There's your answer!
http://www.telegraph.co.uk/finance/mark-carney/10220689/Mark-Carney-to-unveil-pre-commitment-on-interest-rates.html
Quote
Mark Carney to unveil 'pre-commitment' on interest rates
In Burnham-on-Sea in Somerset, Jack Horwood has been thinking about buying a new dishwasher. The 23-year-old, who has two business and administration qualifications and works at a national trade union, also yearns for more nights out in Bristol seeing the comedy shows.
Instead, he and his girlfriend are squirrelling away their wages to prepare for higher mortgage payments when interest rates rise. Horwood says they would probably spend £200 a month more if they knew rates would be unchanged for another two years.
On Wednesday, Mark Carney, the Bank of England’s new Governor, is expected to give Horwood, and the thousands like him across the country, just the kind of reassurance they are looking for. In a radical first for UK central bank policy making, the Canadian will unveil a “pre-commitment” on interest rates, with a pledge to keep then low for longer.
In Burnham-on-Sea in Somerset, Jack Horwood has been thinking about buying a new dishwasher. The 23-year-old, who has two business and administration qualifications and works at a national trade union, also yearns for more nights out in Bristol seeing the comedy shows.
Instead, he and his girlfriend are squirrelling away their wages to prepare for higher mortgage payments when interest rates rise. Horwood says they would probably spend £200 a month more if they knew rates would be unchanged for another two years.
On Wednesday, Mark Carney, the Bank of England’s new Governor, is expected to give Horwood, and the thousands like him across the country, just the kind of reassurance they are looking for. In a radical first for UK central bank policy making, the Canadian will unveil a “pre-commitment” on interest rates, with a pledge to keep then low for longer.
Phew that's fortunate. Mortgage holders can breath a sigh of relief. No need to worry, Go on a spending spree. It's the patriotic thing to do. Better yet do it all on credit. Mark's got your back keeping rates at 0.5% for the foreseeable future. Unlucky for Jack that his mortgage lasts 30 years and Mark will be retired sunning himself on a beach in two years.
The country is in a Catch-22 situation now. Keeping rates low will weaken the pound and boost inflation which is going to hurt everyone since we import so much. However raising rates to counter that will push mortgage holders over the edge. What's Mark going to do?? Here's a hint: Look at the members interests for the Houses of Parliament and count how many MPs are balls deep in buy to let. There's your answer!
The pound sterling is the oldest currency in existence (The current US Dollar has only existed since 1971). Its demise is long overdue.
The zombies are coming!!!!!!!
http://www.telegraph.co.uk/finance/personalfinance/borrowing/loans/10187390/20m-adults-concerned-about-debt.html
High living costs leading to perpetual debt servitude. The middle classes are being replaced by zombie debtors. All going to plan for our Norman overlords
http://www.telegraph.co.uk/finance/personalfinance/borrowing/loans/10187390/20m-adults-concerned-about-debt.html
Quote
20m adults concerned about debt
More than 20 million UK adults worry about personal debt, with two-thirds blaming the cost of living for their financial troubles.
The number of debt-ridden adults who worry about their finances has risen by 8pc since February, according to a survey by insolvency trade body R3.
One fifth of UK adults say they are "very" or "extremely" concerned about their current debts.
Worryingly, 42pc of adults said they struggled to make it to pay day, with most saying the high cost of living was to blame.
Liz Bingham, president of R3, said: “Although the economy is starting to pick up, many families are finding themselves left behind, weighed down by the cost of the day-to-day.
“There is a sizeable chunk of the population in a very precarious position. They are renting, they have no savings, and they are only able to pay off the interest on their debts without making any headway into the principal. These people have no financial buffer to cope with any increase in the cost of living.”
More than 20 million UK adults worry about personal debt, with two-thirds blaming the cost of living for their financial troubles.
The number of debt-ridden adults who worry about their finances has risen by 8pc since February, according to a survey by insolvency trade body R3.
One fifth of UK adults say they are "very" or "extremely" concerned about their current debts.
Worryingly, 42pc of adults said they struggled to make it to pay day, with most saying the high cost of living was to blame.
Liz Bingham, president of R3, said: “Although the economy is starting to pick up, many families are finding themselves left behind, weighed down by the cost of the day-to-day.
“There is a sizeable chunk of the population in a very precarious position. They are renting, they have no savings, and they are only able to pay off the interest on their debts without making any headway into the principal. These people have no financial buffer to cope with any increase in the cost of living.”
High living costs leading to perpetual debt servitude. The middle classes are being replaced by zombie debtors. All going to plan for our Norman overlords
someone just needs to create a new cryptocoin that will give rewards so that there is a 4% inflation indefinatly....
problem solved
problem solved
It's quite possible you are joking, but I'll answer anyway because I'm in the mood:
Are you serious? I doubt this would solve anything. For example freicoin has something that has a similar effect: demurrage. It causes money to lose value over time (similar to inflation). It's slightly better than inflation because it doesn't do that by increasing the money supply and giving the newly printed money to a select few (as is done with state-enforced fiat).
The main problem with this approach is that it resembles "bad money". Noone wants to use it for storing wealth because the crap keeps losing value. Such money can only be forced on people (as we see with state-sponsored fiat money). It's highly unlikely it would be used voluntarily.
The whole "the economy must grow" mantra is a farce anyway. An economy can grow, of course, but in general it's more like a living organism: it must inhale and exhale. An inflationary currency forced on it is like injecting growth hormones at arbitrary locations of the body. It will lead to tumors and a gernerally sick condition. Inflation is a hidden tax. The parasitical governments of the world cannot tax the wealth gains in a deflationary environment and therefore need to force inflationary crap on us.
An consistently growing economy is also very much like a living organism: cancer. It grows and grows, consuming everything in it's path.
someone just needs to create a new cryptocoin that will give rewards so that there is a 4% inflation indefinatly....
problem solved
problem solved
It's quite possible you are joking, but I'll answer anyway because I'm in the mood:
Are you serious? I doubt this would solve anything. For example freicoin has something that has a similar effect: demurrage. It causes money to lose value over time (similar to inflation). It's slightly better than inflation because it doesn't do that by increasing the money supply and giving the newly printed money to a select few (as is done with state-enforced fiat).
The main problem with this approach is that it resembles "bad money". Noone wants to use it for storing wealth because the crap keeps losing value. Such money can only be forced on people (as we see with state-sponsored fiat money). It's highly unlikely it would be used voluntarily.
The whole "the economy must grow" mantra is a farce anyway. An economy can grow, of course, but in general it's more like a living organism: it must inhale and exhale. An inflationary currency forced on it is like injecting growth hormones at arbitrary locations of the body. It will lead to tumors and a gernerally sick condition. Inflation is a hidden tax. The parasitical governments of the world cannot tax the wealth gains in a deflationary environment and therefore need to force inflationary crap on us.
someone just needs to create a new cryptocoin that will give rewards so that there is a 4% inflation indefinatly....
problem solved
problem solved
What happens to gold price if interest goes up, does it drop?
The best answer is maybe.
Rising rates are deflationary for the money supply. Historically, with gold backed money, this meant gold price would rise as people needed gold to pay the higher interest. In modern times, however there is no such link. One might argue gold could drop due to people needing to raise liquid capital. But then again, one could argue that gold could rise because the large institutions shorting it would need to close out their positions to recover their collateral.
If interest rates go up every mortgage taken out in London and the South East of England since 2005 is going to go into default. It's not possible for mortgage holders to absorb exponential increases in the cost of lending when wages are at best stagnant and food prices are going up 14.3%.
Many of those mortgages are interest only with no repayment vehicle. The banks will be fucked.
There have to be some fixed rate mortgages out there, but I agree there will be trouble. Again, history says gold will tend to be a fall back and will recover first. But there are new forces at play this time, so I say maybe.
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