Cambon Posted December 31, 2008 Share Posted December 31, 2008 Perhaps the miners remember when Churchill had them forced down the mines at bayonet point? Unfortunately Mr C the major difference between then and now is that the £ used to be pegged. Now it is allowed to float. Such an enormous difference makes your comparisons between then and now somewhat meaningless. When you add the simple fact that the other favourite economic tool of government, interest rates, are now in the hands of the BoE then it's a lot harder to blame the gov for the current woes. With the pound floating essentially UK PLC is in the hands of those generating it's wealth which should be all of us. That unfortunately includes the likes of the executive boards at Northern Crock, RBS, Bradford and Bingley, HBOS etc. Yes, the labour government passing control of interest rates to the BOE was inspired. Basically the BOE take advice on the economy from the government and use it to decide the rates. So, indirectly the government still control the rates but don't get the blame. Inspired! Northern Rock is the most interesting one that you mention. As of a couple of months ago they had paid off 15 of the 25 million borrowed, and only owed 11.5 million including interest. Much of this repayment was due to sale of assets but it had turned a serious corner and was looking to free from government debt by mid 2009. As soon as broon and no 11 got wind of this they started trying to bring in new idea like the grace period for mortgage defaulters, started putting pressue on lenders to pass on more of the rate cuts (lowering profits), making it more difficult for NR and the others to get out of government control. Lloyds played the best one. When in discussions with the government they were told that if they borrowed from the government they had to suspend all dividends, etc. Lloyds then reminded the government that they only needed the money if they were to take over HBOS, and if they could not retain their dividend they scrap the HBOS plans. Needles to say Lloyds are in the process of taking over HBOS and have retained their dividend! Link to comment Share on other sites More sharing options...
P.K. Posted December 31, 2008 Share Posted December 31, 2008 Yes, the labour government passing control of interest rates to the BOE was inspired. Basically the BOE take advice on the economy from the government and use it to decide the rates. So, indirectly the government still control the rates but don't get the blame. Inspired! Actually you couldn't be more wrong. The "advice" the BoE gets from government is about their last economic tool - taxation. A very interesting piece on Prof "Danny" Blanchflower who will be leaving the BoE MPC. He saw what was coming but the rest of the MPC wouldn't shift, to wit: The Treasury will miss him. Officials there have watched helplessly this year as Blanchflower has tried to cajole his (MPC) colleagues into cutting rates - something they were desperate for. The BoE MPC sounds rather too independent to me Mr C... It always makes me smile when folks mention things like "the three day week". This is a democracy you know, you can withdraw your labour if you want to... Link to comment Share on other sites More sharing options...
Lonan3 Posted December 31, 2008 Share Posted December 31, 2008 Prof "Danny" Blanchflower[/url] who will be leaving the BoE MPC. Wow! He's done well for a dead footballer! Link to comment Share on other sites More sharing options...
pongo Posted December 31, 2008 Share Posted December 31, 2008 Current unemployment figures don't look too bad compared with the early 80s, but labour changed the way it is calculated, taking out large sections of the population And so did the Conservative govt previously. In neither case is there any evidence of a nefarious motive. The way in which figures are calculated is often changed. So with auto manufacturers laying off workers for several months on low pay, major retailer like F.W. Woolworth and MFI going bust, and the pound worth little in most foreign markets, we are not far away from needing another Maggie. You cannot blame the UK govt for Woolworths and MFI. They were crappy brands and it is surprising they even lasted so long. The motor industry needs to innovate and slim down. As soon as broon and no 11 got wind of this they started trying to bring in new idea like the grace period for mortgage defaulters, started putting pressue on lenders to pass on more of the rate cuts (lowering profits), making it more difficult for NR and the others to get out of government control. More or less in line with what everyone in Britain has been calling on the govt to do. You seem to be quite partisan about not liking the Labour govt. Link to comment Share on other sites More sharing options...
P.K. Posted December 31, 2008 Share Posted December 31, 2008 As soon as broon and no 11 got wind of this they started trying to bring in new idea like the grace period for mortgage defaulters, started putting pressue on lenders to pass on more of the rate cuts (lowering profits), making it more difficult for NR and the others to get out of government control. More or less in line with what everyone in Britain has been calling on the govt to do. You seem to be quite partisan about not liking the Labour govt. Cambon believes what he reads in The Daily Mail! Unbelievably strange but true. Little wonder his tenuous grasp of the situation is a tad anti-Labour. I mean, claiming the MPC is under government control is one of the most ridiculous things I've ever seen posted. Had the Treasury had more sway over Mervyn and His Merry Men then things wouldn't have got so bad. Jeeeze... Are all Wail readers as misinformed???? Link to comment Share on other sites More sharing options...
Dunroamin Posted January 1, 2009 Share Posted January 1, 2009 Anyway, back to the thread...............anyone see this for an unbiased assessment of the Euro after 10 years http://www.telegraph.co.uk/finance/comment...umph-at-10.html Link to comment Share on other sites More sharing options...
GD4ELI Posted January 1, 2009 Share Posted January 1, 2009 Anyway, back to the thread...............anyone see this for an unbiased assessment of the Euro after 10 years http://www.telegraph.co.uk/finance/comment...umph-at-10.html Yes - IMO the first ten years have been a great success, and as America declines over the next few decades the Euro will become even more important. I'm sure I'm correct in saying that it's the most traded currency today and in some countries such as Brazil it is preferred to the US$. Link to comment Share on other sites More sharing options...
Dunroamin Posted January 1, 2009 Share Posted January 1, 2009 Anyway, back to the thread...............anyone see this for an unbiased assessment of the Euro after 10 years http://www.telegraph.co.uk/finance/comment...umph-at-10.html Yes - IMO the first ten years have been a great success, and as America declines over the next few decades the Euro will become even more important. I'm sure I'm correct in saying that it's the most traded currency today and in some countries such as Brazil it is preferred to the US$. Funny that......I took it to mean that there are enormous problems being stored up in Euro countries due to the strength of the currency ie Spain and Italy loss of cost effectiveness, France not being able to sell Airbus etc etc. I think this is cyclical and that anyone with Euros should be looking to get out rather than in - no matter the marginally higher inerest rate available! So long as gold and oil are quoted in USD, then the dollar will be the currency of choice as the Sovereign funds and Far Eastern wealthy countries have too many USD and investments in the US. Link to comment Share on other sites More sharing options...
Sebrof Posted January 1, 2009 Share Posted January 1, 2009 Anyway, back to the thread...............anyone see this for an unbiased assessment of the Euro after 10 years http://www.telegraph.co.uk/finance/comment...umph-at-10.html Unbiased? The Daily Telegraph is of course renowned for its objectivity when it comes to anything European. S Link to comment Share on other sites More sharing options...
Cambon Posted January 2, 2009 Share Posted January 2, 2009 Cambon believes what he reads in The Daily Mail! Unbelievably strange but true. Little wonder his tenuous grasp of the situation is a tad anti-Labour. I mean, claiming the MPC is under government control is one of the most ridiculous things I've ever seen posted. Had the Treasury had more sway over Mervyn and His Merry Men then things wouldn't have got so bad. Jeeeze... Are all Wail readers as misinformed???? And you only believe what you read in your "lefty" rags. Albert Tatlock is so correct when he says Labour have dumbed down society over the past decade or so. They really have! Link to comment Share on other sites More sharing options...
gazza Posted January 2, 2009 Author Share Posted January 2, 2009 the euro will drop in the next comeing months, so like somebody said above, its best to be getting out than in at the moment Link to comment Share on other sites More sharing options...
Sebrof Posted January 2, 2009 Share Posted January 2, 2009 the euro will drop in the next comeing months, so like somebody said above, its best to be getting out than in at the moment What's it going to drop against, Gazza? The pound, which is in the worst state of all (excluding Iceland's krona)? The dollar, which is shortly going to be hit by the massive cost of bailing out the car firms - or the massive consequences if they are allowed to go the the wall? The yen, where the country is already in recession, and still hasn't recovered from the problems it had 15 years ago? The renminbi, which is going to be hard hit as the demand for Chinese goods dries up? The rupee, which is in a similar position? The rouble, which has already devalued and will soon be forced to do so again? The Swiss franc, which is under pressure because the Swiss banks are in a mess? The Swazi lilangeni? Ah, yes, the lilangeni. Perhaps it will fall against the lilangeni. Now that WILL be a problem. S Link to comment Share on other sites More sharing options...
P.K. Posted January 2, 2009 Share Posted January 2, 2009 You should invest in the Dong. But only because it has the best name of any currency... Link to comment Share on other sites More sharing options...
GD4ELI Posted January 2, 2009 Share Posted January 2, 2009 The Swiss franc, which is under pressure because the Swiss banks are in a mess? The Swiss franc is currently very strong, the Swiss economy is not being hit too hard by the credit crunch / recession. Were I to move back to the Island now would be the time to buy, my francs have 50% more value than this time last year. Nice house in the north of the Island for the price of a small appartment in a Swiss resort :-) My 2009 prognosis is that the US$ will rise against the Swiss franc and Euro by about 20% by the end of the year. The pound - nothing special until the next election whenever that is (don't know and don't care). Link to comment Share on other sites More sharing options...
Cambon Posted January 2, 2009 Share Posted January 2, 2009 the euro will drop in the next comeing months, so like somebody said above, its best to be getting out than in at the moment What's it going to drop against, Gazza? I think they will devalue it by lowering the ECB rate. They will have to. UK banks have no money to lend, so in order to lend they need to borrow from foreign banks, but that will be at foreign bank's interest rates, not UK rates. It would be commercial suicide to lend at a rate less than they are borrowing for so until cheaper money becomes available it is not going to happen. It has already been speculated that uk rates will probably drop further next Thursday. Nationwide have already stated that they will not pass on any more rate cuts. So the buck stops there. Link to comment Share on other sites More sharing options...
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