Of UK bank rate, Swervin' Mervyn and the future...

[Lodian1019]

The only one part that's a net contributor.

Do we even want to go down the road of North Sea Oil?

And perhaps I was little sarcastic but its annoying, just shows a lack of understanding of another country. It would be like me assuming all Americans are from Texas. (Relative to Size off course)

Lodian1019

 

[oiltanker]

imo rates unlikely to move over global commodity inflation [the oligarch tax] but would if unemployment starts to shrink. employment would start real inflation rather than this smash and grab tax the poor to keep profits up inflation. so nothing to do at the moment other than stop people speculating on commodities.

gold is a red herring. as one blog pointed out gold has risen 50%. so how much inflation are they expecting?

 

[meanreversion]

The one to watch out for is rice, the staple food of Asia. It's been stable for the last six months now, which is a good thing.

Interesting quote in the Economist this week - "being long commodities is shorting human ingenuity".

 

[breadman]

Do we even want to go down the road of North Sea Oil?

And perhaps I was little sarcastic but its annoying, just shows a lack of understanding of another country. It would be like me assuming all Americans are from Texas. (Relative to Size off course)

Lodian1019

what a load of rubbish, I am well aware that the Bank of England makes the decisions for England Wales Scotland and Northern Ireland. Interest rates go up and down for everyone at the same time. Whether I say rates are low in England or the UK it does not matter.

 

[Pazienza]

Do we even want to go down the road of North Sea Oil?

And perhaps I was little sarcastic but its annoying, just shows a lack of understanding of another country. It would be like me assuming all Americans are from Texas. (Relative to Size off course)

Lodian1019

Can do if you want, doesn't make any difference. Scotland is a permanent welfare junkie, although in this respect it is much like many parts of England, such as the North and the Midlands.

The South East is the only net contributor.

 

[brettus]

what a load of rubbish, I am well aware that the Bank of England makes the decisions for England Wales Scotland and Northern Ireland. Interest rates go up and down for everyone at the same time. Whether I say rates are low in England or the UK it does not matter.

Yea i thought it was a bit petty too.

 

[meanreversion]

I notice Alex Salmond has gone verrrry quiet on the issue of Scottish independence, after the chaos in all the peripheral EU countries.

Scotland gave us RBS and HBOS, that wipes out any benefit of oil.

Endex (is that the right usage?)

 

[Pazienza]

I notice Alex Salmond has gone verrrry quiet on the issue of Scottish independence, after the chaos in all the peripheral EU countries.

Scotland gave us RBS and HBOS, that wipes out any benefit of oil.

Endex (is that the right usage?)

LOL That scrote is completely shameless.


Yes it is.

 

[Martinghoul]

Presumably Merv's pension pot is a good £5mio and index linked? He's a little indifferent to inflation, n'est-ce pas?

Actually, it's funny that you mention that, but the BoE pension scheme is final salary, RPI-linked and heavily invested in index-linked gilts and corps.

He's great on Zero Hedge that lad..

Ahahaha, touche . I am pretty sure ZH, SeekingAlpha and others all reference MM posts if they like them.

Interesting point. I am not an economist, but in my view increases in prices due to VAT are not inflationary in the true sense, although they contribute to CPI and RPI. In reality, they tend to reduce the disposable income (or "money supply" in a very informal sense) of the consumer, and so could be regarded is deflationary in the longer term.

That's exactly the argument made by most of the BoE doves/moderates. Unless it makes its way into wages, commodity inflation is actually disinflationary. They argue that the heinous episodes of stagflation that the Western world experienced during the 70s - 80s all occurred because of the negotiating power of the unions, which ensured a wage-price spiral.

 

[Lodian1019]

I notice Alex Salmond has gone verrrry quiet on the issue of Scottish independence, after the chaos in all the peripheral EU countries.

Scotland gave us RBS and HBOS, that wipes out any benefit of oil.

Endex (is that the right usage?)

Scotland could never really go indpendant, and Im not defending that either.

Yes, fair enough my post was a bit typing before thinking . However if I reffered to England as just London ,arguably the only financial strength left in the UK, then some people might not be so happy or some might not care at all ,meh.

"Scotland gave us RBS and HBOS, that wipes out any benefit of oil."

LOL :clap::clap::clap::clap::clap::clap:

Go do some sums... some history... some general common sense and thinking then come back to me.

Lodian

 

[meanreversion]

Come on, I saw "Trainspotting". They're all junkies up there.

 

[meanreversion]

http://www.telegraph.co.uk/finance/.../Bank-bail-out-adds-1.5-trillion-to-debt.html

£1.5 trillion, have we produced that much oil over time?

 

[Lodian1019]

I am concious of turning this thread into what it wasn't set up for originally, I would like to talk to you about this on Skype or Yahoo messenger or Msn if you like.

lodian9 for Skype, corupt1021 for yahoo and [email protected] for msn.

and to take a quote from that valuable source you quoted.

"Their liabilities could add up to £1.5 trillion extra"

Could, not have not will.

I hate this site http://www.oilofscotland.org/scottish_north_sea_oil.html#new_oil_gas_fields because it is obviously bias to the independence Bull S**t. But there number are accurate.

There is still a potential 1.3 Trillion in Oil to come out, and its been getting drilled for the past 30 years. So yes Oil does take out the potential forecast of being dragged down by RBS and HBOS. Which employ so many across the UK both of all regions. Furthermore RBS has $2.98 Trillion in assets making it the worlds second biggest bank, so its not exactly dead money.


Lodian

 

[Martinghoul]

I am not sure how they're getting this figure... Obviously, whether to classify the govt's bank backstops as public debt is up to the ONS. However, most of these are contingent liabilities, rather than explicit guarantees, unlike Northern Rock, so I don't think they belong in the same bucket as full-fledged debt. At any rate, it's all semantics and if the ONS actually does what the Telegraph says it intends to do, it's mighty ballsy.

 

[oiltanker]

if we accept mervys assertion the world economy is a zero sum game then growing economies that have a problem with inflation means somewhere else [us?] have shrinking economies with deflation.

 

[oiltanker]

..Furthermore RBS has $2.98 Trillion in assets making it the worlds second biggest bank, so its not exactly dead money...

given debt is regarded as an 'asset' the likes of Fred the Shred made a lot of money making sure the uk had a lot of such 'assets'?

 

[Lodian1019]

Well in principle all money is debt, if every debt in the country was paid off there would be no money in circulation. So perhaps a bad asset, but an asset nonetheless.

 

[oiltanker]

perhaps a bad asset? only perhaps? these toxic assets that brought the world economy to the brink?

 

[Lodian1019]

Lol to the brink.

You think they would of let it get really far? The only reason Lehman wasn't bailed out over the weekend was because it was near election time in the US and they wanted to please main street not wall street.

At the end of the day Britain needs RBS and HBOS both of them. Yes there is ownership by the state of RBS etc but come on no one was complaining during the boom years. And people weren't forced to take out obscene mortgages they chose to , it was human greed that brought that latest down turn.

The idiot who took out 6,7,8 times there earning's loans caused the problem. Banks shouldn't of offered them, but people chose to take them.

 

[Pazienza]

And people weren't forced to take out obscene mortgages they chose to , it was human greed that brought that latest down turn.

The idiot who took out 6,7,8 times there earning's loans caused the problem. Banks shouldn't of offered them, but people chose to take them.

True.