RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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Bank of England has just announced another 0.5% to 1.5% which is the lowest in the Banks 315 year history.
That combined with the plan to produce more cash and the weakness of the pond are going to take the country years to recover from
[Edited on 08-01-2009 by LiVe LeE]
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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Hammer
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Registered: 11th Feb 04
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Link?
I've only heard it's expected rather than announced.
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Ojc
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Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
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Printing money is bad, this is fucking horrendous in fact. The last country to do this was Germany in the 1920's and what a fcuking mess they ended up in. I know Japan did something similar at the start of this decade but they have a good electronics industry to pull themselves through, WTF do we have?
Christ almighty we are in shit street.
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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http://news.bbc.co.uk/1/hi/business/7817453.stm
The Bank of England has cut interest rates to 1.5%, the lowest level in its 315-year history, as it continues efforts to aid an economic recovery.
The half percentage point reduction brings interest rates below 2% for the first time since the Bank of England was founded in 1694.
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Hammer
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Registered: 11th Feb 04
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Printing money isn't all that bad, quantitive easing is a last resort but it can kick start economies.
You end up pretty much losing control of inflation but at least people will be spending.
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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The treasury are denying claims about printing more money - which just means they'll do it on the quiet 
http://news.bbc.co.uk/1/hi/business/7817063.stm
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Aaron
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Registered: 9th Aug 04
Location: Cottingham, East Riding
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quote:
Originally posted by Ojc
Germany in the 1920's and what a fcuking mess they ended up in.
My History teacher brought in an old Million Mark note for us all to see 
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Hammer
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Registered: 11th Feb 04
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They've said they'll only be taking such measures when the base rate is pretty much 0%
Doing it on the fly isn't all bad, if people are ignorant to it the confidence in thr currency doesn't dovetail.
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VegasPhil
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Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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Of they do it surley our currency will end up being worth less? 
Corsa 2.0 16v Vegas - Sold
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C2RL R
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Registered: 28th Mar 02
Location: Redcliffe, QLD
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fucking hell i never thought it'd get that low. shocked!
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Hammer
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Registered: 11th Feb 04
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quote:
Originally posted by VegasPhil
Of they do it surley our currency will end up being worth less?
It's based on peoples perception of a currencys value or confidence in it.
It stems from when it was still based on a gold standard and people worried they won't be able to trade their cash for gold from the government...which in turn caused inflation.
That's the biggest worry of printing more money, no one really has control of inflation rates.
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corsa5dr
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Registered: 12th Jan 03
Location: Bath/Bristol - Evo 4 GSR
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Happy days - thats my mortgage reduced again - Halifax Tracker Mortgage FTW!
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Kevxx
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Registered: 14th May 08
Location: Forfar, Angus
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quote:
Originally posted by corsa5dr
Happy days - thats my mortgage reduced again - Halifax Tracker Mortgage FTW!
fi they let you benefit from it...
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