Interest Rates Predicted To Rise Very Soon

pellow said:

Anyone who thinks interest rates cannot rise believes we have full control of our currency and a good handle of everyone elses, when our economy has a wobble (which will be massive when it happens) other countries, friends and foes will attack our currency and we will need to protect its value by giving interest

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beardface said:

It wasn't as bad as it could've been. Hence why BoE and the treasury has very little appetite for anything which may instigate a 2.0 version. I think the highest rate rise we'll see will be .5 to 1%. Enough to slow inflation a little, but not enough to cause any short term panic.

In reality though interest rates should be nearer 5% to get society back into a saving rather than constant spending position and allow more people to afford house deposits.

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kiwi pom said:

I'd quite like to see slightly higher rates. I don't want to see genuine hard working people lose their homes because of it but it would be nice to see some of these "money's never been cheaper, you're an idiot if you're not borrowing all you can" people sweat a bit.

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beardface said:

People talk about how 2008 should of been worse, the great reset etc.

The reality is if the bubble burst this time it would be cataclysmic in proportions and would likely bankrupt the country along with everyone in it. And this wouldn't just be a UK issue.....

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beardface said:

Agreed. The biggest issue for house buyers in the UK, in particular first time buyers, is a spend economy. Most people under the age of 30 don't have a saver mentality. This is made worse by low interest rates reducing saver appetite, along with cheap finance, credit and loans allowing people to spend beyond their means.

People talk about how 2008 should of been worse, the great reset etc. The reality is if the bubble burst this time it would be cataclysmic in proportions and would likely bankrupt the country along with everyone in it. And this wouldn't just be a UK issue.....

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beardface said:

Agreed. The biggest issue for house buyers in the UK, in particular first time buyers, is a spend economy. Most people under the age of 30 don't have a saver mentality. This is made worse by low interest rates reducing saver appetite, along with cheap finance, credit and loans allowing people to spend beyond their means.

People talk about how 2008 should of been worse, the great reset etc. The reality is if the bubble burst this time it would be cataclysmic in proportions and would likely bankrupt the country along with everyone in it. And this wouldn't just be a UK issue.....

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oil barron said:

Nice story. But it’s not true. Private debt is considerably lower than 2008.

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ollie989898 said:

We have talked about this before.

The USA owes money to investors. A lot of these will be American people or companies who have bought government bonds as they see them as safe and a worthwhile investment. I can't say I blame them- the USA is a pretty strong economy and it seems to have been on the boil more often than not in the last 10 years.


Look at it like this:

I'm the Ollie9899898 government and I write an IOU to an investor and borrow £1000.

I then spend that £1000 and buy something the Ollie989898 country needs. (Transaction number 1).

The person who just took the £1000 off me needs his car repaired. He spends £1000 doing it and just so happens to have recently been paid £1000 (by me). (Transaction number 2).

The garage take the £1000 in payment for fixing the earlier guy's car. It pays the £1000 as wages to some of it's workforce this week. (Transaction number 3).

The workers, each pocketing £250 (for example) all go out and spend it on their shopping, a bit of diesel and a good knees up and Saturday night. (Transaction number 4).


Now, the government originally borrowed £1000 but since then, a total of £4000 of business has occurred using that same money.

And guess what? The government is levying a little bit of tax on every single pound of that £4000 and all the Ollie989898 government needs to do is earn enough tax back on that £4000 to repay the interest on the original £1000.


Now ask yourself- which is higher today? The value of the taxation that will be attached to £4000 of varied business or the interest payments on £1000?

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cows sh#t me to tears said:

Dare I say it. But in times of world crisis. War seems to galvanize and fix economies in the long term. The trouble at the moment with trying to control inflation is that regardless of the country trying, its global inflation. In the main caused by........China. They seem to control the sea freight and container shortage. (Freight rates have gone up 6 fold for Australian imports/ exports.). They control the vast majority of both fertilizer and chemical production. Both of which are being cut back significantly due (allegedly) to the "winter Olympics " and trying to clean up the air in Beijing by limiting factory output by cutting back on electricity.
My gut feeling? Convenient excuse to do what their bioweapon failed to do and bring down the world economy to replace the US as top dog, then look out Taiwan and whomever else they take a fancy too...(Tibet, Vietnam.........)

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Will 1594 said:

So where do you see house prices going ,
its a ferocious market round here at minute ,
a run down 3 bed semi farm cottage with about half acre and an old nissen hut , went on on monday 325000 , wife booked a viewing for the tuesday morning , got an email monday teatime , they had had two viewings that afternoon ,and one offered £50 k over asking price ,
think in 12 months when the momentum settles ,from the last 18 months of covid , things will be hopefully different ,might be wrong , hopefully it will crash

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Will 1594 said:

So where do you see house prices going ,
its a ferocious market round here at minute ,
a run down 3 bed semi farm cottage with about half acre and an old nissen hut , went on on monday 325000 , wife booked a viewing for the tuesday morning , got an email monday teatime , they had had two viewings that afternoon ,and one offered £50 k over asking price ,
think in 12 months when the momentum settles ,from the last 18 months of covid , things will be hopefully different ,might be wrong , hopefully it will crash

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beardface said:

It wasn't as bad as it could've been. Hence why BoE and the treasury has very little appetite for anything which may instigate a 2.0 version. I think the highest rate rise we'll see will be .5 to 1%. Enough to slow inflation a little, but not enough to cause any short term panic.

In reality though interest rates should be nearer 5% to get society back into a saving rather than constant spending position and allow more people to afford house deposits.

Click to expand...

Still Farming said:

Lots can't afford their mortgages now at all time record low rates or goodness knows if only go up a couple of points?
The cheapest Mortgages in the nineties were around 14% and we managed???

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Steevo said:

They print it, then lend it to themselves.

Genius idea hey! Why haven’t we all thought to do the same…?!

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