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EA Today reporting interest rate rise will crash market


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spunko
On 16/05/2021 at 07:04, Lightscribe said:

Soooo hyperinflation then and the monetary system collapses anyway with UBI and devaluation of currency to toilet paper which would cause instability and chaos.

They know up the top where this is all heading and have done for a long time. Wouldn’t it be more preferable to make the transition in a controlled manner?
At first one bread winner was required to run a household. Then both parents needed to work (more consumer ability, transport, coffee shops, dry cleaners etc). Then when that was tapped out, cheap labour was imported (even more consumer demand, HMO housing etc) 

All of the above continues on the basis of capitalism so long as the population expands. Capitalism is also finite, resources eventually run out, profitability margins become less and less (shrinkflation and inflation). This also inflates assets which takes the wealth to the top keeping it away from the bottom (i.e millennials, zoomers). This in turn means the birth rate drops as the cost of living is much more expensive and people are only able to settle down much later in life and have one child if any. Meanwhile that issue is masked by encouraging population in the non-productive through benefits I.e two children limit. Those children not having access to higher quality education and opportunities means we get less suitable candidates for skilled positions (i.e STEM etc) so have to import more and more our skilled labour. 

But overall in the developed nations across the world we are now seeing population decline. We’ve had a 40 year cycle of prolonged disinflation, but that has now ended into an inflationary inflection point.

The economic result of all of the above is economic collapse and UBI whichever way. So on that basis if they know the long term destination (i.e great reset) wouldn’t they be preparing for that now? 

Once interest rates start to rise, even to the levels of a decade ago in line with inflation, it would send the over leveraged (the wealth in the middle towards the top has been seeking a return in a zero interest rate environment) bust. Debt forgiveness for asset forfeiture. All that now belongs to the government to use in their new UBI utopia. The biggest wealth redistribution in history.

A brilliant post, I have featured it.

Can you please expand on how you envisage "Debt forgiveness for asset forfeiture" though? Interested how this will pan out.

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Green Devil
On 16/05/2021 at 07:04, Lightscribe said:

Soooo hyperinflation then and the monetary system collapses anyway with UBI and devaluation of currency to toilet paper which would cause instability and chaos.

They know up the top where this is all heading and have done for a long time. Wouldn’t it be more preferable to make the transition in a controlled manner?
At first one bread winner was required to run a household. Then both parents needed to work (more consumer ability, transport, coffee shops, dry cleaners etc). Then when that was tapped out, cheap labour was imported (even more consumer demand, HMO housing etc) 

All of the above continues on the basis of capitalism so long as the population expands. Capitalism is also finite, resources eventually run out, profitability margins become less and less (shrinkflation and inflation). This also inflates assets which takes the wealth to the top keeping it away from the bottom (i.e millennials, zoomers). This in turn means the birth rate drops as the cost of living is much more expensive and people are only able to settle down much later in life and have one child if any. Meanwhile that issue is masked by encouraging population in the non-productive through benefits I.e two children limit. Those children not having access to higher quality education and opportunities means we get less suitable candidates for skilled positions (i.e STEM etc) so have to import more and more our skilled labour. 

But overall in the developed nations across the world we are now seeing population decline. We’ve had a 40 year cycle of prolonged disinflation, but that has now ended into an inflationary inflection point.

The economic result of all of the above is economic collapse and UBI whichever way. So on that basis if they know the long term destination (i.e great reset) wouldn’t they be preparing for that now? 

Once interest rates start to rise, even to the levels of a decade ago in line with inflation, it would send the over leveraged (the wealth in the middle towards the top has been seeking a return in a zero interest rate environment) bust. Debt forgiveness for asset forfeiture. All that now belongs to the government to use in their new UBI utopia. The biggest wealth redistribution in history.

Can you elaborate on that? Are you saying the middle are going to go bust? Surely in this scenario assets, ie houses, stocks shares crypto continue to rocket? Surely only the poor lose out, the rent, own few assets, meanwhile everyone gets a UBI benefit added to their income to pay for living.

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Chewing Grass
5 minutes ago, Green Devil said:

Can you elaborate on that? Are you saying the middle are going to go bust? Surely in this scenario assets, ie houses, stocks shares crypto continue to rocket? Surely only the poor lose out, the rent, own few assets, meanwhile everyone gets a UBI benefit added to their income to pay for living.

All UBI would basically mean is zero tax allowances with those receiving money and working paying directly for those who don't.

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At one end of UBI, there will those who earn nothing and pay no income tax. Those at the other end will pay much more income than their UBI payment. In the the middle there will be a balance point where UBI paid equals income tax received.

We sort of have that now. Some families are paying income tax and receiving bennies.

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spygirl
1 hour ago, HousePriceMania said:

 

image.png.79c48fc892128de8fb3797810c75d4bd.png

 

:ph34r:

There two things -

One, APRs on low deposits have gone up.

Two, banks are swerving borrowers without 20%. Any blemish or niggle - computer says No.

 

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On 17/05/2021 at 14:47, Chewing Grass said:

All UBI would basically mean is zero tax allowances with those receiving money and working paying directly for those who don't.

Hopefully, the introduction of UBI will be a trigger for simplifying the tax system altogether, rather than having a bunch of separate, rather arbitrary allowances for income from labour, capital gains, bank interest, employers' NI, employees' NI, umpteen tax credits etc.

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stokiescum
On 17/05/2021 at 11:34, spunko said:

A brilliant post, I have featured it.

Can you please expand on how you envisage "Debt forgiveness for asset forfeiture" though? Interested how this will pan out.

The country needs less people not more 

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Hancock
22 minutes ago, stokiescum said:

The country needs less people not more 

Id say getting rid of 10000 posh cunts in London, along with the another 10000 of the similar breed scattered around the country, would solve most the problems in the country.

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sancho panza
Posted (edited)
On 16/05/2021 at 14:32, BurntBread said:

Economics is too complex for me to grasp more than a few of the concepts, but I don't think that printing holds down rates unless the QE extends to all corporate debt and mortgages. Any debt issuance that isn't immediately bought by the government will have to promise monstrous yield in order to get any buyers. In other words, the market will set high interest rates in this scenario, and the only way for the government to counter that is to be the entire bond market. Even if the government decides to do that (and there will be some people in at least the civil service who are not complete loonies, so that may be harder to agree than you imagine), then the pound collapses. That's not an abstract thing: it means oil and oil products, for example, become massively more expensive compared to wages here, so people ultimately cannot afford to drive or heat their homes. Unless exports are banned, the same applies to anything that can be traded internationally. Food, for example, disappears from the supermarket shelves. It will be like the potato famine.

We've had 40 years of ramping debt spending without the currency crashing.The elite have been treated royally.Can't do that forever.

Hyperinflation is genereally a political choice by those who have no other-Weimar Germany,Venezuela etc.For everyone else it's high inflation until the politcal class realise their end is nigh if the let it get worse.

On 16/05/2021 at 16:49, spygirl said:

You are confusing amount of currency with wealth.

You need to think of QE as cutting more n more slices in a cake.

Cutting a cake into 6 rather than 4slices does not make the cake bigger.

UK is at a point where, if the BoE doesn't do some magic and risk a default, that the UK will slip into an emerging country status.

turkey-interest-rate@2x.png?s=tuibon&v=2

UK is at a point where, if you need to worry if you have an unfunded UK public pension.

The smackhead feels wealthier when he turns two ounces of gear into four with two ounces of rat poison.

doesn't end well for the end user in so many ways

Edited by sancho panza
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