Credit deflation and the reflation cycle to come (part 6)

[crashmonitor]

Another video from Maneco64, central bankers, the debasement of currency to pay Government debt ( ie. the debt created to pay Bennies and keep the moaning masses happy), the forthcoming House price crash. And Brexit is a convenient scapegoat for the globalist left he reckons 

 

 

Edited June 18, 2023 by crashmonitor

[DurhamBorn]

2 hours ago, Axeman123 said:

(my strike through)

It is interesting that the BoE were only at 2.25% in October 2022 when Truss resigned, up until that point BoE interest rate hikes had been largely symbolic IMO. One of the biggest criticisms of Truss' time in no10 was that interest rates would now have to rise much higher than previously expected. The BoE had been doing 25bps rises and only reached 1.25% in June that year! The first 50bps rise to 1.75% was in Augist and the second in September. Post Truss the BoE piled on a 75bps rise (which shocked everyone) in Novemeber - her fall from grace enabled a big catch up with BoE able to point the finger. Even the uncertainty of the Tory leadership contest over the summer gave the BoE cover to step up to 50bps increments.

IMO Hunt et al were in the MMT camp, ie print to infinity and use higher taxes as the brake on inflation if required rather than interest rates. MMT must have been a seductive vision of the future for politicians, unlimited spending and the big challenge is how to distribute it (it would be like a teenage boy imagining how he would rota five supermodel girlfriends at once!); Permanenet Blairism-on-steroids would be the innevitable outcome. Once the national debt was at the level it reached post COVID IMO the establishment were all-in on MMT, and this plus the loss of the fantasy of unlimited spending was likely a big part of the resistance to Trussism.

Agree,thats why they froze allowances etc while still ramping up welfare.They dont understand the massive macro changes,mostly around energy and food.The consumption of resources we dont produce by people who dont produce anything is what is causing this inflation in the UK and it is now self feeding.Without massive state spending cuts they will have to take more and more tax,huge amounts.There is no way the economy can fix itself under present policies.They are trying to create a no borders world of drones on welfare,but the EMs have decided they wont be paying for it.

Notice massive demand for mortgage bailouts now.If they do,collapse will come quickly.Their whole world view is destroying itself.I dont say this lightly,but their crimes are so bad i think they should be executed.The prisoners on death row are more decent than this group of westernn polos and elite.

 

[Nomad]

Oh dear, https://www.bbc.co.uk/news/business-65922072

[Errol]

Not sure what the grounds for such help are.

[reformed nice guy]

2 hours ago, Lightscribe said:

Oh dear… what a plonker.

 

https://www.telegraph.co.uk/personal-banking/mortgages/mortgage-bomb-middle-class-britain/#:~:text=Annual mortgage costs have already,live in more expensive homes.
 

https://12ft.io/proxy?q=https%3A%2F%2Fwww.telegraph.co.uk%2Fpersonal-banking%2Fmortgages%2Fmortgage-bomb-middle-class-britain%2F%23%3A~%3Atext%3DAnnual%20mortgage%20costs%20have%20already%2Clive%20in%20more%20expensive%20homes
 

London and the south fooked.

"middle class"

"Fraser’s monthly mortgage payments have gone up from £8,300 a month to £20,000."

“We made enquiries into how much money we’d need to slice off our mortgage to keep our monthly repayments in a similar ballpark and were told £100,000, so we’ve spent the past six months trying to realise that money,” says Thorpe. “We’ve had to cash in my husband’s shares – effectively our pension pot – and get loans from family members."

They really don't know what middle class is if they are talking multi million mortgages and getting £100k to lower their mortgage

[Axeman123]

32 minutes ago, Nomad said:

Oh dear, https://www.bbc.co.uk/news/business-65922072

Doesn't worry me, its all just weasel words and no action IMO.

Quote

Help for people struggling with their mortgages is being kept "under review", cabinet minister Michael Gove has said. But any financial assistance would be a decision for the Treasury, he told Laura Kuennsberg. He also warned any help similar to Covid or energy bill schemes risked driving up interest rates further. The BBC understands that the Treasury has no current plans to give mortgage relief.

Linked within the article is this from the Sunday Times today:

Jeremy Hunt rules out Covid-style handouts for struggling homeowners

it is a one-two pass-the-buck job IMO.

[King Penda]

3 minutes ago, Axeman123 said:

Doesn't worry me, its all just weasel words and no action IMO.

Linked within the article is this from the Sunday Times today:

Jeremy Hunt rules out Covid-style handouts for struggling homeowners

it is a one-two pass-the-buck job IMO.

Fucking fantastic 

[montecristo]

45 minutes ago, Nomad said:

Oh dear, https://www.bbc.co.uk/news/business-65922072

Split in the camp?

 

[BurntBread]

47 minutes ago, DurhamBorn said:

Notice massive demand for mortgage bailouts now. If they do, collapse will come quickly. Their whole world view is destroying itself.

Let us hope for that, then. A slow collapse surely carries the greater risk that everything we own and everything we care about in our culture will be lost? If that is the way we are going then, "let all the poison that lurks in the mud, hatch out."

[King Penda]

5 minutes ago, montecristo said:

Split in the camp?

 

A lesson needs to be learnt by the public and it’s simply the fact that we can’t expect to be bailed out constantly.we also need to learn to fear debt again.these people were also stress tested against interest rates rises.an increase of .25% will also get me around £9.50 extra in interest a month .

Edited June 18, 2023 by King Penda

[Wight Flight]

51 minutes ago, Nomad said:

Oh dear, https://www.bbc.co.uk/news/business-65922072

WTAF?

Quote

David Husbands, 43, a property valuer from Chester-le-Street in County Durham, said his rising mortgage payments are "crippling" him.

His payments have gone from about £300 per month in early 2022 to more than £600.

"Because interest rates have gone sky high I'm lucky if I'm left with £100 to live off at the end of each month," he said. "I've had to take on extra casual work elsewhere."

He is finding the situation "exhausting" and "very stressful", finishing work at 5:30pm, then doing gigs as a casual DJ until midnight.

 

[Chewing Grass]

12 minutes ago, Axeman123 said:

Doesn't worry me, its all just weasel words and no action IMO.

Linked within the article is this from the Sunday Times today:

Jeremy Hunt rules out Covid-style handouts for struggling homeowners

it is a one-two pass-the-buck job IMO.

Nobody needs mortgage relief, they just need to sell up and get something they can afford. If everyone does that the 'trickle down effect' will solve the problem.

Too many people have had it too good on easy credit for too long with the side effects being that a minority have gotten a very easy life out of exploiting them.

I look round where I live and their are plenty of thirtysomethings living well beyond their means on credit.

[King Penda]

6 minutes ago, Chewing Grass said:

Nobody needs mortgage relief, they just need to sell up and get something they can afford. If everyone does that the 'trickle down effect' will solve the problem.

Too many people have had it too good on easy credit for too long with the side effects being that a minority have gotten a very easy life out of exploiting them.

I look round where I live and their are plenty of thirtysomethings living well beyond their means on credit.

Told my mate in Telford to knock everything he has in the bank off his interest only morgage except for 1k to live on.he won’t he wants 10k for emergency’s 

Edited June 18, 2023 by King Penda

[Animal Spirits]

19 minutes ago, Axeman123 said:

Doesn't worry me, its all just weasel words and no action IMO.

Linked within the article is this from the Sunday Times today:

Jeremy Hunt rules out Covid-style handouts for struggling homeowners

it is a one-two pass-the-buck job IMO.

Archive link:

https://archive.ph/ijSPU

[montecristo]

6 minutes ago, King Penda said:

A lesson needs to be learnt by the public and it’s simply the fact that we can’t expect to be bailed out constantly.we also need to learn to fear debt again.these people were also stress tested against interest rates rises.an increase of .25% will also get me around £9.50 extra in interest a month .

Yep,  lets see as there will be a media onslaught now. Just like there was about hiking benefits in line with inflation.

[King Penda]

Just now, montecristo said:

Yep,  lets see as there will be a media onslaught now. Just like there was about hiking benefits in line with inflation.

Well next year could see another 8% which will mean an identical rise in minimum wage

[JohnnyB]

3 hours ago, Lightscribe said:

Oh dear… what a plonker.

 

https://www.telegraph.co.uk/personal-banking/mortgages/mortgage-bomb-middle-class-britain/#:~:text=Annual mortgage costs have already,live in more expensive homes.
 

https://12ft.io/proxy?q=https%3A%2F%2Fwww.telegraph.co.uk%2Fpersonal-banking%2Fmortgages%2Fmortgage-bomb-middle-class-britain%2F%23%3A~%3Atext%3DAnnual%20mortgage%20costs%20have%20already%2Clive%20in%20more%20expensive%20homes
 

London and the south fooked.

Thanks for the text

 

Also haha what a cunt! Decided working in 'Finance' made him an expert and superior to the plebs.

[Axeman123]

4 minutes ago, montecristo said:

Yep,  lets see as there will be a media onslaught now. Just like there was about hiking benefits in line with inflation.

It will be interesting if Labour pile in or not. Sure they could win the GE next November very easily be promising unlimited handouts, but would they actually be allowed to do it and crash the pound/economy in the process? I suspect they will hedge their bets by carping about the need for govt to do "something" but not get specific.

[Bobthebuilder]

12 minutes ago, Chewing Grass said:

Nobody needs mortgage relief, they just need to sell up and get something they can afford. If everyone does that the 'trickle down effect' will solve the problem.

Too many people have had it too good on easy credit for too long with the side effects being that a minority have gotten a very easy life out of exploiting them.

I look round where I live and their are plenty of thirtysomethings living well beyond their means on credit.

I am just amazed at the consumption I see in a lot of people, especially the young 30 to 40 somethings. Multiple houses, multi big cars, butane guzzling BBQs smoking lumps of meat for 12 hours at a time, driving here there and everywhere, petrol mowers, solid granite patios, hot tubs, the list goes on and on. They then ask me what to invest in, but they want the investment vehicle to be ethical. while they plunder resources like an Easter Island resident.

Makes no sense to me at all, big lessons coming for many I think.

I'm coming to the conclusion house prices are seriously fucked, and the mother of all crashes is going to change the hive mind of the public big style, maybe that's what we need for any change to happen.

[PETR4]

Some youtube videos I watched to share with the thread:

22m 50s. TLDW: The high life of a Youtube influencer in Dubai. All credit to anyone who pull off being a Youtube influencer. I think this is a good example of a new economy job. They didn't exist when I was young!

14m 58s TLDW: A selection of examples of why South Africa is in an economic mess. Notably doesn't have a remedying prognosis

 

Also 14m 58s TLDW: Why techonology and those who own it will be the next Superpower.

 

[Chewing Grass]

@Lightscribe looked at the chart with Havering ate the top of the pile with 8% bad mortgages and wondered it it was the New Build Capital of Greater London.

[JMD]

12 hours ago, Bien Pensant said:

Literally Atlas Shrugged.

Yes, and in regard to those quiet quiters you reference, my own shoulders begun to twitch during Convid.

Of course very much not implying I'm an Atlas - at best perhaps more like a Hephaestus - the ugly and crippled god of artisans and craftsmen (interestingly, unlike most of the Greek gods, he remained honourable and wise)...  In fact, sounds a prime candidate for adoption by this thread and maybe should become our Dosbod Deity !?!

Edited June 18, 2023 by JMD

[Kendo]

1 hour ago, DurhamBorn said:

Notice massive demand for mortgage bailouts now.If they do,collapse will come quickly.Their whole world view is destroying itself.

Not quoting the relevant bit, but suffice to say, as a Springsteen fan, the last verse of his 2012 song Jack of all Trades just came to mind.

Lyrics here if the video doesn’t appear: https://www.azlyrics.com/lyrics/brucespringsteen/jackofalltrades.html

[DurhamBorn]

 

50 minutes ago, Wight Flight said:

WTAF?

 

Its the BBC so the "struggling" has to be a couple of arse jockeys.People who borrowed years ago were gifted ridiculous rates and should of steadily paid off the mortgage.Most simply spent the money as we know.Market economies need to be left alone to destroy people who dont plan.

 

[Yadda yadda yadda]

28 minutes ago, Chewing Grass said:

@Lightscribe looked at the chart with Havering ate the top of the pile with 8% bad mortgages and wondered it it was the New Build Capital of Greater London.

No. It is the shithole capital of London. The new build shithole capital of London is probably Croydon. Possibly Stratford, which is I think Newham and one in from Havering.