#interestrates
US interest rates expected to hold until 2024 amid economic uncertainty https://noah-news.com/gb/en/economy/2023/12/06/us-interest-rates-expected-to-hold-until--amid-economic-uncertainty #USeconomy #FederalReserve #interestrates
Australia's per capita recession deepens as output per person shrinks over past year
By Michael Janda
Australia's economy barely grew over the three months to September 30, with economic output going backwards by half a per cent per person.
https://www.abc.net.au/news/2023-12-06/gdp-september-quarter-2023-abs/103194724
#EconomicGrowth #EconomicIndicator #EconomicTrends #InterestRates #MoneyandMonetaryPolicy #Economy #MichaelJanda
Bitcoin ETFs Got BTC Surging, but Tumbling Interest Rates Have Helped, Too - The abrupt recent turn in expectations for Federal Reserve monetary policy has helped ass... - https://www.coindesk.com/markets/2023/12/05/bitcoin-etfs-got-btc-surging-but-tumbling-interest-rates-have-helped-too/?utm_medium=referral&utm_source=rss&utm_campaign=headlines #federalreserve #interestrates #markets #bitcoin #news #btc
Homeowners get a Christmas interest rate reprieve, but the next two months will be crucial
By Peter Martin
The mathematics of falling inflation suggest further rate rises are unlikely but if inflation accelerates over the holiday season, the Reserve Bank probably will reconsider, writes Peter Martin.
#EconomicTrends #Economy #Inflation #CostofLiving #InterestRates #RetailIndustry #PeterMartin
Greens accuse Labor and Coalition of ‘race to the bottom’ over migration bill – as it happened – Source: www.theguardian.com https://ciso2ciso.com/greens-accuse-labor-and-coalition-of-race-to-the-bottom-over-migration-bill-as-it-happened-source-www-theguardian-com/ #rssfeedpostgeneratorecho #Dataandcomputersecurity #Australianpolitics #Australianeconomy #CommonwealthGames #CyberSecurityNews #AnthonyAlbanese #Australianews #Interestrates #TheGuardianUK #environment #Technology #business #Banking
Reserve Bank of Australia holds interest rates steady amidst economic uncertainty https://noah-news.com/gb/en/economy/2023/12/05/reserve-bank-of-australia-holds-interest-rates-steady-amidst-economic-uncertainty #RBA #interestrates #Australianeconomy
RBA delivers pre-Christmas interest rate reprieve
By Michael Janda
The Reserve Bank has left millions of borrowers a little more relaxed for their summer holidays, keeping interest rates on hold.
https://www.abc.net.au/news/2023-12-05/interest-rates-on-hold-until-february-as-rba-pauses/103190584
#InterestRates #MoneyandMonetaryPolicy #EconomicOrganisation #Economy #EconomicTrends #MichaelJanda
RBA delivers pre-Christmas interest rate reprieve
By Michael Janda
The Reserve Bank has left millions of borrowers a little more relaxed for their summer holidays, keeping interest rates on hold.
https://www.abc.net.au/news/2023-12-05/interest-rates-on-hold-until-february-as-rba-pauses/103190584
#InterestRates #MoneyandMonetaryPolicy #EconomicOrganisation #Economy #EconomicTrends #MichaelJanda
High interest rates are making it harder to get a home loan. Data shows more people are faking it to get approved
By Nassim Khadem
More people looking to break into the property market are lying on their loan applications in desperation to try to secure a home loan, according to new data. The struggle to refinance is also getting harder with more interest rate rises in 2024 possible.
#InterestRates #BusinessEconomicsandFinance #Businesses #EconomicIndicator #MoneyandMonetaryPolicy #PropertyPrices #ConsumerFinance #ConsumerProtection #FederalGovernment #HousingPolicy #MoneyLaundering #Inflation #Banking #EconomicTrends #BusinessandIndustryRegulation #NassimKhadem
Bitcoin and gold surge as investors anticipate rate cuts https://noah-news.com/gb/en/business/2023/12/04/bitcoin-and-gold-surge-as-investors-anticipate-rate-cuts #Bitcoin #gold #interestrates
You've heard about JobKeeper, now we need HomeKeeper
Applying the logic of JobKeeper to create a HomeKeeper program could save a lot of working-class mortgagors from losing their homes, writes Chris Wallace.
#BusinessEconomicsandFinance #InterestRates #HousingPolicy #HouseandHome #CostofLiving #EpidemicsandPandemics #FederalGovernment #Banking
JPMorgan CEO Jamie Dimon Warns of Higher Interest Rates and Recession — ‘I’m Not Trying to Scare People’ - JPMorgan Chase CEO Jamie Dimon has warned that something bad may happen in the U.S... - https://news.bitcoin.com/jpmorgan-ceo-jamie-dimon-warns-of-higher-interest-rates-and-recession-im-not-trying-to-scare-people/ #interestrates #jamiedimon #economics #recession #useconomy #jpmorgan #economy
Parsing data with care
Inflation is in the air
Signals of rate rise
#fed #inflation #interestrates #haiku #poetry
https://www.reuters.com/markets/feds-barkin-wants-rate-hike-option-no-talk-rate-cuts-2023-11-29/
Passing on higher prices risks making inflation worse, but Gerry Harvey says that's the cost of doing business
By Kate Ainsworth
Billionaire retail boss Gerry Harvey says businesses are justified in passing on cost increases through higher prices to maintain their profit margins and prevent bankruptcies, despite the RBA warning it could lead to higher inflation.
#EconomicTrends #RetailIndustry #CompanyNews #ConsumerFinance #MoneyandMonetaryPolicy #Inflation #InterestRates #Tax #LabourMarket #Industry #KateAinsworth
As economy's health we tend to,
We look to engineering's lend
To find a soft landing's way
That will set us all astray
For raising rates now looks increasingly like an urge to end
The continuing #costoflivingcrisis, high #interestrates, #inflation & other social crises across the UK are taking their toll on #business start-ups.
If (and for some of your this may be a big 'if') the willingness to start a new business is a key indicator of the private sector's judgement on the future economic environment, then the switch to more #businesses failing than being started in 2022, marks a further decline in the UK's economic prospects!
Inflation dips more than economists expect in October
By Michael Janda and Gareth Hutchens
Inflation falls faster than expected in October, taking some pressure off the RBA to back up this month's interest rate rise with another before Christmas.
https://www.abc.net.au/news/2023-11-29/inflation-consumer-price-indicator-abs-october-2023/103164722
#Inflation #EconomicTrends #MoneyandMonetaryPolicy #InterestRates #Economy #MichaelJanda #GarethHutchens
Is the record level of migration fuelling inflation and the rental crisis?
By Samuel Yang
The record-breaking level of migration triggers a public debate around its impact on Australia's inflation problem and a full-blown rental crisis.
#Inflation #RentalHousing #ImmigrationPolicy #EconomicTrends #MoneyandMonetaryPolicy #HousingConstructionIndustry #ConsumerFinance #HousingPolicy #InterestRates #FederalGovernment #Immigration #SamuelYang
The government is about to try to remove a crucial veto power it has over the Reserve Bank. It may not be so wise
By Peter Martin
Many of us don't trust politicians, but surely politicians ought to trust politicians? History shows why they might one day need to overturn a Reserve Bank decision, writes Peter Martin.
#EconomicTrends #Economy #FederalGovernment #Banking #EconomicIndicator #InterestRates #MoneyandMonetaryPolicy #PeterMartin
Bitcoin Pushes Above $37.7K on Dovish Comments From Fed's Waller - The recently hawkish Fed governor said rate cuts could be on the agenda if inflation cont... - https://www.coindesk.com/markets/2023/11/28/bitcoin-pushes-above-377k-on-dovish-comments-from-feds-waller/?utm_medium=referral&utm_source=rss&utm_campaign=headlines #federalreserve #interestrates #markets #bitcoin #news #btc
Global News BC: Surging cost of living leading to ‘inflation isolation’ in B.C.: Poll https://globalnews.ca/news/10117901/cost-of-living-mental-health-isolation-b-c/ #globalnews #britishcolumbia #news #InterestRates #CostofLiving #inflation #Economy #Debt
"But because raising taxes is a taboo subject in NZ they just left the Reserve Bank to whack up interest rates."
Now, the NatACTs are going to cut taxes, and probably borrow to do it. Which will drive inflation back up again (it peaked a while back), and keep interest rates higher for longer 🤦♂️
The Fed may be compelled to slash interest rates in half next year to stave off a looming recession, according to a recent report by Swiss multinational investment bank UBS.
North American's: I can't believe interest rates soared past 4%! This is incredibly high! How will anyone survive???
Today's headline about Turkey: "Turkey’s central bank hikes interest rate by 500 basis points to 40%, well above expectations"
🇹🇷 Turkey's central bank announces a massive 5-point interest rate hike, raising the main rate to an unprecedented 40% - the highest in 20 years. A bold measure in response to economic turbulence. #TurkeyEconomy #InterestRates
'Working harder for a whole lot less': Retailers are expecting record Black Friday sales, but a weaker Christmas
By Nassim Khadem and David Chau
Black Friday and Cyber Monday sales are expected to account for more than a quarter of all holiday purchases this year. But economists are predicting a "penny-pinching" Christmas as interest rates stay higher for longer.
#BusinessEconomicsandFinance #RetailIndustry #OnlineShopping #ShoppingMall #ShoppingDistrictandHighStreet #HolidayShopping #InterestRates #EconomicTrends #MoneyandMonetaryPolicy #Christmas #NassimKhadem #DavidChau
The Fed may be compelled to slash interest rates in half next year to stave off a looming recession, according to a recent report by Swiss multinational investment bank UBS.
In its 2024-2026 outlook report published on Nov. 20, UBS said the U.S. economy is in for a shocker next year as consumers are running through the last shreds of post-pandemic savings.
“The sources of inflation are disappearing quickly,” Wilmington Trust’s chief economist, Luke Tilley, said.
With rate-hike odds disappearing, traders have placed meaningful bets that the first rate cut could occur in March. According to CME Group’s FedWatch Tool, there’s a 29% probability of that happening.
#Australia #RBA #InterestRates
Alarming signs that some businesses are passing higher inflation costs on to Australian consumers convinced the Reserve Bank that another interest rate rise was needed to dampen inflation expectations.
#AndrewBailey of the Bank of England, sado-Monetarist in chief (quoted in the FT) on the prospects for #interestrates:
'Let me be very clear: it is far too early to be thinking about rate cuts''!
Just so you know: there's a recession coming & Bailiey and his gang have engineered it; its the price we have to pay for their ideological commitment(s).
70% of BTC dormant for a year — 5 things to know in Bitcoin this week - Bitcoin faces a slow grind after earlier brisk BTC price gains, b... - https://cointelegraph.com/news/70-btc-dormant-year-5-things-know-bitcoin-this-week #federalreserve #interestrates #btcprice #bitcoin #stocks #mining
RT by @EUintheUS: WE will GO LIVE TODAY at 1pm ET!
Webinar | "Quarterly #EU #EconomicUpdate for 2024 - Converging on a #SoftLanding"
Topics incl:
#European vs #GlobalGrowth, #InterestRates, #Inflation, #BudgetDeficits, #SovereignDebt, #EnergyPrices
RSVP: https://eaccny.com/events/?event_id=1268
🐦🔗: https://nitter.cz/EACCNY/status/1725520164047728709#m
[2023-11-17 14:24 UTC]
Labor market strong
Inflation retreating fast
Jobless claims increase
#labormarket #joblessclaims #inflation #interestrates #haiku #poetry
RT by @EUintheUS: LAST CHANCE!
On Nov 17, join us for our webinar "Quarterly #EU #EconomicUpdate for 2024 - Converging on a #SoftLanding" Topics: #European vs #GlobalGrowth, #InterestRates, #Inflation, #BudgetDeficits, #SovereignDebt, #EnergyPrices
RSVP: https://eaccny.com/events/?event_id=1268
🐦🔗: https://nitter.cz/EACCNY/status/1725172584851927310#m
[2023-11-16 15:22 UTC]
📈 Credit card debt in America has hit a staggering $1.03 trillion! But it's not just what you borrow – it's what it costs you! 💰
#CreditCardDebt #HiddenCosts #InterestRates #DebtManagement #FinancialAwareness #CreditRepair #SmartSpending
#Insolvencies jump 18% in #England and #Wales as high #InterestRates hit firms – business live
https://www.theguardian.com/business/live/2023/nov/14/uk-real-wages-inflation-vacancies-fall-insolvencies-us-inflation-business-live
The #ONS thinks (given their data problems its best I say 'thinks') that #wage rises have been around 7.7% in Q.3/2023 & this might (might!) give the BoE some pause for thought before it increases #interestrates again... but if you're hoping that such figure might prompt the start of lowering interest rates, you haven't got the measure of the sado-monetarists in Threadneedle St.
Not until a recession is properly here & #workers impoverishment is (in tier views) established will policy change!
This is a really nice summary of 3 or 4 really convincing "conspiracy theories" that I have watched over the last decade or two.
#conspiracy #anarchy #love #peace #racism #violence #wwii #wwi #war #media #banking #centralbank #federalreserve #civilwar #jpmorgan #interestrates #market #economy #industrial #war
Fed Chair Powell’s Hawkish Tone Rattles Markets as Inflation Concerns Persist - Amid an uncertain economic landscape, Federal Reserve Chair Jerome Powell’s recent... - https://news.bitcoin.com/fed-chair-powells-hawkish-tone-rattles-markets-as-inflation-concerns-persist/ #federalreserve #interestrates #uscentralbank #jeromepowell #economics #fedchair
Record #population growth a double-edged sword for #inflation, according to #RBA analysis #auspol #interestrates
Evoking Joseph Schumpeter the FT expects a wave of #business bankruptcies driven by high #interestrates, low economic growth & removal of #Covid-era business support measures...
As always this 'creative destruction' will involve investors losing money & #workers losing their jobs.
However, the former are usually pretty well cushioned having had the ability to spread their finical risks; employees have little such chance.
States' safety nets will be even more important in the next year or so!
And it just kept on going
"The S&P 500 scored its seventh straight day in the green, with the Nasdaq recording its eighth straight advance, the longest such streak for each index in two years."
https://www.reuters.com/markets/us/futures-dip-rate-cut-optimism-wanes-more-fed-speakers-tap-2023-11-07/
—
#fed #employment #InterestRates
RBA: "The latest reading on CPI inflation indicates that while goods price inflation has eased further, the prices of many services are continuing to rise briskly."
And why is that? Because the poorer segments of our society insists on spending more on services like power, communications, water, and repairs than is necessary, or because companies charge like wounded bulls while paying massive Executive bonuses because they know they will get away with it?
RBA: "The Board judged an increase in interest rates was warranted today to be more assured that inflation would return to target in a reasonable timeframe."
I'm sorry, but I find it hard to trust the RBA Board after their ludicrous performance during the initial COVID-19 years.
Upping the interest rate will hurt the poorest the most. That seems to be the go-to for the RBA Board, populated by people who don't have to give a second thought to how they will eat tonight or where they can sleep safely.
𝗪𝗲 𝗮𝗿𝗲 𝗻𝗼𝘁 𝗮𝗻 𝗲𝗰𝗼𝗻𝗼𝗺𝘆, 𝘄𝗲 𝗮𝗿𝗲 𝗮 𝘀𝗼𝗰𝗶𝗲𝘁𝘆. We are not num ers in a spreadsheet, we are people.
How could #Bidenomics have mitigated covid related inflation? And today's resultant higher interest rates?
@halsinger outlines the inflation fighting tools that Biden, Congress & state/local governments could have used:
https://www.levernews.com/bidenomics-failed-its-inflation-test/
Screen shot source: https://x.com/HalSinger/status/1720834771335397538?s=20
Markets expect rate cut
ECB leads central banks' way
To revive economy
"If you are living in financial stress that's not for the good of the country. That's because some incompetent people at the Bank of England have chosen to victimise you, and there's no comfort in that"
Good from @RichardJMurphy on how the Bank of England is causing the very inflation it claims to fight.
#Inflation #Recession #InterestRates #BankOfEngland
#Economics
JPMorgan CEO: Inflation May Be Stickier Than People Think, Fed May Raise Rates Further - The CEO of JPMorgan Chase, Jamie Dimon, has warned that inflation may be more pers... - https://news.bitcoin.com/jpmorgan-ceo-inflation-may-be-stickier-than-people-think-fed-may-raise-rates-further/ #interestrates #jamiedimon #economics #ratehikes #jpmorgan #economy #fed
Interest rates remain low
Markets remain uncertain too
What is in store now?
#fedreserve #interestrates #markets #haiku #poetry
https://www.politico.com/video/2023/11/01/federal-reserve-declines-to-raise-interest-rates-1125349
Of course the BoE holds #interestrates where they were/are, at 5.25%.... we're not in a recession yet, and nothing less will satisfy the sado-monetarists of the MPC.
Of course, in a year's time when things are even grimmer there will be a lot of hang-wringing in public about an unexpected (unavoidable) policy overshoot.
The MPC will retreat to their luxury flats, while the people of the UK will be figuring out whether they can have the heating on for an hour!
US #Fed pauses interest rate hikes amid rising bond yields - World Socialist Web Site
#InterestRates #InterestRateHikes #BondYields #GlobalBankingCrisis
Bitcoin beyond 35K for Christmas? Thank Jerome Powell if it happens - Led by Chairman Jerome Powell, the Federal Reserve has halted the... - https://cointelegraph.com/news/bitcoin-beyond-35k-christmas-thank-jerome-powell #interestrates #jeromepowell #bitcoin #market
Federal Reserve Leaves Rates Unchanged; Bitcoin Flat at $34.5K - Market participants will now turn to Fed Chair Jerome Powell's post-meeting press confere... - https://www.coindesk.com/markets/2023/11/01/federal-reserve-leaves-rates-unchanged-bitcoin-flat-at-345k/?utm_medium=referral&utm_source=rss&utm_campaign=headlines #federalreserve #interestrates #jeromepowell #markets #bitcoin #news
Oh interest rates, what a relief
You bring to us so much grief
The Fed's relief may come too late
But consumers' hopes mollify our fate
We cling to your promises of change
To help us out of our financial range
We hope that the Fed pays heed
And keeps our budgets unencumbered indeed
End of ‘Uptober’ targets $40K BTC price — 5 things to know in Bitcoin this week - Bitcoin holds higher BTC price levels into what looks to be a cru... - https://cointelegraph.com/news/uptober-40k-btc-price-5-things-bitcoin-this-week #btcpriceuptober #bitcoinfutures #interestrates #bitcoin #fomc #fed
The #economy’s resilience is a product of a strong #JobMarket & extra pandemic savings, which have made it possible for people to keep spending despite #inflation & rising #InterestRates. Robust govt hiring —including 214k new jobs between July & Sept — also added to overall strength. What’s particularly remarkable is that the economy grew so strongly amid the highest interest rates in >15 yrs, as the #FederalReserve tries to cool the economy down to curb inflation, which has lately been easing.
#CanPoli #CdnPoli Canada Politics Poll of the Day! #CPPotD
Do you believe we'll see another interest rate rise in the next 12 months? (This feels more like a wager than a poll 😂)
https://www.cbc.ca/news/business/bank-of-canada-rate-decision-1.7007264
CBC: “Bank of Canada holds rate steady and warns more increases still possible — even as signs mount they're over”
#interestrates #money #Canada #inflation #AffordabilityCrisis #deflation #stagflation
As you may know #ONS has been having trouble calculating rates of unemployment & 'economic activity', with its labour force survey increasingly seen as problematic.
Their new method (see as still experimental by the ONS) uses #tax & #benefits data to try to construct a picture of the UK's labour market
The new data suggests the labour market is sl.stronger than thought with more #workers in work than previous estimates.
How this will impact on BoE's #interestrates policy remains to be seen
Oe of the key influences on BoE #interestrates decisions is data from the Office of National Statistics labour force survey.
However, this is beset by post-pandemic/post-lockdown data collection problems, suggesting the sample(s) used my be skewed to older people, less likely to be in work, and may also be missing some aspects of #unemployment...
The problems are bad enough to delay this months data release.
Perhaps, the BoE should be cautious of the weight they put on them
h/t FT Aplhavile
Full force of interest rate hikes is yet to be felt, says Bank of England official
Swati Dhingra says economy has flatlined and millions of mostly young and poorer people could be affected if rates stay high
The economy has flatlined and only a quarter of the impact from the Bank of England’s 14 consecutive increases in interest rates has fed through, according to one of its policymakers.
Mortgage company keeps emailing and mailing us with invites to remortage our home, or buy our dream house.
Yeah, So, about that.
We got a 3% mortage.
We're not remortgaging any time soon, thanks ;)
Swati Dhingra who sits on the BoE MPC who make decisions on #interestrates, told the BBC:
'The economy’s already flatlined. And we think only about 20% or 25% of the impact of the interest rate hikes have been fed through to the economy. So I think that there’s also this worry that that might mean that we’re going to have to pay a higher cost than we should be paying'
In other words, if you think the pressure on #households has peaked, the #Bankers want you to know you've seen nothing yet!
The Board of Governors of the Federal Reserve System has one tool that doesn’t work and they insist on using it anyway.
The Fed is damaging things by intending to increase unemployment under the false belief unemployment would address greed fueled inflation.
It isn’t true inflation unless wages increase too, it is profit-taking.
#econ #economy #economics #FederalReserve #InterestRates #unemployment #jobs #banks
Might high(er) #interestrates be a good thing?
Writing in the FT Sheila Blair (ex-head of US FDIC) thinks so:
near zero interest rates:
drove asset price inflation, which has contributed to #inequality;
led to speculative investments rather than underpinning productive #investment;
skewed economic activity towards largest #corporations through market concentration (driven by low cost capital).
Finally, low interest rates finally (and always) come out as #inflation, causing instability!
The #Tories can call an election today if they wanted.
The #UK has had enough! THIRTEEN YEARS of Austerity, under investment, #Brexit, Doris, their pathetic #COVID response, #PartyGate #CostOfLivingCrisis #ToryCorruption #LizTruss #Inflation #InterestRates #Mortgages & decimating #Pensions
The UK electorate want & deserve a chance to determine our way forward, hence why we demand a #GeneralElectionNOW
As we now look to be clearly entering a period of high(er) sustained #interestrates, the Q. must be what will be the consequences?
The FT offers some possible answers:
Consumers (effective) demand will be constrained by servicing #mortgages & household #debt;
#productivity may rise as under-performing firms are bankrupted (unable to service their loans);
states may find fiscal manoeuvrability further constrained due to servicing #publicdebt;
& the #greentranstion may be harder to fund.
Hmmm... the chief of the Financial Conduct Authority is warning that a sustained period if high #interestrates may lead to a crisis of value for 'private assets';
well we're already seeing this in the #hoisingmarket (for others its a welcome decline in prices), but once this starts to play out in other (more elite-dominated) markets, the BoE's MPC might find they are being pulled aside & quiet words had about their resistance to lowering rates;
the 1% don't want to see *their* assets deflate!
#Wallace, the attorney general's lawyer, is noting that the defendants received remarkably #favorable #InterestRates on the #loans for which they used the statements, & that they gained more than $250 million. The attorney general is asking the court to assess #Trump a penalty of that amount.
Wallace concludes, saying that while it may be one thing to exaggerate for #Forbes Magazine & a #television audience, “you cannot do it while conducting #business in the State of #NewYork.”
The #FederalReserve may raise #InterestRates again before the end of the year. But first, they should think about who might miss out on their vaunted "soft landing." Adam Briones of California Community Builders explains, via @TheProgressive https://progressive.org/op-eds/real-cost-of-feds-interest-rate-hikes-briones-230925/
The latest data on #globaltrade suggests the slowdown in internationalisation continues...
This may be due to high #interestrates & #inflation reducing demand, or it may indicate the continue pivot to international trade in services.
This indicates the 'recovery' in volumes that followed lockdown(s) was temporary - a restocking? - and has fallen away.
This may prompt fears (hopes) of deglobalisation & may be a turn to more nationalised markets, but equally one Q.'s data is not a trend!
While #mortgage #debt may be an ongoing problem in a (sustained) period of high #interestrates, as Claer Barrett (FT) points out this is actually overshadowed by the non-housing household debt in the UK - Mortgages £16bn vs. other debt(s) at £22bn... with Citizens Advice Bureau now seeing more & more people with debt problems relating to borrowing to pay utility & other household bills...
The #Tories economic mismanagement (under the badge #austerity) has impoverished ever more of us.
If the UK drops into #recession in the next 6-9 months, it will have been engineered by the BoE via #interestrates rises;. the Q. then is it in whose interest is an engineered recession?
One might conclude that the #Tories want a term out of office to firmly attach the blame for the UK's economic worsening malaise on Labour;
given #voters seldom vote for the present Govt. when economies are in trouble, a recession will give the Tories the rest in opposition they now seem to want/need?
Trying to make sense of how #inflation is actually playing out... here's a breakdown (based on ONS figures) from the Guardian.
Makes interesting reading on the day the BoE only just managed to not raise #interestrates again - don't be thinking the hawkish sado-monetarists on the MPC are down with us yet...
I'm not one for long videos but this worth 11 minutes of your time. Thank God for Jon Stewart
#CapitalismKills #Capitalism #InterestRates #Profiteering
https://youtu.be/RyIeC21XeLs?si=Vo62sN80ip19whZs
There's a simple fact behind the seeming anomaly of #mortgage rates going down (albeit remaining above what they were last year) & the likely continuance of #interestrates rises from the BoE.
If you are a mortgage provider you need to lend money to make money; if your prospective customers don't feel they can afford a mortgage then you either try to screw more money out of your existing borrowers or (because this is tough with so many fixed deals), you reduce your prices!
So Catherine Mann (of the BoE's MPC - which sets #interestrates), thinks they need to go (even) higher to squeeze #inflation out of the UK's economy.... indeed, showing little regard for the effects, she told a Canadian audience; 'I would rather err on the side of over-tightening'!
The Q. is whether she can convince other members to keep raising rates further, seemingly uncaring whether squeezing inflation out of the economy actually squeezes the life out of it at the same time....
Imagine if you could own 30-50% of someone's wage for 20-30 years with them being happy about it. Welcome to the modern #mortgage
There is a solution. Let the market set #interestrates abolish #centralbanks
If we accept the Bank of England's logic (as we are told we've reached the likely peak of #interestrates rises) that a squeeze was needed due to inflationary tendencies in the economy, the Q. is what does such pressure appear at such anaemic rates of growth?
Two answers, either:
the diagnosis is wrong - inflation is not being caused by wage demands, or..
The UK's #productivity problem is now so great that there is no spare capacity for non-inflationary growth...
(or both, of course!)
Doug Ford asks Bank of Canada to halt rate hikes | CTV News https://bit.ly/3sxb66w #DoFo #BankOfCanada #DougFord #InterestRates #cdnpoli @ontariogreens @onpoli
It makes sense: if #landlords in deprived areas are more likely to have funded their properties through a #mortgage, they'd also be more likely to pass on #interestrates rises to tenants... and indeed it seems this is what is happening.
One more dimension of how the #housingcrisis' impact is skewed towards the poor(er) & vulnerable in society.
Rentier #capitalism at work
@ChrisMayLA6 @FrancisHayden1
Too whimsical a metaphor for me and also misses the direct correlation between #interestrates and costs.
The UK #inflation strategy (as in much of the world) is to keep raising costs until consumers can't spend anymore. Only then, do they expect rates to stabilise.
That completely ignores the profit motive's role in raising costs. Protecting the rich is clearly top priority.
So today my neighbors behind me are leaving Metro Portland for Houston. Cited reason being they wanted “a big house” and they can’t afford one here. Granted, they have 4 kids, but I don’t think anyone could pay me to live in Texas.
Regardless of my feelings, I continue to see an exodus of friends and acquaintances leaving for the South and Midwest.
Tip for anyone paying a mortgage and struggling with interest rates and cost of living:
Most banks (at least in .au) will drop your interest rate a little if you call them and ask! Especially if there's a gap between what they're charging you and what they're advertising for new loans.
This sounded too good to be true when I heard it, but when I called it was an easy five minute conversation and the person I spoke to cheerfully told me "I recommend everyone does this once a year." (Solidarity, I guess?!?)
@sjwrenlewis offers two rather uncomfortable points for critics of the BoE's continuation of its policy of raising #interestrates to 'tackle' #inflation:
1. As most excessive profits (in #energy & #food) are actually taken abroad (by non-UK suppliers), any policy leverage is limited (or non-existent);
2. Real #wages have not grown in the last 15 years due to the UK's #productivity problem & so the recent (continued) lag is only compounded (not caused) by inflation!
https://mainlymacro.blogspot.com/2023/08/wage-inflation-unemployment-and-what.html
#Shelter's research suggests that over half of #workers in rental properties are only one payday away from falling into arrears & risking eviction....
The #insecurity of the poor is not some bug in the system, its a feature of the UK exploitative, rentier #capitalism that is structured around an insecure workforce in a weak bargaining position, so allowing the maintenance of #profits
[see also: the BoE's #interestrates policy (earlier post)]
#ONS research suggests that core #inflation in the UK is declining, which either suggests that the BoE's #interestrates policy is working or the real drivers of inflation in the UK are easing;
So, it will be interesting to see what the BoE does next... if they do not pause interest rate rises (or even reverse the rises) then we can safely say they're not really interested in inflation, but rather are seeking to discipline #workers while #profits are protected.
Watch & make your own judgment!
For anyone looking to flexibly maximize a bit of cash, Fidelity has a great savings offer right now tied to their Bloom app.
If you sign up, complete your account, and deposit $50, they'll give you $105 ($100 for the deposit, $5 for account setup). Not only that, but they will give you an annual savings match of 10% on your first $300 of deposits for the year.
More details in thread...
#PersonalFinance #Savings #SavingMoney #InterestRates #Fidelity
#Brexit #InterestRates #Inflation #BankOfEngland
🚨*Why is Spain’s inflation so much lower than the UK’s? Because it stood up to big business.*🚨
The reliance on Bank of England rate rises alone can’t go on. In other countries, rent caps and excess profit taxes are working, so why not in the UK?
I thought "Taking back control" meant we could do what was best for Britain" which could only be done outside of the EU?
Spain's capped rents, travel fares, energy costs etc.
@fulelo Andrew Bailey's stance is odd! The poorest are hit hardest as rates rise. It's a systemic issue, not an isolated problem. And, the Bank's inflation forecasts have been wrong 6/8 times, so should we rely on that 'solid evidence'? How about focusing on equitable growth instead? #InterestRates #EconomicJustice #Inflation
Lest we forget. Don't get it twisted... 🤷🏾♂️
#Labour #CONservatives #Tories #Starmer #Sunak #Brexit #CostOfLivingCrisis #Inflation #InterestRates #Immigration #Migrants #ToryCorruption #GTTO
#GE2025🌹✅ 🗳
There is some evidence that #inflation may be easing in #retail, with a stalling of price rises for some goods & a deceleration of #foodprices inflation... but if you think that might stop the BoE ratcheting up #interestrates on Thursday, you Riley to be disappointed....
Sado-monetrism needs to see a proper #recession before its work is done & the rich have punished the rest of us for having ideas above our station (like earning a living wage, for God's sake!).
What the new U.S. Federal Reserve interest rate hike might mean for the economy.
Vox has an explainer on the change that brings borrowing costs to a 22-year high range of 5.25 to 5.5 percent, an increase that will be felt by businesses and consumers alike.
#InterestRates #Economy #Business #Fed #FederalReserve #PersonalFinance
The Fed's hot pause summer gets an ice bath: Interest rates rise again in the U.S.
NPR explains the Federal Reserve's latest move: https://flip.it/UkGu0n
#FederalReserve #InterestRates #Business #PersonalFinance #News #Economy
Hey look at this
* Metadata Matters https://byta.com/blog/insights/metadata-matters-3-payments-copyright-legal-matters/
* @eff #Poker Tournament at #DEFCON31 ♠️ https://www.eff.org/deeplinks/2023/07/eff-poker-tournament-def-con-31
* #InterestRates, #VentureCapital, and #FinancialStability https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4513037
4/
And still the #CentralBanks continue to trot out the 'wage-price' spiral as the key cause of inflation, as justification for continued rises in #interestrates & the likely #recession that they are engineering.
Its about time they understood wage rises (where they are achieved) are a lagging factor - following inflationary pushes - not the cause.
In the UK that would require a clear appreciation of the role of #Brexit; more widely it needs a focus on the role of #profits & maintaining margins!
Despite #Australia hiking official interest rates by less than most other developed nations, higher #interestrates are forecast to make Australia one of the Asia Pacific region’s worst performing economies over the next two years.
https://www.macrobusiness.com.au/2023/06/rba-to-inflict-two-year-recession/
The most important political economic Q. for the UK right now is how deep a #recession is the #BoE (& by extension the #Tories) prepared to engineer to 'tame inflation'?
As usual, those paying the price to reduce inflation, through the #Costoflivingcrisis & a descent into #poverty, are not the same people saying the 'price is worth paying'.
Using only #interestrates to deal with inflation is a political choice taken by those who have a clear notion of how to protect the interests of the rich!
"I understand the difficulty and the pain that causes for many people," Bank of England governor Andrew Bailey said. Ha ha but not for me I’m rich. #interestrates #poverty
@Broadcastscot
The #ScotlandAt7 #news with Lewis McGlynn. Tonight at 7pm UTC+1.
#BroadcastingScotland #Scotland #Ukraine #InterestRates #nationalisation #EULaws #Labstain #NationalGrid #BBC #trump #ImranKhan #ShireenAbuAkleh #NationalParks
https://www.broadcastingscotland.scot/scotland-at-7-11-05-2023/
As #interestrates reach a new (recent) record, I have written something for @NWBylines looking at how #inflation & interest rates relate as 'problem' and 'solution'
As you'd expect I draw a distinction between who is most worried about inflation & who pays the price to 'fix it'.
Plot spoiler: there often not the same people!
https://northwestbylines.co.uk/politics/economy/whats-the-matter-with-inflation/
The Federal Reserve raised interest rates again today, and markets tumbled.
Rising interest rates are one factor behind a sharp reduction in investors putting money into funds that stress sustainability and other non-economic factors.
A corporate finance expert from @ufresearch looks into what's going on with #ESG investing: https://theconversation.com/fed-rate-hikes-recession-fears-and-political-backlash-leave-esg-investors-at-a-crossroads-203639
#Fed #News #InterestRates #Investing
Hey look at this
* Stanford Interdisciplinary Working Group on #Interoperability: Report and Preliminary Recommendations https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4412862
* SHARE FESTIVAL Call for Artists 2023 https://toshareproject.it/artmakerblog/share-festival-call-for-artists-2023/
* How #InterestRates Redistribute Income https://economicsfromthetopdown.com/2023/04/16/how-interest-rates-redistribute-income/
5/
"Contrary to what neoclassical economists claim, there are no neutral market forces that allocate income in proportion to productivity. Instead there are only ideas and the power to implement them. In other words, people have ideas about what their income should be (and also what other people’s income should be). And they have the power (or lack thereof) to make these ideas a reality. That’s it."
@blair_fix, How #InterestRates Redistribute Income
https://economicsfromthetopdown.com/2023/04/16/how-interest-rates-redistribute-income/
I wrote a thing about how interest rates are not [check notes] 'neutral'.
It turns out that higher interest rates take money from workers and hand it to the rich.
https://economicsfromthetopdown.com/2023/04/16/how-interest-rates-redistribute-income/
In my last post, I argued that interest rates don't down-regulate inflation. Economist responded by ridiculing me.
Here's the follow up --- a knife trap of empirical evidence. Can economists parry with anything but insults?
https://economicsfromthetopdown.com/2023/02/19/interest-rates-and-inflation-knives-out/
0/ BTC underperformed altcoins with ~0% return & <41% dominance.
ETH (+4%) rose due to the Zhejiang test net.
BNB (+4.5%) grew from $310 to $330 on Feb. 2 then became inactive, despite @Binance suspending USD transfers & initiative to support Turkey.
More in @coin360com Weekly Roundup (Feb. 2-8, 2023):
#bitcoin #business #team #sales #ai #tech #share #security #google #markets #interestrates #blockchain #web3 #defi #cefi #cryptocurrency #nft #Coin360 #BTC #ETH #Ethereum #crypto #nfts
Here's the theory: first, hike #InterestRates, which makes borrowing more expensive and reduces the supply of money in circulation. With less borrowing, there's less expansion, which leads to layoffs that lower the spending power of workers, which means that there are fewer dollars chasing the same goods, which means that prices go down. Q.E.D.
1/
The US Federal Reserve has two imperatives: keeping #employment high and #inflation low. But when these come into conflict - when unemployment goes zero-ish - the Fed forgets about #FullEmployment and cranks up #InterestRates to "cool the economy" (that is, "to destroy #jobs and increase #unemployment").
If you'd like an essay-formatted version of this thread to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2023/01/19/creditors-vs-workers/#finance-colored-glasses
1/
Well, that’s nice. I just had my EIGHTH letter of the year, informing me that my mortgage is increasing. My monthly mortgage payments are now almost £300 higher than they were in January.