Inflation rates no longer targeted

[BrilloPad]

BBC News - UK interest rates held until unemployment falls

The new Bank of England governor, Mark Carney, has said the Bank will not raise interest rates until the unemployment rate has fallen to 7%.

The UK unemployment rate currently stands at 7.8%.

He said that until that threshold was reached the Bank would not cut back on its £375bn asset purchase programme.

================================================== =============

So there could be more QE. And if unemployement stays high then inflation can go as high as it likes. Or have I got that wrong?

[DimPrawn]

So basically following the yanks, which also target unemployment rather than inflation rates.

Lots more money printing then!

[Paddy]

So basically following the yanks, which also target unemployment rather than inflation rates.

Lots more money printing then!

I could help elevate unemployment . All I need is lots of busses to turn up at Capgemini and BT and order intercompany visa Bobs to go home.

[MyUserName]

I might just be a valley boy with no training in economics but surely anything they do is like re-arranging deck chairs on the Titanic?

We overspend, the vast majority of individuals do it and the government does it. People now take for granted a standard of lifestyle they cannot afford and will not give it up easily unless they are forced to.

If the government slash spending and increase taxes etc so we start cutting the deficit then there will be riots and that government will be out on their ear at the next election. Hence the goverment are going to come up with schemes and measurements to show that things are alright really.

So the country will limp along suffering death by a thousand cuts before some kind of extreme event happens which might not be for several years. Rather like someone taking days to bleed to death and then doctor's jumping in to save him just after he has been dead for a few days.

Am I missing something?

[eek]

I could help elevate unemployment . All I need is lots of busses to turn up at Capgemini and BT and order intercompany visa Bobs to go home.

No you couldn't. We need to spend 6 months identifying suitable europeans to do IT work, then 18 months to train them up and only then can we remove intercompany transfers.

The damage has already been done. Many of us will have work for the rest of our days because there are few people in their 20s doing IT.

[bobspud]

I might just be a valley boy with no training in economics but surely anything they do is like re-arranging deck chairs on the Titanic?

We overspend, the vast majority of individuals do it and the government does it. People now take for granted a standard of lifestyle they cannot afford and will not give it up easily unless they are forced to.

If the government slash spending and increase taxes etc so we start cutting the deficit then there will be riots and that government will be out on their ear at the next election. Hence the goverment are going to come up with schemes and measurements to show that things are alright really.

So the country will limp along suffering death by a thousand cuts before some kind of extreme event happens which might not be for several years. Rather like someone taking days to bleed to death and then doctor's jumping in to save him just after he has been dead for a few days.

Am I missing something?

Or they can silently QE the lot of us to a point where our house prices are smaller than a new car purchase and our debt can be paid with a medium sized currency denomination

[eek]

I might just be a valley boy with no training in economics but surely anything they do is like re-arranging deck chairs on the Titanic?

What it does mean is that interest rates aren't going to increase so buy the biggest house you can get a mortgage for.

[bobspud]

The damage has already been done. Many of us will have work for the rest of our days because there are few people in their 20s doing IT.

That sound really horrible until you think about it for a minute or two.

I work from home loads as it is today. So if you tell me with medication and workplace improvements I get to do what I do now for the rest of my life, I would be quite happy with that. It beats ******* about with a pension scheme that will steal my money when I need it most and I get to not turn into a vegetable that can't work a basic computer after a few months because my mind is going atrophied

My father in law is just about to retire as a real architect and he is in his 70's. He was pissed off when they tried to make him give up work at 60. He just did not want to give up doing something he enjoys.

So 10k a month and a workplace that NEEDS me cause there are not enough skilled worked as opposed to one that dumps me at 50 and buys a bob sounds fine. The sooner the bobs can price themselves out of the market with a strengthening currency the better...