/biz/ - Business & Finance

>>51686123

not sure if serious

> they have said they can only do it for the next 2 weeks
> it will drive up inflation even further and rates will need to go even higher

in summary, it only works in the short term.

>>51686589
Europeans are economically illiterate

>>51687386
>American calling anyone illiterate
Lmao, just kys Pedro

>>51687386
this. it's why they are always poor and starving and killing each other all the time

If the BoE ends up raising rates again, won't the Fed be forced to try and keep up?

>>51687386
>>51687708

OH SAY CAN YOU SEE ...
HAHAHAHAHAHAHHAHAHAHAHAHAHA.

America = country of fucking retards ! Never ending laughs. Please never change mutt(s)..

>>51687622
>Listened to a 16 year old with down syndrome on energy policy
>Freezes to death while she escapes living off of the millions she's made
Christmas tiiiiime is heeeere

>>51686123
Because everywhere else is not retarded enough to add more inflation onto already high inflation.

>>51688433
>bombs your pipeline so you freeze to death this winter
keep coping fat

>>51686589
2 weeks to flatten the curve right anon?

>>51686123
They did what Latin American countries usually do. Throw more money at the problem to give themselves a few more weeks of stability and then after that inflation becomes even worse. Even former US treasury secretaries and former UK finance ministers are calling them out for being latin america tier

>>51688543
What was the alternative? Allow bond yields to go parabolic and crash the world economy?

>>51690452
>crash the world economy?
the world doesn't give a shit about your has-been island

The BoE made the best move in the circumstances. Yes they are buying and selling bonds at the same time. But they are buying long term (because pension funds were suffering a specific vulnerability to collapse here) and selling short term.

This will not affect inflation more than perhaps a few single basis points. The government has acted retardedly over the last years and days especially, but the BoE was absolutely right to do what they’ve done.

>>51690452
How about taking the hard recession on the chin like every other time in history and endure a few years of hardship instead of kicking it down the road and risking an economic depression that might last far longer and be far worse? The US is doing that. Why can't the UK?

>>51690642
>bonds become more lucrative than stocks and currencies
Yeah I’m thinking that could crash this gay earth no problem

>>51690664
>just let pension funds collapse bro
The BoE had to act to improve the GILT market. Pension funds were exposed to long term bond prices so the BoE is specifically targeting that market to save pension funds collapsing. No question it was the right call.

>>51690673
nigerian bonds at 20% aren't crashing the world economy though

>>51690656
>>51690697
>YCC does not cause significant inflationary pressure
What utter horseshit. YCC is to be used when you want to reboot your economy AFTER you have already been through a recession, not before you're even in it. Because it stimulates economic activity, which does what? Leads to additional inflation. The pension funds going down would have been very bad, but the whiplash coming for you before the end of Q2 next year will be even worse

>>51690642
The US 10 year yield was about to enter a parabolic rise following the UK. The entire debt market could have broken if there wasn't an intervention.

>>51690697
All they did was buy a few weeks of time. Also the cure was worse than disease since inflation is just going to keep rising and wiping people's savings out

Someone please explain to me why inflation is bad if wages keep up.

And wages will keep up with inflation so no one just say "they don't". The whole "wage price spiral" is based off of this idea.

>>51690922
But they don’t. Wages are not up 9% over the last year, in fact with inflation wages are already negative. What the fuck are you talking about?

>>51690943
Wages have been negative since the 90s without inflation.

Inflation leads to wage growth the 70s is proof of this. And you absolute retard I said don't just say but they don't.

>>51690922
I thought the wage price spiral was just a concept the upper classes used to shit on poorer folk and keep themselves elevated.

>>51690943
Oh not to mention the fact they quite literally grew by **over** 9%. https://tradingeconomics.com/united-states/wage-growth

Fucking retard.

>>51686589
When BOJ intervene for the yen. Lasted one day

>>51690452
Yes. Duh

>>51690967
Inflation has been around forever you mongoloid, it’s not some new phenomenon

>>51690990
It is, and that's precisely why they hate inflation and pretend its bad for the lower class when it's actually not.

The 2% inflation target is completely arbitrary, why not 5% or 10%. There is no fucking reason besides its bad for rich people because assets don't keep up with inflation. Which is precisely why it's good for poor and middle class people.

If you want to solve the housing crisis you should be happy to see inflation.

>>51690656
Anon. This half ass intervention will be retraced within 1 week. How many rounds they gonna do? It’s all so tiresome. It’s time to let it all burn

>>51690834
Q2? Try less than one week before round #2

>>51691049

>>51691038
Please kys you are so fucking stupid.

>>51691049
Holy shit this has to be one of the most retarded things I’ve ever read in my life

>>51691078
>I trust "economicists"

>>51691049

Person A: $10/hour
Person B: $100/hour
Average wage: $55/hour

Person B gets a 10% raise
Person A gets no raise

Person A: $10/hour
Person B: $110/hour (after raise)
Average Wage: $60/hour

"wages have increased over 9%" Vote for me!!!

>>51691049
You're a laughable faggot. The real rate of inflation for wages is near 20 percent per the Feds old way of calculating it from the 1970s. Go choke on a baby dick JDIF stooge.

>>51691049
>besides its bad for rich people because assets don't keep up with inflation
Did you miss the part where assets across the board shot up 50-400% in value in the months after central banks began providing trillions in stimulus after the covid crash? Did you think the S&P500 shooting up 118% while the global economy had frozen due to lockdowns was a random occurence? That was the market pricing in future inflation and then it became a speculative bubble on top of it

>>51691131
Are you stupid? The S&P 500 has not kept up with inflation since precovid.

>>51691177
I give up. This board has become too fucking stupid. I'll be back in 2024

>>51691216
Yes you should because you can't do simple math.

>>51691177
???

Precovid crash to ATH was +42%, currently at +10%.

From the covid dip, it's way higher.

>>51691287
+%10 is less than inflation... the ATH does not fucking matter.

>>51688665
Are we at war with the EU?

>>51691730
We've always been at war with Eurasia

>>51691049
Because inflation is followed by recessions, and people baghold homes, which is fine if you bought 3 or more home

>>51691115
We have all being person A, its more age19-24 vs 25+

>>51690656
>Yes they are buying and selling bonds at the same time
lol

>>51690922
>Someone please explain to me why inflation is bad if wages keep up.
wages dont keep up

>>51691049
>It is, and that's precisely why they hate inflation and pretend its bad for the lower class when it's actually not.
jesus dude you believe this janet yellen freemason bullshit

>>51690452
>What was the alternative? Allow bond yields to go parabolic and crash the world economy?
>Noooo you can't just let market forces find fair prices for assets!

>>51686589
>next 2 weeks
2 more weeks? so what happens after this? what's the point of doing this if the pensions or whatever get fucked in the end anyway?

>>51687805
The Fed responds to inflation, not third world countries.

>>51690922
Wages dont keep up.
Upward wage pressure is the excuse they use to import third world labour.

>>51691115
Person B has expanded their skillset and is 10% more productive
Person A is as useless as ever, in a job society needs less this year than last, surrounded by more people willing and able to perform their duties.

>>51691949
Air strip one gets it.

>>51693411
can someone answer this?

>>51690922
savings account

>>51693807
To survive another day. You string that together 7 times it's a week, 12 times that and you have a quarter. And if you can do that you can keep things going for years and years.

>>51693835
yea but doesn't that just cause massive inflation and collapse the pound further?

>>51687622
America is the 2nd biggest economy in the world despite only being 4% of the global population, you have to put your whole continent of nations together just to compare to it and that entails have over double its population just to barely eek out a win there against dozens of millions of Mexicans and assimilated African diaspora. Just admit that you're a continent of neets and feminists, coasting off the greatness of greater generations before you who will likely never exist again for a century at least if ever.

>>51690922
>wages will keep up with inflation

ok, but doesnt this mean that the BOE just flooded the market with their money? why did the GBP and UK bonds go up together? shouldnt the GBP have tanked on the news today?

>>51693411
It gives the big boys time to move thier assets out of the country. It’s like the titanic, first class passengers are given lifeboat access first.

>>51693938
Never.

>>51690452
Crashinh the world economy is the whole point.

>>51688433
I'd love to see the body cam footage of that. They only say she had a vest on, no mention of any weapon, but she ran towards them.

Just another dead kid. Collect 200 dollars.

>>GPneFh+m
What do raises due to an expanded skillset have to do with wages increasing along with inflation?

>>51686589
how many weeks you say?

>>51686123

Had the central bank not intervened, there would have been mass insolvencies of pension funds by Wednesday afternoon.


https://www.risk.net/derivatives/7954682/uk-pensions-hit-with-ps100m-margin-calls-as-gilts-and-sterling-slide

From article: Pension funds face large margin calls on the interest rate derivatives and asset swaps they use for asset-liability hedging. Some are also being asked to post additional collateral against leveraged gilt repo positions, as well as foreign exchange derivatives used to hedge US dollar assets.

They didn’t fix anything, bond yields are spiking again right now their intervention isn’t enough kek we truly are fucked

>>51690922
>And wages will keep up with inflation so no one just say "they don't"
They haven't for 60 years you retard, why do you think everyone is poor?

>>51695997
This is just Operation Twist. The USA did it for years.

>>51695407
Let's say hypothetically that the pension fund got liquidated, what would retired people using said pension fund do if they are relying on the fund to pay for food and bills. At this point the government will intervene and print more money to cover the lost pension fund, further inflation devaluing the currency.

>>51693854
The situation isn't solvable.

>>51686589
TWO MORE WEEKS TRUST THE PLAN

>>51690922
>Requires any saved earnings to be exposed to volatile risk, who's base assumption is infinite growth of the economy (who's base assumption is infinite population growth)
>Incentivises mindless consoooomerism because everything is going to be more expensive tomorrow
>Psychologically damaging to the concept of "store of value" and "permanence of the state"

>>51694162
A suicide vest?

>>51695997
They'll defend the bottom again if they have to.
Central banks have enough ammo to stall the trend... for a few weeks kek.

>>51697231
No, probably not even a plate carrier just a chest rig. Cops are faggots.

>>51690834
Yes but the buy back is only for 2 weeks, it’s enough time to let pension funds get their shit in order, that’s all. The inflationary affects on this will be minuscule

>>51690891
Inflation will rise a few single basis points because of this, compared to liquidating entire pension funds that is a price worth paying dozens of times over

>>51686589
My understanding is this 2 weeks will give the pension firms time to shift stuff around.
Wouldn't be surprised if it doesn't work out like that and instead goes to shit.

>>51690922
>wages will keep up with inflation

Youre either the biggest fucking idiot on the entire internet, or an IDF propaganda shill with a big nose

Either way kill yourself

>>51687805
Is this a fucking joke?

>>51690922
I had a serious response to this post until i saw this: >>51690967
God damn you're a fucking idiot and it's not even worth it to explain basic concepts to you. I guess I should be glad people like you exist though since exit liquidity needs to come from somewhere.

>>51690697
Oh no defined benefit bastards won't get my labour!

>>51686589
>painting a red hot target on your back by giving a time frame
what could possibly go wrong

>>51690834
We did QT for a week, it's QE time again!

>>51690922
>savings worth less
>encourages people to live riskier and buy more expensive items since saving money is worth
>only real way to get a raise is to swap jobs, sometimes uprooting your entire life
>gentrification happens more rapidly, small towns near cities get overrun with the riff raff that got priced out of the ghetto

>>51697016
> what would retired people using said pension fund do if they are relying on the fund to pay for food and bills
They'd eat out my hand

>>51690922
i see you brother but you're not being bold enough
we should automatically give wage raises double the nominal inflation

>>51693854
Every time you kick the can, it degrades the standard of living of the median citizen. We've kicked the can so many times that we are at the point of having a birth rate of 0.5 and a diet of crickets.

>>51691730
Yes. Ukraine was the perfect ploy to further subjugate the European continent.

>>51699011
I’m selling bags for tuppence, if you want to feed those old birds.

kek
they've bought 2 weeks AT MOST

>>51686589
If it only works in the short term just keep doing it short term
Then you never have to worry about the long term consequences

>>51686123
They gonna do a Turkey and hyper-inflate. I would run out of the pound if I were you.

>>51697152
no refunds

thanks for playing

>>51687805
This is going in my humor folder.