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  • BOE Gov. Bailey: If we do not act forcefully now, the consequences will be worse later

Added at 8:34am

Added at 8:35am

Added at 8:35am

"BOE GOV. BAILEY: IF WE DO NOT ACT FORCEFULLY NOW, THE CONSEQUENCES WILL BE WORSE LATER."

Right idea but woefully behind the curve just like all the rest of the CB talking heads!
Don't know why, but this doesn't seem to me hawkish but rather someone who is in panic mode )
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Yes someone please tell the wimps at RBA the same thing!
still early you did not reach parity yet
Quoting Robert1991
Don't know why, but this doesn't seem to me hawkish but rather someone who is in panic mode )
Right now it's a bit of a pi$$ing contest between the CB heads to who who has the most street cred...
bring the GBP down to 1.00
Beginners Luck
Their hands tied badly this time. there is lot of debt piled everywhere; governments, companies and consumers. Taming inflation needs some restrictive policy but that will make it harder for big part of the population + governments. We will have a long period of hard times and that needs a different policy particularly on fiscal side. Maybe we will need to live with 4-5% inflation and low growth rates and negative real interest rates to reduce debts.
Taming inflation by hiking rates, really? I guess only Powell, like or dislike, who makes sense. saying that the root of inflation is due to energy and food prices which are all caused by the war, Russia and Ukraina. Russia and Ukraina hold the key to tame the inflation. Yet, there is no any attempt to deescalate this war. They (politicians) even gear it up. This world must be crazy
Quoting LittleMonkee
Taming inflation by hiking rates, really? I guess only Powell, like or dislike, who makes sense. saying that the root of inflation is due to energy and food prices which are all caused by the war, Russia and Ukraina. Russia and Ukraina hold the key to tame the inflation. Yet, there is no any attempt to deescalate this war. They (politicians) even gear it up. This world must be crazy
Yep sure. The war is the only inflationary driver here. That is why steaky CPI is rising while energy prices are going down. This war was only one factor out of the trillions of dollars printed out last 2-3 year.
Quoting Robert1991
{quote} Yep sure. The war is the only inflationary driver here. That is why steaky CPI is rising while energy prices are going down. This war was only one factor out of the trillions of dollars printed out last 2-3 year.
It can be trillion reasons. Denying the fact that is the main contribution for inflation is like putting the fire off with gasoline. It's denial. But anyway, isn't that really important? No.. Especially if you see energy prices is down at the moment you trade it. Sure. Oh btw, is it oil is up or down these days? Cant catch up with it.
And yes, I think it was not long time ago when Trump was President and Merkel was Germany's Chancellor. If I'm not mistaken, sorry folks, I have a short memory these days, the inflation was quite low compared than now. But soon as Biden is in charge, Merkel is out, the war began and price started to go up. I am not in politics but that is what I could remember. Both Trump and Merkel avoid the war the best they can do because I do believe they have the brain to see what would happen to economy if war takes place. Ah, but that's not important now.. BCOUUSD seems has just completed its pullback.. Fancy to trade it mate?
Quoting LittleMonkee
Taming inflation by hiking rates, really? I guess only Powell, like or dislike, who makes sense. saying that the root of inflation is due to energy and food prices which are all caused by the war, Russia and Ukraina. Russia and Ukraina hold the key to tame the inflation. Yet, there is no any attempt to deescalate this war. They (politicians) even gear it up. This world must be crazy
I'm glad to see SOMEONE is paying attention to what they are saying/lying to you about!

The inflation has 4 components:
1. ENERGY - Yes the war has had an impact but that has been amplified by the Biden administration pulling oil production in the USA - THE FIX: DRILL BABY DRILL

2. FOOD - Yes the war has had an impact but mainly on WORLD food supplies, namely Africa and Asia. Yes there is fertilizer as well but frankly this inflation effect is mainly on countries OTHER than the USA

3. WAGES - Wage inflation is IMPOSSIBLE to fix. WHY? Who takes a pay cut for doing the same work? Thanks to the FED and the surplus $ in the system business were competing for workers. Long story - unemployment needs to hit 8%

4. HOUSING - In the US housing prices SURGED in the past 2 years and they NEED to come down - hence interest rate hikes. Right now that is killing the home builders and causing pain but what the FED doesn't realize is this: There is a housing SHORTAGE in the US. There is a HUGE pent up demand and the builders are not building because people don't want 7-8% mortgages they want 2-3% like it has been for the past 10 years.

Those 4 reasons account for inflation and the war in Ukraine plays a MINOR role.

But what do I know......
...because you never know - until you do!
Quoting fxsport
{quote} I'm glad to see SOMEONE is paying attention to what they are saying/lying to you about! The inflation has 4 components: 1. ENERGY - Yes the war has had an impact but that has been amplified by the Biden administration pulling oil production in the USA - THE FIX: DRILL BABY DRILL 2. FOOD - Yes the war has had an impact but mainly on WORLD food supplies, namely Africa and Asia. Yes there is fertilizer as well but frankly this inflation effect is mainly on countries OTHER than the USA 3. WAGES - Wage inflation is IMPOSSIBLE to fix. WHY? Who...
Good. Learning basic facts and logic how inter-related economy work will help you to grasp what's going on and all those related to Russia and Ukraina war. Stop for a while consuming all that bs conspiracy theory bla bla.. Only impacting Asia and Africa lol.... Either too much netflix or junk food, scientifically proven, does not make people use that little part of their upper body, that is brain. really..
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