Discussion
All we ever hear about the BoE is the base rate going up or down a bit.
When inflation goes up you edge the base rate up bit by bit until it stops. When inflation goes down and/or the economy is borked you lower it bit by bit until until it picks up. I could do that, and for half Mr Bailey's salary. So what else goes on in that huge building?
When inflation goes up you edge the base rate up bit by bit until it stops. When inflation goes down and/or the economy is borked you lower it bit by bit until until it picks up. I could do that, and for half Mr Bailey's salary. So what else goes on in that huge building?
CAH706 said:
I think it's more a case of them just doing what America does
They seem clueless on what factors have actually driven inflation
^^^ Absolutely this.They seem clueless on what factors have actually driven inflation
Their solution simply doesn't fit the problem. It's like pouring petrol on a fire in hope that any cool liquid will extinguish the flames.
Yep, they cause the house fires, then they throw petrol or water depending on how it's looking 5 minutes ago.
Wouldn't it be better with a system where a fire at all wasn't desirable?
A system and economy where perpetual growth wasn't essential?
A system where we can grow and shrink, rather than just grow even if it's at manifold societal detriment, possibly beyond the supposed detriment of having an economy that deflates from time to time.
Wouldn't it be better with a system where a fire at all wasn't desirable?
A system and economy where perpetual growth wasn't essential?
A system where we can grow and shrink, rather than just grow even if it's at manifold societal detriment, possibly beyond the supposed detriment of having an economy that deflates from time to time.
TT1138 said:
...economists sit somewhere between palm readers and mediums in terms of prediction accuracy.
- but make vastly more money. The son of a friend of mine is an economist with (I think) Barclays and gets a nice bonus.There must be more to it than talking jargon whilst sounding convincing I'm sure.
Simpo Two said:
All we ever hear about the BoE is the base rate going up or down a bit.
When inflation goes up you edge the base rate up bit by bit until it stops. When inflation goes down and/or the economy is borked you lower it bit by bit until until it picks up. I could do that, and for half Mr Bailey's salary. So what else goes on in that huge building?
A little thing called RTGS which settles over £700bn worth of transactions every day. The PRA which supervises institutions posing systemic risk. Then there's a bunch of numpties making incorrect forecasts and gaffes for the comms teams to clear up.When inflation goes up you edge the base rate up bit by bit until it stops. When inflation goes down and/or the economy is borked you lower it bit by bit until until it picks up. I could do that, and for half Mr Bailey's salary. So what else goes on in that huge building?
The economists and Mr Bailey and his ilk actually make up a small % of the Bank.
I love this guy and his take on the Economists we hear from seems valid?
https://www.youtube.com/watch?v=H5b1vzARyfI
https://www.youtube.com/watch?v=H5b1vzARyfI
In less than two months Redacted thinks that cash will be replaced in the US with digital currency. If this is the case it will cause mass pandemonium their and no doubt the UK will attempt to follow suit.
Personally I think they are all on crack cocaine if they manage to pull it off.
https://www.youtube.com/watch?v=cG-UxBM6pPc
Personally I think they are all on crack cocaine if they manage to pull it off.
https://www.youtube.com/watch?v=cG-UxBM6pPc
Edited by LordFlathead on Friday 12th May 01:05
g4ry13 said:
A little thing called RTGS which settles over £700bn worth of transactions every day. The PRA which supervises institutions posing systemic risk. Then there's a bunch of numpties making incorrect forecasts and gaffes for the comms teams to clear up.
Thanks; I knew that building had to be full of something.Specifically to the UK, RTGS appears to be CHAPS. If so I didn't realise all payments went through the BoE; do they act as a 'buffer' while the wheels on the other banks catch up?
How does the PRA differ from the FCA?
Simpo Two said:
All we ever hear about the BoE is the base rate going up or down a bit.
When inflation goes up you edge the base rate up bit by bit until it stops. When inflation goes down and/or the economy is borked you lower it bit by bit until until it picks up. I could do that, and for half Mr Bailey's salary. So what else goes on in that huge building?
Tell us to suck up being poorer. When inflation goes up you edge the base rate up bit by bit until it stops. When inflation goes down and/or the economy is borked you lower it bit by bit until until it picks up. I could do that, and for half Mr Bailey's salary. So what else goes on in that huge building?
Tell us not to ask for payrises.
Mmm. Under Bailey's watch, the FCA became unfit for purpose. It couldn't even hold on to staff. In my professional area, the approach to market engagement was summarised (from a head of market supervision) as ever refining regulation. Let's ignore the elephants in the room on just how destructive some of those refinements were?
I wasn't impressed with him then, and seeing him get the BoE job was truly a shock. He hasn't impressed at all since then.
I wasn't impressed with him then, and seeing him get the BoE job was truly a shock. He hasn't impressed at all since then.
Simpo Two said:
g4ry13 said:
A little thing called RTGS which settles over £700bn worth of transactions every day. The PRA which supervises institutions posing systemic risk. Then there's a bunch of numpties making incorrect forecasts and gaffes for the comms teams to clear up.
Thanks; I knew that building had to be full of something.Specifically to the UK, RTGS appears to be CHAPS. If so I didn't realise all payments went through the BoE; do they act as a 'buffer' while the wheels on the other banks catch up?
How does the PRA differ from the FCA?
Previously we had the FSA which regulated the financial industry. This was then split into the FCA and the PRA in 2013. The FCA deals with matters of conduct - it's more consumer facing. Whereas the PRA has a more supervisory role of institutions, collecting their financial data and taking action when needed.
edit: Also to add, they have a museum which the public can come along to and see some of the history.
Edited by g4ry13 on Friday 12th May 10:57
ChocolateFrog said:
Tell us to suck up being poorer.
Tell us not to ask for payrises.
But it's not possible to have a higher standard of living/more disposable income every year, year after year, especially when people want to work less and/or for more money. No rise can go on for ever. The growth we came to accept as standard was handed to other countries who work harder for less.Tell us not to ask for payrises.
g4ry13 said:
RTGS is the infrastructure and CHAPS was previously independent and moved in-house to the BoE in 2017. The Bank provides delivery versus payment settlement as well for schemes such as Faster Payments / Mastercard / BACS / Visa / CREST. So it really depends on the type of payment you are making but at some point the payment will pass through the system.
Previously we had the FSA which regulated the financial industry. This was then split into the FCA and the PRA in 2013. The FCA deals with matters of conduct - it's more consumer facing. Whereas the PRA has a more supervisory role of institutions, collecting their financial data and taking action when needed.
Great, thanks Previously we had the FSA which regulated the financial industry. This was then split into the FCA and the PRA in 2013. The FCA deals with matters of conduct - it's more consumer facing. Whereas the PRA has a more supervisory role of institutions, collecting their financial data and taking action when needed.
Also banknote exchanges. Quite often you'll see a queue of people standing outside the Bank waiting in a line to change their old notes.
The Bank also has agents across the country which are meant to keep their finger 'on the pulse' by interacting with local businesses. No idea how much value they really provide though.
Not to mention that the Bank also stores around 400,000 bars of Gold which takes up quite a bit of space!
The Bank also has agents across the country which are meant to keep their finger 'on the pulse' by interacting with local businesses. No idea how much value they really provide though.
Not to mention that the Bank also stores around 400,000 bars of Gold which takes up quite a bit of space!
Edited by g4ry13 on Friday 12th May 11:07
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