The BRITISH FOLLOW THE FED!!!!!

[Mega]

http://www.guardian.co.uk/business/2...mics.useconomy

Let the Tax payer bailout the rich !
Mega

[Jim Nickerson]

Re: The BRITISH FOLLOW THE FED!!!!!

http://www.guardian.co.uk/business/2...mics.useconomy

Let the Tax payer bailout the rich !
Mega

Good find, Mega, thanks for it.

[Mega]

Re: The BRITISH FOLLOW THE FED!!!!!

Thanks Jim
I try to find "Good" sources of info for all those on itulip, to show that things in "Blighty" are JUST as bad as the US. Jim, what do you think of engery trusts like "Penn West" ?
Mike

[Jim Nickerson]

Re: The BRITISH FOLLOW THE FED!!!!!

Thanks Jim
I try to find "Good" sources of info for all those on itulip, to show that things in "Blighty" are JUST as bad as the US. Jim, what do you think of engery trusts like "Penn West" ?
Mike

Mega, I don't follow energy trusts, so I cannot give an opinion, sorry.

Here is a piece I just read :

BCA Research: Euro area inflation is peaking
“… concerns about an upward spiral in consumer price inflation within the euro area are premature.

“The gap between euro area headline and core CPI is the widest on record: Headline inflation is running at 3.3%, well above the ECB’s target of 2%, while core is trending down and is only at 1.8%. However, this gap is set to narrow via a slowing in the headline rate. Despite the angst about energy and food prices, the impact of both on inflation is likely peaking. In fact, even if crude prices remain at around $100/bbl over the next year, the rate of change will slow markedly. Our Models suggest that energy’s contribution to euro area headline CPI will drop substantially and implies European central bankers could have a change of heart over the coming months, so long as second round effects do not occur.”

Source: BCA Research, April 2, 2008.

I don't know how immune UK is from what happens on the Continent, but the above suggests to me the possibility of lessening inflation which could allow ECB to lower rates--that's what I make of the "change of heart" comment. I could guess that if the ECB lowers rates it would boost the dollar and might also lift equity markets, and lower all those commodities that are priced in inflating dollars. How this would affect the UK, I am not smart enough to figure. Edit: and I don't know what "second round effects" are.

[Guest]

Re: The BRITISH FOLLOW THE FED!!!!!

... the above suggests to me the possibility of lessening inflation which could allow ECB to lower rates--that's what I make of the "change of heart" comment.

This sounds a lot like Macro Man's take on the "lessening of inflation". You guys are using ever shifting "Mishian" parameters of what you judge inflation by. "Price pressures abating" - what does that mean when the MZM monetary spigots are wide open?

Prieur Du Plessis - isn't he one of John Mauldin's chums at Millenium Wave Investments? These guys seem like they'd be right on the same wavelength with "Macro Man" regarding the nature of inflation.

Du Plessis, meet Macro Man - you guys must have a lot to talk about.

Enchante'. And how do you like our chilled South African Reisling? "Change of heart" indeed! More like a windsock than an analyst, IMHO.

PRIEUR_DU_PLESSIS_ROUNDTABLE_VERY_JOLLY.jpg

[Mega]

Re: The BRITISH FOLLOW THE FED!!!!!

.............and in english?
Mike

[Guest]

Re: The BRITISH FOLLOW THE FED!!!!!

.............and in english? - Mike

Miker - don't listen too much to what they are rattling on about regarding "weakening price pressures". Watch the monerary aggregate numbers. The more we get "deflation fear" and "weak demand" fear in the news, the more they will goose the monetary aggregate numbers. They can do a lot of fancy footwork meantime with the interest rates to distract us from the real inflation.

Goosing the monetary aggregates while jacking up interest rates is equivalent to having your car stopped at the red light, foot hard on the brakes, emergency brake on, while you floor the gas pedal hard - lots of smoke and tire squealing going on, while the engine heats up as they try to goose economic growth. Great environment for gold.

I thought all you Limeys spoke a bit of French? After all, the French and the British have been locked in a love / hate embrace for centuries, non? You guys even owned a big chunk of their manor for a century, didn't you? Then their Normans came over and owned a bunch of yours? That must have been a bit grand (for a while)!

[Mega]

Re: The BRITISH FOLLOW THE FED!!!!!

If you wish to understand what total Bastards we are Luke, Lindon will only be too happy to inform you.........BTW Did you know that he said MOndeo was a KGB agent?

Now, Penn West?
Mike