Brexit (Old) - Page 56

Mr K · 03-08-2018, 11:29

If we ever do back in the EU we probably won't get the opt out/rebates we used to have. Its far from perfect, like most large organisations, but we might realise 'we never had it so good'.

papa smurf · 03-08-2018, 11:30

Quote:

Originally Posted by Mr K

If we ever do back in the EU we probably won't get the opt out/rebates we used to have. Its far from perfect, like most large organisations, but we might realise 'we never had it so good'.

or never had it so bad

1andrew1 · 03-08-2018, 11:47

Quote:

Originally Posted by Mr K

If we ever do back in the EU we probably won't get the opt out/rebates we used to have. Its far from perfect, like most large organisations, but we might realise 'we never had it so good'.

Spot on. Recent interest rates rises only serve to prove this point.

Carth · 03-08-2018, 11:55

Quote:

Originally Posted by 1andrew1

Recent interest rates rises only serve to prove this point.

Interest rates have gone up and down since the first crook lent money to his neighbor . . it's not solely down to Brexit.

nomadking · 03-08-2018, 12:08

Quote:

Originally Posted by 1andrew1

Spot on. Recent interest rates rises only serve to prove this point.

Interest rate rises are used to calm the economy down, when it's doing TOO WELL.

The rebates didn't start when we joined the EEC. Other countries have rebates.

Quote:

Brussels has been refunding around €6bn a year to the likes of Germany, the Netherlands, Austria, Sweden and Denmark.

1andrew1 · 03-08-2018, 12:11

Quote:

Originally Posted by nomadking

Interest rate rises are used to calm the economy down, when it's doing TOO WELL.

They're being used to reduce inflation which is due to the weakened pound post the Brexit vote. It seems to have worked in this respect as the Pound has risen.

nomadking · 03-08-2018, 12:29

Quote:

Originally Posted by 1andrew1

They're being used to reduce inflation which is due to the weakened pound post the Brexit vote. It seems to have worked in this respect as the Pound has risen.

Quote:

The Bank's MPC had been expected to raise interest rates in May, but held fire because the economy went through a weak patch at the start of the year - partly because of the harsh weather conditions, dubbed the Beast from the East.
The Bank is now confident that the dip was temporary and that economic growth will recover from the 0.2% rate seen in the first quarter, to 0.4% in the second quarter and maintain that pace later in the year.

And the reason for inflation going up.

Quote:

Why has the bank raised interest rates? Look no further than your payslip.
After five years of pay growing at a measly average of 1.75%, pay rises are now running at an average of 2.75% and are expected to go higher.

djfunkdup · 03-08-2018, 12:53

Quote:

Originally Posted by 1andrew1

They're being used to reduce inflation which is due to the weakened pound post the Brexit vote. It seems to have worked in this respect as the Pound has risen.

238'days 11'hrs 7'min and 49 seconds ....

---------- Post added at 12:53 ---------- Previous post was at 12:51 ----------

Quote:

Originally Posted by papa smurf

or never had it so bad

+1

Pierre · 03-08-2018, 14:31

Quote:

Originally Posted by 1andrew1

Spot on. Recent interest rates rises only serve to prove this point.

That comment only serves prove that you don't understand why the recent quarter % rise was introduced.

1andrew1 · 03-08-2018, 14:45

Quote:

Originally Posted by Pierre

That comment only serves prove that you don't understand why the recent quarter % rise was introduced.

So are you saying that interest rate rises are not there to put a brake on inflation then?

Pierre · 03-08-2018, 15:14

Interest rate rises are a tool that can be used to put a brake on inflation, but that was not the reason in this case.

Inflation has remained fairly stable recently at around 2.3%/ 2.4% since May, and down from it's peak of 3.1% in November last year, so there is no reason to raise interest rates for that reason.

The reason is that the economy is likely to do well for the remainder of 2018 therefore the economy should be able to handle a smooth gradual increase of interest rates. The Bank of England would ideally like to see interest rates get up to a workable level of 2.5 - 3.0% over the next few years.

Having interest rates down at below 1% really hampers the ability of the bank to intervene in a meaningful way should need to stimulate the economy in the future.

If all things go to plan I would expect the interest rates to be 1% - 1.25% by the end of the year.

Sephiroth · 03-08-2018, 15:22

Pierre is absolutely right. Particularly the point about increasing the BoE's ability to make meaningful interventions when necessary.

I also wonder how many people understand why it is necessary to have at least 2% year on year inflation. Of course the main problem we face, Brexit or not, is productivity. If that rises, then 2% inflation generates proper wealth.

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Quote:

Originally Posted by Mr K

If we ever do back in the EU we probably won't get the opt out/rebates we used to have. Its far from perfect, like most large organisations, but we might realise 'we never had it so good'.

If as a result of a second referendum we stay in the EU then we keep our opt outs/rebates (unless those Brussels "whatsits" try to skew Article 50 to punish us). Btw, I do hope that the Remainers in this thread do at least share a large chunk of my opinion of the EU Commission as represented by Juncker and Salmeyr.

**Mick** · 03-08-2018, 16:00

Quote:

Originally Posted by Mr K

If we ever do back in the EU we probably won't get the opt out/rebates we used to have. Its far from perfect, like most large organisations, but we might realise 'we never had it so good'.

This is a joke - we pay in a hefty membership fee for paltry trade agreements that are controlled and vetted by the corrupted EU, while 17 other Member States, they gain more than they put in - they are the reals ones that have it so good more like, not us, but we put in MORE than we get out.

Not sustainable - no thank you, EU is corrupt and I want out of it forever. We can do our own trade, with who we want, when we want and who the hell we want, without the meddling of a toxic union telling us who we can and cannot trade with.

**Damien** · 03-08-2018, 18:40

Interest rates are a red herring here IMO. Best for another thread.

---------- Post added at 18:40 ---------- Previous post was at 18:39 ----------

Quote:

Originally Posted by Mick

This is a joke - we pay in a hefty membership fee for paltry trade agreements that are controlled and vetted by the corrupted EU, while 17 other Member States, they gain more than they put in - they are the reals ones that have it so good more like, not us, but we put in MORE than we get out.

Although the EU does do other trade agreements, i.e the Japan one, by the far the most valuable one is the EU itself.

Sephiroth · 03-08-2018, 21:24

Quote:

Originally Posted by Damien

Interest rates are a red herring here IMO. Best for another thread.

---------- Post added at 18:40 ---------- Previous post was at 18:39 ----------

Although the EU does do other trade agreements, i.e the Japan one, by the far the most valuable one is the EU itself.

I think that is the lazy view. As you know, there is a deep imbalance on trade between the UK and the EU. Wealth generation depends on either reversing that imbalance (Brexit doesn't help but it's there whatever) or increasing our trade elsewhere through our endeavours. We can do that whether or not we are in the EU.