BOE- Rates Lower Than Before ALL Bridges Were Made of Wood, page 1

Well nothing left now for them.

The Bank of England has cut interest rates to 1.5%, the lowest level in its 315-year history, as it continues efforts to aid an economic recovery.

Shares were broadly unchanged following the Bank decision, with the FTSE 100 index down 85 points or 1.9% to 4,423 in early afternoon trading.

BBC

Such a cut was always followed by a huge Rally on the markets not a drop, and this is indicative of the problems.

With the Pound Faltering as a stable Currency, soon to be on parity with the Euro.

No Gold to Back it up or sell.

This will further devalue the pound over time until the Euro becomes a necessity.

The lenders have already stopped passing on any interest rate cuts on Secured Loans as shown by the Nationwide recently.

A further cut would devalue the Pound to levels not seen before in British History.

Investment is fleeing the UK market as the return on any investments is now lower than inflation even with the down turn, reducing its run away direction 24 months ago to around 12 months ago.

One thing left, start printing more queens heads on paper which are becoming quickly as valuable as Postage Stamps rather than a currency.

Depression, followed by Stagflation followed by Hyperinflation if and when any recovery is made.

Lets put this in context

1694

Only 7 yrs had passed since Newton had published about Light, motion and gravity!

About I think 110 yrs before a French man named La Salle claimed the whole Missisipi river for France.

The Industrial revolution had not Stared yet!

Voltaire was born.

Not for another 60 odd years was the Common land status of the entire of the UK stopped under the "Enclosure Act" up until that time Land not owned by a sort of feudal system was "Common" land to all in the UK to use for their wish... so basically Private Ownership and Land Registry of land had not started !!! for another 60 Years!!!!!

No Sub prime Then!

America was still a British Colony!!!!

The war of independence did not start for another 79 years!!!

The French revolution did not happen for nearly another 100 years!!

Australia had been docked in in 1605 by mmmmm Jenzoon??? prob bad spelling but he never went onto land... Australia was still practically a untouched and unclaimed Country.

Napoleon was not born for another 75 Years!!!! he was still a twinkle in Great Grandads eyes.

All textiles and clothes worldwide were produced by hand, except basic looms.

Iron was not smelted with coke for I think another 10 yrs or soo...!!!!

Factories had never been built never mind conceived for another 50 odd years in Northern England!!!!

No Steam Trains had been built, as steam engines were not safe or practical.

No Metal Bridges existed anywhere in the world for another 85 yrs when one was built in the UK in 1779.

All Bridges were Wood!

Britain was in a Civil war only 30 years earlier with the new Model Army Charles and Cromwell

So we have to accept where we are, the oldest Bank of such a type in the world the Bank Of England has put rates at there lowest levels since it's inception,
Before Western Man was even industrialised.

The Have made a decision today in 2009 to put Rates of borrowing and return on savings never before contemplated, even before the first factory was opened,

Before any metal bridges,

When most of the world was still monarchies and Feudal,

Before real Land Ownership except by the Kings and Queens,

Before Steam or any other type of Engine of any workable practical worth.

When America was still a colony and all that has happened in world history since then.

My God only a generation before 1694 Plague was still rampant in the UK and we did not have a sewarage system or clean water, still drinking out of wells sleeping with Rats on stray bales... well the average man.

Two World Wars,
Rationing,
Collapse of the Gold Standard,
The Russian revolution,
Many huge depressions,
The Raj and its Collapse none of this merited such a move.....

Yet its still just called a "Downturn" lol.....,

and many still think it is ok

Yep too right a downturn to the Middle ages almost.

Wake Up

Kind Regards,

Elf

Edit for spelling [1] [2] Title 21.33 08.01.08

[edit on 8-1-2009 by MischeviousElf]

Here is a Link to the a Historical graph showing the rates since the Inception of the BOE in 1694 to present, to big to fit on here, very interesting graph indeed.

Graph By Seeking Aplha

Get your ponies, horses, candles and rat traps out guys lol.

Kind Regards,

Elf

reply to post by MischeviousElf

---

Some bridges where made of stone.....

Originally posted by Rockpuck
reply to post by MischeviousElf

---

Some bridges where made of stone.....

I know I know but I was putting it in for the headline lol...dist seem to work anyhow...

Just trying to make a point Rock, it certainly is telling of the current times, and that through all the history since then the BOE has no power now to change the course we are on, they are scrambling to say the least.

Kind Regards,

Elf.

Originally posted by MischeviousElf
No Gold to Back it up or sell.

Coincidentally...the previous estimate: Brown lost £2bn selling UK's gold

just received a £3BB upgrade:

Gordon Brown's decision to sell half of the UK's gold reserves 'cost UK £5billion'

What Brown did, was create one helluva buying op...one might say he was 'the bottom'.

Good post ME

Originally posted by juggle

Other top banks including Barclays and Royal Bank of Scotland/Natwest, the latter now 58% owned by the taxpayer, declined to follow suit for now.

If the Government owns the majority why havent they dropped the rates in line witth whats going on?

Exactly the banks and commercial organisations are always stating the reason for increases in prices, and lay off's as they hold a responsibility to the shareholders. They have to pay them profit.

Well as the British shareholders are now the main stakeholder, I am sure we if you asked them, 1% more of your income tax for life, or um get evicted and loose your home, or see your families loose theirs, or see a further 30% drop of the value of your property,

They would say We will pay the income tax thank you very much.

Normally the majority shareholder can force a change in the Board, CEO to get their way, but that choice is not being given to the British people.

This should go to Referendum.

It is very true what you say in your post and very telling.

reply to post by OBE1

---

Good point, I did see that but failed to mention it. The true cost I am afraid will spiral beyond belief, especially when they star printing more worthless paper and the effects of what started many years ago, but reared its head late last year come home to roost for many.

Its like a rolling stone.

An old saying in economics is as follows

By the time you see the whites of the eyes of Depression it's too late to do anything about it

Worrying times for us all, and our children, and their children indeed.

Kind regards,

Elf.

[edit on 9-1-2009 by MischeviousElf]

Well this OP was one month ago,

They keep sliding as today

UK reduces interest rates to 1%

The Bank of England has reduced interest rates to a record low of 1% from 1.5%, in an attempt to boost the shrinking economy.

This marks the fifth interest rate cut since October, as the Bank seeks to encourage more lending.

However, there are concerns that savers will be hurt by lower interest rates.

And business groups argue that this rate reduction will not be enough to ease the economic crisis, and will not encourage banks to lend.

The decision comes after official data showed the UK had entered a recession in December, after two successive quarters of economic contraction.

BBC

This is on top of Browns obvious official recognition that the world is now in a depression, or his insistance that centralisation is the only way out, yeah well right that got us into it anyhow with swaps etc,

ATS PM Britain/World now in "Depression"

1% left to go, 2 rate cuts or 2 months then spring proper in UK, interest rates at Zero, no jobs, more closures then the "Mad Dog English Summer" days with no option but to pump up the printing presses, and set in process to hyperinflate the £ and endebten even more the generations to come and us, making our savings worth less, and house prices lower again.

Good Luck Chaps,

Pint of Pennies anyone?

Elf.

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