MercoPress. South Atlantic News Agency
Bank of England enthusiastic about UK recovery, according to November minutes
The UK is in a sustained recovery and does not face major inflation risks, Bank of England policymakers have said. Minutes from the Monetary Policy Committee's November meeting showed the nine members all voted to leave interest rates at 0.5%. Read full article
Comments
Disclaimer & comment rulesA good economic success story from the south american news agency, shame it isn't in south america.
Nov 20th, 2013 - 09:39 pm - Link - Report abuse 0I just wonder what are your parameters to call this “A good economic success story”????
Nov 20th, 2013 - 10:44 pm - Link - Report abuse 0Just a stagnated economy having a little summer driven by pumped money from BoE (QE) and properties prices rising from cheap credits.
But wait a minute it is not the same formula that dragged Ukistan into this mess???
Meanwhile in the real world more bad news from the Dark Kingdom
External debt until dec 31 2012 : U$s 10.09 trillion
Trade deficit until dec 31 2012: -U$s 168bn (wow this looks as a huge hole)
Nothing new the Titanic steady heading to the iceberg...
Don't worry about us, we are doing ok:
Nov 20th, 2013 - 11:18 pm - Link - Report abuse 0http://www.telegraph.co.uk/finance/economics/10457384/UK-growing-at-fastest-rate-in-developed-world-says-OECD.html
I can cope with 0.5% interest rates and 2% inflation, we are well on the road to full recovery and we pay our debts.
I always laugh at people that look at things like external debt but then refuse to look at assets.
Nov 21st, 2013 - 12:05 am - Link - Report abuse 0@ 2 Dany“TheFinancialGenius”Berger
Nov 21st, 2013 - 03:08 am - Link - Report abuse 0The UK GDP is?
- and 0.8% (3 months growth) of UK GDP is?
- and 1.5% (annual growth) of UK GDP is?
The UK assets are?
@5
Nov 21st, 2013 - 03:23 am - Link - Report abuse 0The UK debt is?
http://www.debtbombshell.com/
UK GDP U$s2.44 trillions 1.5% growth is U$s36.6 billions
Nov 21st, 2013 - 04:46 am - Link - Report abuse 0ARG GDP U$s500 billions 4.7% growth is U$s23.5 billions
UK trade deficit: -U$s 168 billions (red)
Argentina trade surplus: U$s 15,65 billions
UK external debt U$s 10.09 trillion (2012)
Arg external debt U$s141 billions (2012)
UK Public debt (in local currency): U$s2.19 trillions
ARG public debt (in local currency): U$s218 billions
Can you see how your macro numbers are so bad and scariest?
“The UK assets are?” ????
Do you think this is mortgage loan or what????
What do you mean by asking “The UK assets are?”
Oh I just love Dany's take on economics.
Nov 21st, 2013 - 07:10 am - Link - Report abuse 0You can see he tries so hard and yet doesn't understand a thing sometimes. Misses the proverbial forest for the trees.
What assets he asks?
Is the UK just an island bereft of any sort of structure or industry?
What assets he asks?
What did the UK do? Borrow US$10.09 trillion and do nothing with it? Did it just burn the money in the streets?
Sometimes it is difficult for simpletons to actually work out what they are talking about. So let's try. If I earn $100,000 per year and I borrow $100,000 then I owe 100% of my annual income.
Now if I just put that money in a safe and don't touch it, I am then $100,000 in debt but because I still have the entire $100,000 I have not increased nor decreased my assets. One cancels out the other.
Now if I take this US$100,000 and buy a house then while I still owe US$100,000, I have a different asset worth $100,000. So again I have not increased nor decreased my assets. The only difference is that I pay interest on the loan - let's say 5% - so I need to pay at least $5,000 per year to keep my assets and liabilities balanced.
Let's say that owning this house allows me to do a side-business on the weekends which helps me earn $10,000 more per year. So what has happened?
I owe $100,000
I have a $100,000 asset
I pay $5,000 per year to keep this asset and liability balanced.
And yet now I earn $10,000 more.
So I borrowed $100,000 but am now $5,000 richer per year.
So if you only look at one side of the ledger then all you see is that I owe $100,000.
But that only gives half the story doesn't it now.
And what happens if the house is worth $102,000 at the end of the year?
So I take my extra $5,000 and pay down the mortgage.
I now owe $95,000
I have a $102,000 asset.
I have increased my assets by $7,000.
With the same variables after 2 years, I have increased my assets by $14,000.
After 10 years? Well I owe $50,000 and my house is worth $120,000.
$70,000 increase!
Economics 101
@Anglotino
Nov 21st, 2013 - 08:32 am - Link - Report abuse 0No, no no and nope...
Sorry mate but the only one that doesn’t understand economy here is you.
Here a real example how this works
I set up a headquarter office in London to rise capital, banks lend money to me that they have been rising from abroad (china for example) in US dollars (external debt). I use this capital to finance exploration offshore in FI for example.
Interest rates goes up, a bank fails to meet repayments or someone sneezes and a run of bank starts like in 2007, etc. remember?
What would happen here?
UK govt is going to expropriate me to cover the bank loans taken abroad by these banks?
Nope they can’t.
So you will have bailouts again and UK govt will have to save the banks as happened before because external lenders otherwise will stop to lean money to UK anymore.
Always even is not explicit the warranty of an external lender is the ability of govt to take care of the external debt by its taxation system.
Why do you think Spain, Greece, Ireland, Iceland, US, etc are suffering for the external debt?
Most of these debts have been created by privates corps. and not the govts but if they don’t take care of the external debt they will remain without any economy to save.
Because all are heavy indebted and need constant influx of money to finance every day surviving.
Do you think that little UK has more assets than US, Canada, Russia, Brazil, Australia or Argentina?
Hey mate Argentina holds the 8th largest richest mass of land in the world and went burst by just 90bn.
Just to make a rough calculation if Argentina would be totally empty and just only land and will use the ridiculous price of U$s5000 for each hectare that will cost U$s14 trillion dollars.
But in reality Buenos Aires city alone will cost much, much, more than that. Ha ha
So do you think Argentina can get 300 trillions dollars in loans according with her assets?
Its is a little empire you know?
Ha ha
Well you might be right Day, who knows.
Nov 21st, 2013 - 08:54 am - Link - Report abuse 0Unfortunately you have no credibility:
“I have video of English people eating rats” *
“In Argentina all corrupts go to jail”
“The Bbc control all the media in the UK”.
* Black Adder is a fictional comedy programme.
@Orbit
Nov 21st, 2013 - 09:48 am - Link - Report abuse 0Well to be honest I don’t care if I have or not credibility on me because simply I’m not trying to sell anything to you or others.
You have just my facts and you can reasoning them and make your own conclusion.
Smartest people learn from other people experiences and mistakes...
Smart people just learn from own experiences and mistakes...
Stupid people never learn... and just trust on other people
Umm in with of the listed above do you think you are????
Touch the screen, touch the screen...
Jesus He Knows Me
http://www.youtube.com/watch?v=EprQGmZ3Imw
So pray tell Dany why doesn't the whole world see this?
Nov 21st, 2013 - 10:49 am - Link - Report abuse 0If this is so well known and so easy to work out, why do people still lend money to the UK?
If the UK has got it so wrong and Argentina has got it so right, then why can only you see it?
Why is it that Argentina can't seem to get many loans and inward investment?
Why can Argentina only attract US$111 billion of inward FDI stock and the UK seems to have managed US$1.3 trillion?
Why does Argentina which is managed so well enduring 25% inflation and the UK seems to have no problem at 2.2%?
With so many natural resources and the 8th largest richest mass of land in the world does Argentina run down its reserves to pay for energy imports?
The UK can afford to fight wars in Afghanistan and Iraq and Argentina has ships sinking in port!
Why does Argentina have net outward migration and the UK have net inward migration?
Why after all that, did Argentina go bust and the UK still has yet to go bust?
Why oh why doesn't it happen? Why Dany? Why doesn't the UK have all the financial problems that Argentina did and does?
You are so busy concentrating on a small tiny part of the equation that you miss the big picture.
Which surprises no one on here.
Why Dany, I thank you for your concern, facts and reasoning.
Nov 21st, 2013 - 11:38 am - Link - Report abuse 0Unfortunately when you talk gibberish most of the time, people have a hard time believing you when you suddenly claim to be all truthful and accurate.
Anyway, far from putting my head in the sand, taking advantage of low interest rates to pay off my mortgage early, and spreading my investment portfolio across asset classes, currencies and countries has gone some way to being prudent, despite vaguely believing that the powers that be are trying to do the right thing. Hope that alleviates your concerns.
So, now that we have that all cleared up, perhaps we can turn your considerable powers of analysis to the Argentine economy. How does Marxism go again ? Have you shunned bourgeois ideals of family, religion, personal achievement and reached your State owned Utopian dream yet?
Joking aside, you talk about learning from mistakes. And yet... An avowed Marxist? Seriously?
I love the smell of argy envy in the morning .. :)
Nov 21st, 2013 - 11:51 am - Link - Report abuse 0The truth is that the UK probably contributed most to the credit crisis in 2008, due to our unregulated banks. As a result we have suffered most from it, not on the same level as the PIGS countries, but things have been tough none the less.
Nov 21st, 2013 - 01:06 pm - Link - Report abuse 0The difference is that we have also learnt the most from it and as a result we are now recovering the fastest from it.
@Anglotino
Nov 22nd, 2013 - 12:37 am - Link - Report abuse 0First FDI have different explanations like M&A and tricky investment and real investment like a new factory for example. But we are not seen new factories in UK do we?
So while Britons are selling assets foreigners are buying it and that is reflected as FDI.
Other thing is that UK had only received U$s62bn in 2012 in FDI concept an increase of 22% from 2011 while Argentina increased FDI in 27% receiving US$ 12.55bn.
So as you can see U$s62bn in FDI received for an economy of U$s2.4 trillions GDP seem not to be an spectacular performance compared with a economy of U$s500bn receiving U$s12.55bn in fact is the same performance in relation with the respective GDPs. In other words UK receives 5 time more FDI because its economy is 5 time bigger. That’s all.
But U$s 1.3 trillions investment owned by foreigners in UK vs U$s111bn in Argentina explains who runs the economy in respective countries. While U$s1.3 trillions represents more than a half of the UK GDP U$s 111bn in Argentina only represents 1/5 of its GDP.
“Why does Argentina which is managed so well enduring 25% inflation and the UK seems to have no problem at 2.2%?”
first inflation is not 25% but this is another discussion, so lets pass over it.
The explanation is quite simple.. while Argentina economy is expanded and reached full production capacity UK was shrinking and now anaemic so how is going to rise prices if none is buying in UK?
See how housing price rise in UK just with a little sign of demand boosted by UK govt incentives.
“With so many natural resources and the 8th largest richest mass of land in the world does Argentina run down its reserves to pay for energy imports?”
Because the big oil company YPF previous state ran was sold to the corrupts Spanish and they were milking the company for more than 20 years to expand Repsol operation abroad without investing a penny in exploration or anything in Argentina.
running out of chars...
But I still can say that you didn't learnt...
#16 Bit rich to talk about debt isn't it Dany? Argentina is not currently crushed by debt because it reneged on it.
Nov 22nd, 2013 - 08:32 am - Link - Report abuse 0I'll ask again though, what is it that the UK did to you?
@inthegutter
Nov 22nd, 2013 - 09:45 am - Link - Report abuse 0The legal right term is “debt restructuring process” also “haircut” colloquially known, etc.
Lets say the same thing UK had done in the ’30 do you remember?
The default on war loans bonds... no yet?
“I'll ask again though, what is it that the UK did to you?”
And why do you think UK had done something to me in the first place?
We are talking about economy and facts and UK economy is pretty bad and in intensive care...
Any other question?
The UK did not default on war bonds. As far as I can tell what you are referring to is the 1932 action when the government called in the 5% War Loan offering either the cash value or a new bond at 3.5%. This was entirely within the terms of the loan and is not really comparable to Argentina's “restructuring”.
Nov 22nd, 2013 - 10:12 am - Link - Report abuse 0The reason why I ask is that in numerous other threads you continually denigrate the achievements of the UK, while calling for the inhabitants of the Falklands to be subjugated by a foreign power (i.e. against their wishes).
@inthegutter
Nov 22nd, 2013 - 03:10 pm - Link - Report abuse 0This was a default and restructured debt and is listed in the best seller
book about financial Crisis called “This Time is Different: Eight Centuries of Financial Folly” wrote by Professor Reinhart (University of Maryland and Harvard) also senior researcher at IMF, etc and Kenneth Rogoff former Chief economist of IMF and professor at Harvard University.
But UK had defaulted at least 3 times in History with Italian Bankers, with Americans, etc.
Anyway as you probably know by now having a good past credit record does not mean that your are not going to default or will not have a problem with the debtor.
Do you know someone that had born with bad past credit record?
So the question here is not if UK will default otherwise when...
“you continually denigrate the achievements of the UK”
What achievements are you talking about?
Cooking books and fancy accounting?
#20 It appears you're right about the UK defaulting 3 times in the past: http://en.wikipedia.org/wiki/List_of_sovereign_defaults
Nov 22nd, 2013 - 07:30 pm - Link - Report abuse 0Curiously though, your two favourite countries (Germany* and Argentina) have in fact defaulted more times, and more recently, in the same time period. *Counting the component states of the German Confederation.
“What achievements are you talking about?” We've already had this argument. The scientific and technical achievements of the UK surpass any other country. The military achievements of the UK also surpass other countries.
@inthegutter
Nov 23rd, 2013 - 12:55 am - Link - Report abuse 0Oh! boy you always talking about the past and all arguable, etc.
The Greeks have archived more than you and look where they are now...
And you call them PIGs for their economy problems.
Can you see?
None respect past glories and achievements on these days...
SYL
@22 Dany
Nov 23rd, 2013 - 02:18 am - Link - Report abuse 0Ah, but did those smartypants Greeks invent soccer? Hmm? All philosophising and no exercise makes Dany a dull boy. All those generations of Argentines enjoying 'the beautiful game'. That one invention alone ought to be enough for you to give the Brits a break.
#22 Deflection as usual Dany, pathetic.
Nov 23rd, 2013 - 06:37 am - Link - Report abuse 0I don't call the Greeks anything for their problems. If the Greeks laid the foundations of the modern world, then the British then went and built it.
Moreover, while the Empire is rightly gone, and the UK has relatively declined (nothing wrong with this) British science continues to amongst the best in world, especially my field ;)
@Heisenbergcontext
Nov 23rd, 2013 - 09:40 am - Link - Report abuse 0Soccer is a Chinese game invention played by Chinese soldiers (Tsu-Chu) imported by Marco Polo to Europe like the Pasta and powder gun among many things.
Also from Greek and Roman era they play sports like Hand ball, base ball and what is kwon today as rugby (Episkyros).
Olympic games tell you something about it?
No luck with your British invention I guess. Then of course we Germans invented car, internal explosion engine, the press, jets, guide bombs, missiles, rockets, cryptography machines for communication, etc, etc.
@inthegutter
really?
Where?
You cannot even compete with the Argies in some fields like in Nuclear medicine, Nuclear reactors, Sats,
food production, etc.
I love the part on British invention where you claim to have invented forensic fingerprints that was and Agie invention by Vucetich.
Ah! Pirates always stealing from other people, just wonder why?
Ha ha ha
BTW what is you field???
#25 In terms of football, the game we play today was first codified by the English. Of course that not to say that people hadn't kicked a ball about before.
Nov 23rd, 2013 - 03:33 pm - Link - Report abuse 0As I pointed out before:
- the Germans did not invent the internal combustion engine (the closest you can get to a single inventor was Lenoir).
- the Jet Engine was first unambiguously invented by Frank Whittle.
- Germans did not invent cryptography, and the British also demonstrated in WWII that the German's weren't even very good at it either.
- Though the Germans did first utilise guided bombs (to kill civilians) they did not invent rockets (the Chinese), or missiles.
With regards to finger-printing, people, including the British, were using finger-prints for decades before Vucetich (although I never claimed this as a British invention). Although I admit Vucetich with the first using a finger-print to get someone convicted.
To expand upon my list of actual British inventions and discoveries that I gave before:
- The first commercial nuclear reactor.
- Charles Babbage invented the first mechanical computer, Ada Lovelace was the first “computer programmer”, Alan Turing was “the father of modern computer science”, Tim Berners Lee invented the “World Wide Web” etc.
One thing the Argentines did invent though:
- A claim to the Falklands.
To answer your question, I'm an astrophysicist (specifically working on Galaxy Formation and Evolution).
I think it's funny that a German immigrant to Argentina (correct me if I'm wrong here) calls the Brits Pirates. Argentines squat on land entirely stolen from native inhabitants by a imperialist power, and Germany... well, we all know what that country is most famous for.
@inthegutter
Nov 24th, 2013 - 04:46 am - Link - Report abuse 0The first efficient and functional internal explosion engine burning compressed fuel directly in a piston chamber ever made in the world was built by Nikolaus August Otto (Otto engine) and Eugen Langen that uses the same principle that modern engines use today (Otto cycle).
Also they founded the first internal combustion engine factory in the world.
Then you have many claiming same invention even an Italian who was the first to think in the use of the energy liberated by an explosion into a chamber to produce power in a engine.
I never said that Germans have invented cryptography, because this is older concept and was in use in the Middle East, Northern Africa, Greece, etc. for a millennia before.
Otherwise what I said was “Machines for communication using cryptography”.
BTW what kind of science invention is a “commercial nuclear reactor” what you mean by this?
So I buy a nuclear powered submarine and then I put and add on Ebay and I become inventor of the first commercial Nuclear power submarine?
Anyway this is a useless conversation and doesn’t prove any point of the contribution of science for this or that country.
“astrophysicist (specifically working on Galaxy Formation and Evolution).”
So can you tell me when the sun will turn into a super nova and by it own wasted fuel weight will implode creating a black hole pleaseeeeee.
Any chance to buy a ticket to other galaxy or we will be in oven?
I start to make sense of religious people when they say “from dust we came and to dust we return”
Ha ha
“So can you tell me when the sun will turn into a super nova and by it own wasted fuel weight will implode creating a black hole pleaseeeeee.”
Nov 24th, 2013 - 07:42 am - Link - Report abuse 0Short answer: Never. Long answer, under the assumption you're being sarcastic about the value of astrophysics: what we've learnt from studying the Universe has had a direct transfer to “applied physics”.
But again, why do you hate the UK so much you want to see the Falklanders subjugated?
@inthegutter
Nov 24th, 2013 - 05:24 pm - Link - Report abuse 0“But again, why do you hate the UK so much”
Did I say that I hate UK?
Why should I?
Is that your impression because I don’t agree with your (not your in particular but in general) tales about fantasyland UK?
“you want to see the Falklanders subjugated?”
Did I say that?
Why should I?
Can you tell me please, how did you arrive to that conclusion?
Or where I say that I want the Islanders reduced to submission?
SYL
#29
Nov 25th, 2013 - 11:17 am - Link - Report abuse 0Your dislike of the UK comes across in your posts. Why would you bother commenting about how rubbish the UK apparently is if your not emotionally connected?
As for the Falklands, do you believe Argentina should have sovereignty over the islands? The current inhabitants do not want this and thus Argentine control would be subjugation.
Of course you could probably weasel out of this by stating that you want to Argentina to hold sovereignty over the islands, not the islanders.
@ inthegutter
Nov 25th, 2013 - 06:43 pm - Link - Report abuse 0“Why would you bother commenting about how rubbish the UK apparently is if your not emotionally connected?”
So according with your theory you should be emotionally connected with Argentina?
Lets reverse your questions.
Why you hate so much the Argentines?
What they have done to you to steal their assets?
Why you have always problems of this kind around the world?
And Gibraltar?
And Diego Garcia?
BTW why you always are asking me my opinions about FI Islanders and not about Diego Garcia Islanders, why?
Do you think that what UK had done to these people was right?
Do you think Black holes in space have Entropy, why?
Waiting for your answers professor..
SYL
#31 Childish diversion Dany - I see you didn't even answer my question.
Nov 25th, 2013 - 07:11 pm - Link - Report abuse 0I have an emotional connection to the Falklands and do not like Argentina's treatment of the islands. That and a general interest in the islands is why I comment here. I don't hate Argentines, though I admit I am, like I'm sure many Argentines are, close to hating their current government for their actions against the Falklanders. Is that clear enough?
“Steal their assets?” - Bullshit, we both know that the “assets” belong to the Falklanders. The British claimed the Falklands long before Argentina existed.
The current inhabitants of Gibraltar can decide what they want. I don't believe that time should be turned back arbitrarily like you do. As for Diego Garcia I believe the actions were wrong though justified given the cold war. The inhabitants were compensated and let's not forget them remaining on DG would have been untenable (no source of fresh water). As such it is not exactly like the situation on the Falklands.
I'll leave the black holes question for my better equipped colleagues, I'm more on the observational/instrumentation side and not a theorist. Also, by the UK academic hierarchy I'm not yet a Professor.
Is that all? Care to answer my question about the Falklands since I answered most of yours?
@inthegutter
Nov 26th, 2013 - 12:37 am - Link - Report abuse 0Well I have an emotional connection with Argentina because is the nation where I live and I also don’t like the way Britain treats and denies the rights of other nations.
I also believe in self-determination of the Argentineans to exercise their rights and power to get back what belongs to them.
British explanations of their rights over the Islands don’t convince me as the 90% of the world.
Just discoveries and finding empty places no enough for me I found an empty place in Dover and I didn’t claim for me.
“The British claimed the Falklands long before Argentina existed.”
That is not true because not even Britain existed at that time with your logic because Argentina is a formal name and if you are taking this as your best argument Britain formal country name is “United Kingdom of Great Britain and Northern Ireland”. This didn’t exist before Argentina as a nation as you have to refer to the recognition of the last act of annexation of Northern Ireland dating from 1922.
“The inhabitants were compensated and let's not forget them remaining on DG would have been untenable (no source of fresh water). As such it is not exactly like the situation on the Falklands”
Well so you admit that Argentina can do the same to the FI Islanders in the same way as UK did to DG Islanders.
If that was fair for the DG Islanders also will be fair for FI Islanders.
Do you agree with that?
By the way Black Holes have Entropy and it is proportional to the area of its event horizon otherwise will contradict de second law of thermodynamics.
Waiting for your answer.
SYL
#33
Nov 26th, 2013 - 07:06 am - Link - Report abuse 0Argentina occupied islands claimed by the UK (or technically England) for a month, they were kicked out and have been peacefully inhabited for almost 200 years give or take a couple of months. How you can suggest Argentina has rights over these islands today is beyond me.
But as you're so fond of doing let me “turn the question round” - should Argentina return the vast parts of Patagonia colonised and usurped from the Natives since independence? How about the large part of Paraguay stolen during the Paraguayan War? How is this different?
Don't straw man me when it comes to DG. Not only did I say it wasn't right but I also pointed out it was different. Not only due to different circumstances: the islanders were tenants (not native and not given ownership) and were working for a company bought by the British government and there is no fresh water. Further it was 50 years ago, in the height of the cold war.
The Argentine government should just forget about this and get on with doing something useful, though of course irrendtism, however unjustified, is always a useful distraction for the masses.
@inthegutter
Nov 26th, 2013 - 11:15 pm - Link - Report abuse 0“claimed by the UK (or technically England)”
And how you suggest that these Islands belongs to “United Kingdom of Great Britain and Northern Ireland” if this nation didn’t exit before Argentina and England is not an independent and sovereign state since 1707 when her signed the act of Union?
“But as you're so fond of doing let me “turn the question round” - should Argentina return the vast parts of Patagonia colonised and usurped from the Natives since independence? How about the large part of Paraguay stolen during the Paraguayan War? How is this different?”
Of course is different because none claims Patagonia, or any other territory to Argentina among other technical matters.
Well suppose Argentina will supply fresh water, free housing and 1 car for each DG Islander will you return the land to them back?
You have not change to win with any argument against the strong claim of Argentina because you shoot in your foot any time you try.
So your only argument left is Self Determination but this also applies for Argentineans so lets make a referendum including the Argentineans and the Islanders desire they own future about the Islands.
Ha ha
“The Argentine government should just forget”
Really?
I guess that that will never happen...
SYL and keep watching the stars, galaxies and planets y you find something new ring me please...
“Of course is different because none claims Patagonia, or any other territory to Argentina among other technical matters.”
Nov 27th, 2013 - 07:42 am - Link - Report abuse 0That's because unlike Argentina, Paraguay has moved on and understands this is the 21st century.
I really do feel sorry for you, Argentina is never going to get the Falklands. Isn't it evident that the Argentine government doesn't even want them? They haven't taken their demands to the one organisation that could help them, the ICJ. That's a little odd isn't it? Of course it could just be that they're busy making up new lies to tell them.
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!