All aboard the EU single monetary policy train. Choo Choo!

[TheAnimus]

http://www.bbc.co.uk/news/business-27717594

The European Central Bank (ECB) has lowered its benchmark interest rate to 0.15% from 0.25% in an effort to stimulate economic growth and avoid deflation in the eurozone.

It has also reduced its deposit rate below zero, to -0.1%, which means commercial banks will have to pay to lodge their money with the central bank, rather than receive interest.

This is very interesting, basically banks are going to be punished for not taking a risk with investor money, even before it's measured in real terms.

This means in real terms, you are going to be punished if you don't take risk with any savings.

The issue here, or rather as I see it, is that you've got some very different economies, with very different stages of economic cycle, and very different control requirements all shorehorned together.

Thankfully we never joined the euro!

[peterb]

Thankfully we never joined the euro!

Indeed, a very fortunate escape. I wonder how long before the euro implodes - despite being shored up by Germany/France?

I hope Alex Salmond has sen that?

[TheAnimus]

If I was a betting man, and TBH I'm no longer following the requisite markets enough. I think we'll see deflation in Spain and Greece within 12 months.

People will be getting upset that the performance of their already invested interests is poor, so will look to stop loss or just no more good money (after the bad they are already in for).

This will be magnified as the rest of the world (and the UK) out perform them.

[santa claus]

[url]Thankfully we never joined the euro!

Thanks to Gordon Brown, the leader of the Labour Government at the time. First time I've heard you thankful to Labour

[peterb]

That must have been after he sold gold reserves at a low, and bought euros St a high, and realised what a mistake he had made.

But I suppose in ten years of financial imprudence, it must be comforting for him to know he got one thing right.

[herulach]

I don't really get how this is supposed to work long term, in order to make something like target2 function theres a huge amount of liquidity held in ECB accounts, so effectively they've either got to exempt that or see everyones payment costs increase. Similarly with things like capital adequacy, I haven't seen german bond prices, but I bet this hasn't done any harm - banks are required to sit on a considerable portion of their balance sheet as cash or near cash

[Top_gun]

That must have been after he sold gold reserves at a low, and bought euros St a high, and realised what a mistake he had made. .

The Tories were gutted too as they couldn't personally hand over the gold to their millionaire buddies.

[peterb]

The Tories were gutted too as they couldn't personally hand over the gold to their millionaire buddies.

Ah, I thought you might pop up

Ah yes, tory millionaires, but lets not forget the champagne socialists - Ed Milliband with his £2.3M house - think that makes him a millionaire, and perhaps why he is not overly enthusiastic about a mansion tax. Margaret hodge is another one, with inherited fortune from her family. And Tony Blair must have made a bit from his varied interests, but then he is hardly a socialist is he?

Nothing wrong with being a millionaire of course, nothing like a bit of inherited cash to ease the ways of political life. And of course those with income from investments will be paying income tax, and be subject to CGT.

http://www.spectator.co.uk/spectator...list-climbing/

[Top_gun]

I see you've already have excuses up your sleeves!!!

[Top_gun]

http://www.bbc.co.uk/news/business-27717594

This is very interesting, basically banks are going to be punished for not taking a risk with investor money, even before it's measured in real terms.

This means in real terms, you are going to be punished if you don't take risk with any savings.

Thankfully we never joined the euro!

Investors money and risks? These banks were given huge amounts of tax payers money to pass on to business as loans. Instead they sat on it and awarded themselves huge bonuses. The idea behind the negative interest rates is to get the banks to lending to business again so that jobs and economy can grow again. The same idea was considered as an option by the current Governor of the Bank of England not so long ago as George Osborne presided over the longest recession in the last 100 years.

[peterb]

I see you've already have excuses up your sleeves!!!

Oh dear, Is that the best you can come up with?

I don't think there is anything to excuse. You make an assertion on what you lie to think the Tories might have done with the gold reserves (although there I'd no evidence to back that up) but we know what Brown did - sell gold reserves at a low and buy euros when they were high.

[Top_gun]

Sorry to disappoint you, I don't do excuse mongering or twist information. But you're good are that though.

The are numerous examples of the Tories asset stripping the country. The Royal Mail was a recent one.

Anyway, gold is on the way down and the perceived gold losses caused by Brown are only paper losses in any case.

[wasabi]

Sorry to disappoint you, I don't do excuse mongering or misrepresenting information. But you're good are that though.

The are numerous examples of the Tories asset stripping the country. The Royal Mail was a recent one.

Asset?. As one of Royal Mail’s largest investors, TCI’s Chris Hohn aptly puts it, “Governments are just about the worst owner of a company you could find. They mismanage them in every way possible. When those companies move from government ownership to privately-owned, these companies transform.”

[peterb]

Sorry to disappoint you, I don't do excuse mongering or twist information.

Really?

.... the perceived gold losses caused by Brown are only paper losses in any case.

Sounds like an excuse to me!

[Smudger]

Asset?. As one of Royal Mail’s largest investors, TCI’s Chris Hohn aptly puts it, “Governments are just about the worst owner of a company you could find. They mismanage them in every way possible. When those companies move from government ownership to privately-owned, these companies transform.”

Person who benefits greatly from privatisation in 'Privatisation is Good' shock.

[opel80uk]

That must have been after he sold gold reserves at a low, and bought euros St a high, and realised what a mistake he had made.

But I suppose in ten years of financial imprudence, it must be comforting for him to know he got one thing right.

The Gold issue is, and has been since the sell off, a good sound bite for those wishing to attack Brown, but it’s actually a bit of a red herring. The estimated losses are always based on the current prices – You seem to base Browns incompetence on his inability to be a soothsayer. The UK Government should not be using the reserve fund to make money, that’s not what it is for, and when people like Osborne claim that Brown’s decision ‘cost the taxpayer money’, it is simply misleading. However, when Royal Mail was sold off by the Tories, the National Audit Office deemed the sale of shares ‘substantially below’ their actual trading price and that DID directly affect the taxpayer. Estimates suggest it was sold around 2.5bn too cheaply. What price is deemed to determine incompetence, or is that just something for Labour Ministers?

Secondly, The UK still has over 300 Tons of gold, and as such, makes sense to me that the Government of the time would attempt to, given that gold prices were at the time continuing to fall, diversify its reserves. Eggs in one basket, and all that.

Thirdly, and here’s the important bit, it now can be reasonably suggested that it was actually a deliberate act to stop a run on US banks short on gold reserves. That version of events is entirely consistent with the fact that the UK announced the gold auction in advance, and even his most ardent opponents would, I imagine, struggle to claim Brown is that stupid. Given that it would have been political dynamite to announce it as the reason the gold was being sold off, it does make sense to me at least.

I’m no fan of Brown, nor the Labour party as a whole – the scramble they make, along with the Tories for the middle ground is nauseating - but I can’t prescribe to the notion that we should never let the facts get in the way of a good Daily Mail headline.