Comments on: Devaluation versus Capital Flight https://www.golemxiv.co.uk/2010/05/devaluation-versus-capital-flight/ Author of THE DEBT GENERATION Thu, 06 May 2021 15:37:42 +0000 hourly 1 https://wordpress.org/?v=6.7.1 By: Golem XIV - Thoughts https://www.golemxiv.co.uk/2010/05/devaluation-versus-capital-flight/#comment-344 Mon, 24 May 2010 09:25:44 +0000 http://www.golemxiv.co.uk/2010/05/devaluation-versus-capital-flight/#comment-344 Hello, Pro,

So why do you think they are keeping the rate so low for so long? I'd be intertested to hear your thoughts. Seems like housing and bank loans still. Protect those bad loans and the banks that still hold them at all costs – even at the risk of a run on the pound and borrowing rates.

What do you think?

]]> By: theprofromdover https://www.golemxiv.co.uk/2010/05/devaluation-versus-capital-flight/#comment-343 Mon, 24 May 2010 09:12:14 +0000 http://www.golemxiv.co.uk/2010/05/devaluation-versus-capital-flight/#comment-343 If the UK would just raise interest rates to 5%, squeeze the banks to a more honourable 2% margin on the vig, the UK might escape being next in line for a good kicking.
Joe Public can handle 5%, that used to be a good rate.

Foreign money would come back into the UK (Merv. seems to have held his reputation for some reason), the exchange rate would improve * and import costs would drop.

(* Anyone that says we need a lower exchange rate to help our exports is a good few years ahead of himself -we don't export much in manufactured goods, and we import absolutely everything, from cars to courgettes.)

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