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Falk,
"DUBAI (Reuters) - Saudi Arabia expects its budget deficit to widen to 187 billion riyals ($49.86 billion), or 6.5% of gross domestic product (GDP), next year from a projected 131 billion riyals for this year, or 4.7% of GDP, the finance minister said on Thursday, as lower oil prices hit revenues."
https://www.reuters.com/article/us-saudi-economy-budget-idUSKBN1XA2EO
It has been rammed down our throats our budget deficit shouldn't exceed 2% of GDP , yet Saudis is +3 times such amount . Where are they going to find the monies to pay us back ? Never mind Saudis , but the rest of oil producing nations , bar Russia .
I do acknowledge they hold $600 BN of US debt , but in this climate it wouldn't be adviceable to offload .
Read up on Dutch Syndrome
https://www.investopedia.com/terms/d/dutchdisease.asp
Falk,
Your comments suggest you are willing to profit from other folks misery and hardship , the ugly face of Capitalism , which normal human beings would clas as unethical .
The days of fossil fuels are numbered , hence why Brent won't spike regardless of turmoil in ME . The Arabians know this , hence why they're moving their monies westwards . Due to the salt content in their beautiful buildings , these only have a lifespan of 50 yrs . 20 yrs from now Dubai , Abhu Dhabi , Bahrain will be non entities on the Global sphere .
Ask yourself why Trump is being nominated for the Nobel Peace Prize , having brought recognition of the State of Israel by UAE and Barhrain and soon Oman also . Adversity and lack of natural resources has forced the Hebrews to turn their nation into a technological hub , an example which we should mimic ! This should be confirmation that Arabic countries standing on the International theatre are numbered .
More Crude is produced than consumed , even prior to CV , hence why I told LTI he was making a mistake investing in Oilies many moons back .
In a respectful manner ! You do need to do some more research .
Shrimper. "European Banks have still managed good profits and the euro zone area has had negative interest rates for around 5 years now ."
And the share prices?? Don't make the mistake profits = higher prices, they don't.
2015 was the year realization that shrinking CB balance sheets and back to normal was pie in the sky.
Was the signal to get out of dodge. Now you're paying the price, while the bandit baths in champagne scoffing caviar.
Falk,
Where's the liquidity going to come from to stimulate Western Economies out of these doldrums ?
I've already given my views on the above, however DT you haven't.
Instead you keep 'grasping at straws' to continually post what you perceive to be pessimistic doom towards lloyds bank, to what end, who knows.
I thought this interest rate had been done to death on here, everyone who is involved here is aware, how long can you string it out?
This latest offering must be true, its the BBC after all, actually you're getting more like the BBC lol.
You should lighten up a bit DT investing should include some highs it's not all doom.
Hope I've elaborated enough.
“ Flexible Average Inflation Targeting (FAIT) “
What a missed opportunity!
I would have gone with:
Flexible Average Rate Targeting (FART)
This guys advice to banks when C-19 hit UK shores was to “Play up the downside & Play down the upside” the guy is not exactly hard to read…he does have a plan I would be worried if he did not have a plan and them plans include negative rates…
DYOR
TFE,
"The Fed's failure to reach its inflation target - which prompted the US central bank to radically overhaul its monetary dogma last month and unveil Flexible Average Inflation Targeting (or FAIT) whereby the Fed will allow inflation to run hot without hiking rates - has sparked broad criticism from the economic establishment, even though as we showed in June, deflation is now a direct function of the Fed's unconventional monetary policies as the lower yields slide, the lower the propensity to spend. In other words, the harder the Fed fights to stimulate inflation, the more deflation and more saving it spurs as a result (incidentally this is not the first time this "discovery" was made, in December we wrote "One Bank Makes A Stunning Discovery - The Fed's Rate Cuts Are Now Deflationary")."
https://www.zerohedge.com/markets/loretta-mester-hints-fed-preparing-deposit-digital-dollars-directly-each-american
NIRP is a given , as I mentioned last week Barc phoned me last week to tell me any further borrowing would be done @ +50 bp , they're staying ahead of the curve . Not good for bank profits
1 thing wrong dt ,an article by the BBC ,they invented jackanory ,and they still broadcast it
“Plan” is misleading.
There is no plan, which would imply intent.
“ Her remarks come days after BOE Governor Andrew Bailey played down the prospect of such a policy any time soon. He said it is in the toolbox but that ‘doesn’t imply anything about the probability of us using it.’ ”
Part of the BoEs role is to guide money markets and sometimes the threat of something is all that’s needed to get the outcome you want.
www.bloomberg.com/amp/news/articles/2020-09-27/boe-s-tenreyro-sees-encouraging-evidence-on-negative-rates
TFE,
"Grasping at straws again."
Please elaborate..?
Here is the link to the article which may be of interest to others, as this is not only current but is also relevent to the banking sector; therefore fail to understand a throw away comment such as yours, ""Grasping at straws again."...
https://www.bbc.co.uk/news/business-54314971
DYOR
Grasping at straws again.
The UK will more or less follow the FED, interest rates to stay as they are until inflation is firmly established in an upward trend.
DYOR.
European Banks have still managed good profits and the euro zone area has had negative interest rates for around 5 years now .
Bank of England policymaker defends plan.....
A Bank of England (BoE) policymaker has defended the potential use of negative interest rates, which could take the cost of borrowing below zero.
Silvana Tenreyro told the Sunday Telegraph that evidence from other countries was "encouraging".
DYOR...