Cyprus-Forum.com

[Paphitis]

In the USA and Australia and also in the UK, our Central Banks do print money and they have done that forever.

Our Central Banks raise and reduce interest rates and control lending. They control the pace of inflation and the rate our economies grow or decline. Right now, they are trying to stimulate our economies by reducing borrowing costs. Thanks to our Central banks and their managment, our economies have been growing in adverse headwind conditions.

I agree with this completely. It serves us well and we are lucky to have complete control of our fiscal and monetary policies.

If Greece and Cyprus had this power they would not have had as big a disaster as they did during the GFC.

Your Central Bank does it, but in the end it's upto the private Banks themselves to set their own interest rates.
The same happens in the Eurozone. And the interest rates for loans today are remarkably low.
However the private Banks are very hesitant in giving loans...

If Greece and Cyprus had this power they would simply collapse later...
Nobody can leave on loans forever.

Oh I think you will find that the Central Banks have a lot of control and dictate the interests rates of all the Banks.

There has been cases where 1 or 2 banks have not passed on the full rate cuts or did not raise interests rates but the repercussions from the Central Banks are massive fines, because when the Banks do that, they undermine Central Bank fiscal policy and measures designed to achieve an outcome. Most of the time, the Banks have however passed on the full adjustment, because there is usually a backlash if they don't and they lose customers as well.

People in the USA and Australia change financiers regularly. It's very cheap to do and depending on the discounted rate, you can save thousands per year so the Banks are very conscious about their competitiveness and the market is very competitive.

There is a reason why a Central Bank moves interest rates. they don't do it for fun.

Are you claiming the Central Bank dictates the private Banks the exact figure of what their own interest rates should be?

The Central Bank dictates the interest level or cost of money.

From there, the Banks only add between 1 to 1.5% margin on forward lending to the consumer (that's the home loan rate). Business Loans are slightly more dearer.

Also, personal loans and things like car loans are dearer again and credit cards are also dearer as well.

Currently, the Central Bank has set interest rates in Australia at 1.25%. They plan to cut them to 1% in the next month or so, in which case we get letters from the Banks that our variable rates are also reduced by 0.25% across the board.

I have only witnessed by Bank not reduce all of the rate cut entirely once in the last 10 years. I threatened them to refinance and they sent me a letter reducing my rate a further 0.125%. One time I told them I intended to finance and they gave me a bigger discount than the Reserve Bank cut. They went over and beyond.

I owe 7 figures.

[cyprusgrump]

You are going round in circles: Answer the simple question why isn't Italy leaving the Euro currency?

Are they allowed...?

Serious question.

New EU members must join the €uro, are the current members allowed to leave it...?

[erolz66]

You are going round in circles: Answer the simple question why isn't Italy leaving the Euro currency?

Are they allowed...?

Serious question.

New EU members must join the €uro, are the current members allowed to leave it...?

There is no pre built legal mechanism by which a eurozone member country can leave the eurozone and reinstate its old currency (just as there is none for scotland to leave the sterling zone) and there is no precedent in a country doing so. However countries remain sovereign even within the eurozone and the EU and ultimately can decide to do so, as Greece threatened to do but did not in the end pull the trigger on.

https://en.wikipedia.org/wiki/Withdrawa ... e_Eurozone

[Lordo]

anyway so has this brexshit lark affected thomas cook travel company.
has the drop in the sterling had any bearing on its collapse?

[Londonrake]

anyway so has this brexshit lark affected thomas cook travel company.
has the drop in the sterling had any bearing on its collapse?

I’m beginning to wonder if Milti’s taken over writing your posts. No, that can’t be, he can do English.

How do you arrange your holidays these days? Go to a travel agent? More likely the same way as me I suspect. Tap, tap, tap. Get it?

That technological change, coupled to the fact they undertook what turned out to be a disastrous merger with MyTravel, saddling them with a huge debt that ultimately they couldn’t service, precipitated their demise. Now they’re in the hereafter, with the likes of Woolworths, HMV and BHS, having suffered the same fate.

[cyprusgrump]

anyway so has this brexshit lark affected thomas cook travel company.
has the drop in the sterling had any bearing on its collapse?

I’m beginning to wonder if Milti’s taken over writing your posts. No, that can’t be, he can do English.

How do you arrange your holidays these days? Go to a travel agent? More likely the same way as me I suspect. Tap, tap, tap. Get it?

That technological change, coupled to the fact they undertook what turned out to be a disastrous merger with MyTravel, saddling them with a huge debt that ultimately they couldn’t service, precipitated their demise. Now they’re in the hereafter, with the likes of Woolworths, HMV and BHS, having suffered the same fate.

[erolz66]

Brexit was not the sole cause for TC collapse but nor did it play no part at all in it happening when it did. The only useful information is to what degree did Brexit contribute to the collapse of TC happening when it did and this is something that none of us can possibly know and quite possibly something that no one can know. That does not mean the 'optics' of the situation may not lead to some people believing that Brexit played a part or a bigger part in the collapse regardless.

[Lordo]

anyway so has this brexshit lark affected thomas cook travel company.
has the drop in the sterling had any bearing on its collapse?

I’m beginning to wonder if Milti’s taken over writing your posts. No, that can’t be, he can do English.

How do you arrange your holidays these days? Go to a travel agent? More likely the same way as me I suspect. Tap, tap, tap. Get it?

That technological change, coupled to the fact they undertook what turned out to be a disastrous merger with MyTravel, saddling them with a huge debt that ultimately they couldn’t service, precipitated their demise. Now they’re in the hereafter, with the likes of Woolworths, HMV and BHS, having suffered the same fate.

what was your school reports like? I bet it said must do some work and could do better if he paid any attention in sterling.

did i ask what caused it? i simple the asked has it had any bearing on it?you can't even answer a simple question like that without going to some verbal diarrhea ffs boy. pay attention boy

[Pyrpolizer]

Are you claiming the Central Bank dictates the private Banks the exact figure of what their own interest rates should be?

The Central Bank dictates the interest level or cost of money.

From there, the Banks only add between 1 to 1.5% margin on forward lending to the consumer (that's the home loan rate). Business Loans are slightly more dearer.

That's what I said on the first place.
Therefore the ones who eventually let the money out to the economy are the Banks depending on the base rate they get from the Central Bank.
So if the base rate of the ECB is actually 0,00% how come that isn't enough to boost the economy of any Eurozone country, and yours down there is Australia which is 1% , is enough??
https://bankofcyprus.com.cy/en-gb/retai ... bit_rates/

Concerning the link you provided about Italy's situation did you actually read it?
This is what is says verbatim:
There are, of course, many other reasons for Italy’s malaise, and these will be at most only partially addressed by leaving the euro.

[Paphitis]

Are you claiming the Central Bank dictates the private Banks the exact figure of what their own interest rates should be?

The Central Bank dictates the interest level or cost of money.

From there, the Banks only add between 1 to 1.5% margin on forward lending to the consumer (that's the home loan rate). Business Loans are slightly more dearer.

That's what I said on the first place.
Therefore the ones who eventually let the money out to the economy are the Banks depending on the base rate they get from the Central Bank.
So if the base rate of the ECB is actually 0,00% how come that isn't enough to boost the economy of any Eurozone country, and yours down there is Australia which is 1% , is enough??
https://bankofcyprus.com.cy/en-gb/retai ... bit_rates/

Concerning the link you provided about Italy's situation did you actually read it?
This is what is says verbatim:
There are, of course, many other reasons for Italy’s malaise, and these will be at most only partially addressed by leaving the euro.

The Australian Economy has always traditionally been extremely strong.

Australia is a resource rich country. When commodity prices go down like they have right now, our economy suffers but we still sell resources and make a lot of money from resources so we are able to weather it better.

The Australian economy has literally been the pick of the OECD. Australia has been growing for 36 years now. We have never recessed in 36 years although it is getting precariously close now.

Our Central Bank has interest rates at 1.25% currently whilst the ECB has set them at 0% and Germany has still slipped into recession. Australia has not slipped into recession and is actually performing quite well. It's slowing down according to the Central Bank and our Central Bank has hinted that there will be at least another rate cut and maybe more. So in the next month or 2, it is likely our base rate will go down to 1%.

Obviously, this places the Australian economy in a very strong position. Our Central Bank still has room to move whereas the ECB do not.

Yes our commercial Banks are the outlets where money is given out. They follow the base rate set by our Reserve Bank. Our Reserve Bank isn't a commercial outlet. It's a Government Owned outlet that sets fiscal and financial policy, prints, and issues bonds to meet the needs of the Australian Economy and Australian Government. It controls growth and inflation as well.

Also, the Australian Current Accounts are in Surplus now. This means that the Australian Government earns more than its spending and that places the Australian economy in a very powerful position.

The EU has never had as strong an economy as Australia. In fact, I do not believe any country has been as fortunate as Australia has been. When the GFC hit, Australia was still growing at 2%. It was growing at a faster rate than any EU State, including Germany.

As for Italy, getting out of the EU does not solve the internal corruption or mismanagement of Italy. It does however provide them with a Central Bank of their own, allowing them great flexibility to set their own parameters to suit their own economy. Having your own Central bank doesn't mean you can't slip into recession or that all your problems are solved. Italy has never really had problems till it joined the Eurozone, same as Spain, Portugal, Greece, and Cyprus.

But let's look at Greece and Cyprus. They were not allowed to QE when they had a meltdown. They were handed over to the IMF and strict austerity was introduced.

But now that Germany has gone into recession, the ECB has implemented a process of Qualitative Easing. Do you see the hypocrisy here?

In other words, Greece and Cyprus are just vassal States and dependencies.