Britain faces deflation !!!

baby_boomer

Yes, inflation won't be easy if combined with wage rates and savings rates that can't keep up.

When interest rates rise to try to contain it, any hint of economic recovery will be snuffed out.

worldwheeler

ad9898 wrote: »

I believe deflation was a manufactured consequence of the government policy to reduce IR's to close to zero, to stop a repo catastrophe, and in turn has allowed them to sart QE, all this is just kicking the problem further down the road, and making the situation much, much worse.

When inflation does start to kick in, people think it will reduce their debts, it won't, it will make them worse, as unlike the 70's, wage inflation will not follow, causing everyone to get poorer.

Then we have the 'small' problem of the tax tsunami, to add to higher interest rates when inflation starts to rise............ and some people think the property market is going to stablise this year, I suggest that will only happen in their dreams.

Never mind. Everybody (that's all but the top 1%, maybe 0.5% of the wealthy) will have to work harder and give over a higher percentage of their labour to pay back the "money" that the bankers print on pieces of paper, oh, plus the interest on these paper notes.
Who said slavery has been abolished?

"Give me control a nations money , and I care not who makes it's laws" - Mayer Amschel Rothschild.