Moneyweek: 0% interest rates are dangerous...

purch

What does averyone else think?

Hyperinflation is word that's easy to type, easier to talk about, but much harder to understand, and won't occur in any of our lifetimes.

WTF?_2

purch wrote: »

Hyperinflation is word that's easy to type, easier to talk about, but much harder to understand, and won't occur in any of our lifetimes.

... as Robert Mugabe said in 1999 when he started printing money to reward his 'War Veterans'.

purch

.......in identical circumstances to those faced by the U.K. right now :rolleyes:

Dithering_Dad

!!!!!!? wrote: »

... as Robert Mugabe said in 1999 when he started printing money to reward his 'War Veterans'.

lol, if you really believed that Brown is as bad as Mugabe, you'd be looking to leave the UK and take your wealth with you. An even better way to escape the hyper inflation that you believe is coming.

Why are you not doing this?

greenwheels007

Hang on a sec, lets not say anything we haven't thought about.
The terrible regime suffered by the people of Zimbabwe is nothing in comparison to the luxury in which we live and will continue to live.
The circumstances in Zimbabwe are horrific and tragic.
Perhaps we need to take stock and keep it real folks!

It is a good point that hyper inflation has occurred in Zimbabwe but to say that the circumstances there are 'identical' to here is crass and poorly judged.

the_ash_and_the_oak

I agree the word hyperinflation is used to mean a myriad of different things and perhaps we should agree or at least clarify what we mean by it.....

I don't believe hyperinflation is coming to the UK. But double digit inflation is much more of a possibility (as in the 1970s). But that isn't hyperinflation by any stretch of the imagination.....

If any of you are worried about the worth of a particular currency there is nothing stopping you having savings in a different currency (or any number of currencies). We have seen what *can* happen (Argentina, Iceland). It doens't hurt to keep a portion of your money out of sterling (DYOR as to which you prefer)....This has obviously been a good thing to do over the last year or so....will it continue to be is the question

Cannon_Fodder

Think I saw a technical definition of "hyperinflation" as 50% per month. Sounds unlikely, hope we've got better finance experts to guide the Govt than Mugabe has got :- "agree with me or be burnt alive, doesn't create a dissenting environment".

"Hyper" in the tabloid sense? - very high compared to what we have been used to, very high compared to even the seventies...?

good chart at http://www.bankofengland.co.uk/education/inflation/timeline/chart.htm shows the recent peak of 25% in 1975...and 36% in 1800...

If Brown digs himself a hole by bailing out more and varied organisations then he could create a scenario whereby the unions demand that it is their "turn" to be bailed-out...workers get a big % to keep up with moderate inflation, go out and spend it like the good economy-helpers they are = high inflation.

Feasible. Hope the election beats him to it.


Another interesting chart - if the US have spent as per the below, then that money sloshing around is going to have what effect?



http://www.marketoracle.co.uk/Article7787.html

the_ash_and_the_oak

There still seems to be a good long way for the debt deflation to go before increased money supply starts getting mulitplied though?...

And correct me if I'm wrong but I get the feeling we are some way from any of this 'cheap money' actually getting to the public (With a £40k salary and £30k/15% deposit the best HSBC can offer me - going via their mortgage calculator - is 6.99%)

WTF?_2

Dithering_Dad wrote: »

lol, if you really believed that Brown is as bad as Mugabe, you'd be looking to leave the UK and take your wealth with you. An even better way to escape the hyper inflation that you believe is coming.

Why are you not doing this?

Possibly because I didn't say that Brown is just as bad as Mugabe and I didn't say that we are in exactly the same situation as Zimbabwe?

I also didn't say that hyper inflation is certainly coming. I do believe strong inflation is almost a given and that hyperinflation is a real possibility in that environment.

Of course you'd know this if you ever bothered to actually read and comprehend what I was saying instead of interpreting it in the way most beneficial to making a personal jibe.

Dithering_Dad

!!!!!!? wrote: »

Possibly because I didn't say that Brown is just as bad as Mugabe and I didn't say that we are in exactly the same situation as Zimbabwe?

I also didn't say that hyper inflation is certainly coming. I do believe strong inflation is almost a given and that hyperinflation is a real possibility in that environment.

Of course you'd know this if you ever bothered to actually read and comprehend what I was saying instead of interpreting it in the way most beneficial to making a personal jibe.

Then why did you mention him at all in a discussion that had nothing to do with the sad situation in Zimbabwe?

Plus I didn't have a personal jibe at you. I merely asked that if you really felt so strongly about hyper inflation then why are you not making preparations to secure your wealth against it. Hardly personal - or are we not allowed to even question your financial statements anymore without being accused of trolling?