Chancellor set to print more cash

tradetime

Caligirl wrote: »

First time poster here! I am seriously worried about this crazy plan by this loopy government to print more money.

I have substantial savings - some in ISAs, some in the Index-Linked Savings Certificates, some in savings accounts.

What should I do? I don't want my money to become worthless.

I am hoping to move to America by the end of the year (I work over there quite a lot) - should I get all my money out now and over there?

I know a lot of people will say the US is in a worse state than the UK but having been over there recently, there is nothing like the chaos going on here with shops closing down. It seems to be way worse and more accelerated here in the UK.

Help - I don't have a mortgage, pay off my credit cards each month and have saved for the past several years. I am gutted that it seems those of us who have been prudent are now being penalised.

What should I do to make sure my savings don't become worthless if this ridiculous excuse for a government does decide to print more money (euphemism = quantative easing)? Is taking my money abroad the best option??

Help!

Yeah ok, state of US retail?
I suspect you're in for a nasty surprise then. As for moving your money to US at the moment, I believe the USD is at an artificially high level and is likely to drop, as to the money printing, I think perhaps you forget the US are likely to lead this.
If you are worried about the value of your money falling then it is inflation you are afraid of so put your money into inflation protected assets, but make sure you keep enough out to live on for the next couple of years, as it will take a while for inflation to kick in.

Caligirl_3

Thanks Nobby24 and Wombat42! I did own a flat here in the UK until two years ago. I can see the thought behind buying property but the issues I have with that is that the state of the housing market seems quite a gamble at the moment. My fella says the best thing to do is invest in property too but I'm not sure whether I would get a good mortgage at the mo or any at all (am self-employed) and whether I would be able to get a decent rental income. Don't you also have to pay tax on rental earnings even if it is paying off the mortgage on the property? I also wonder whether the rental market isn't flooded at the moment too?

The thing I am worried about is my savings losing their value if Labour do decided to print money. If they do take this unprecedented and - as far as I can see from other countries who have done it - disastrous step, surely pounds won't be worth anywhere near as much as they have been worth?

Sorry for my panic, and sorry if my questions sound silly, as I am new to this forum

tradetime

Caligirl wrote: »

Sorry for my panic, and sorry if my questions sound silly, as I am new to this forum

Welcome to the forum Caligirl :beer:
You need to calm down a bit, and take a logical overview. Yes it's pretty dire here in UK Plc, but so is everywhere else, this is a global phenomenon, will the UK come out of it better or worse then anyone else? Who knows, but if you are moving to the US by year end, that's likely not a question you need concern yourself with, you'll be more interested in how the US comes out of it, I don't know btw.
As for money printing (Quantitative easing) everybody will be at it in the west so It's sort of a non issue to some extent, other than the longer term inflationary implications. Note "longer term" in that comment.
As for UK property, my advice would be steer clear, you'll likely have to put at least 20% down, and the way I see it there are at least 20% more downside, so that would just be throwing your money away, secondly if you are moving to US by year end, do you really want to saddle yourself with a UK property to administer? If you really want to look at property, the US market might be worth a look since you are moving there, they went into this before us so should be further along.
Otherwise, if you are sure of your US move, I might look at US inflation protected bonds for some of my money, and leave your UK index linked savings as is.

dazzaofdagenham

buy a STEAK BAKE from greggs

Caligirl_3

Thank you for your sensible and logical reply tradetime. What you say really makes sense and has eased my panic somewhat!! I agree with you on the property front - am not too enamoured with buying property here at the moment! Thanks your advice and patience with a newbie! :T

silentfox

MrSinister wrote: »

Just what would happen to people with savings then... would they all become worthless?

Yes BOE is a joke, the government BOE are doing the wrong thing by encouraging more spending, they really think the people of this country are stupid...maybe they are right as there are no riots just quiet acceptance!

wombat42_2

McSaver wrote: »

Deflation??? I thought that only happens with balloons.

If deflation occurs in the UK then it would only mean that value of my savings would actually increase invalue of terms of buying power.

Er deflation is the opposite if inflation. Ballons get inflated as well as deflated

juicyjude

How can we spend more?? Or am I totally missing something here. Our interest on our savings now is so poor that we cant afford to spend any more. Yes if you are prudent and save for your future, forget any reward now get into debt thats a different matter. So angry about a further cut today,I know it will happend at noon. Just waiting for the announcement!My interest on one account has gone from £207 per month to now probably £60.

juicyjude

And whilst I am having a rant (sorry) people wont be spending anyway as they are all worried about job security if they still have one

cookie_monster

why doesn't the chancellor just sort out his eye-brows?