Savers you've never had it so good?

uih039

Dee_Gee wrote: »

how will we be affected by the government printing millions to put extra money into the economy?

The main impact is likely to be an increase in inflation and interest rates in the medium term, say both around 5% in about 2 years. Also, an increase in taxes and reduction in strength of the £.

am i right to feel nervous?

No, just part of the normal economic cycle. Been there before, will be there again.

Could we end up like Zimbabwe?

Absolutely no chance whatsoever. We are one of the economically and politically strongest nations in the world; Zimbabwe never was and never will be.

IMHO......

Andrew.

Just_landed

gozomark wrote: »

well if all you spend your money on is water and council tax, then you are right, your personal inflation is high. Both are included in RPI, so obviously other things are going down......

I take it your not a pensioner with a basic income ?

gozomark

Just_landed wrote: »

I take it your not a pensioner with a basic income ?

no, I'm not - why ?

harryhound

uih039 wrote: »

Absolutely no chance whatsoever. We are one of the economically and politically strongest nations in the world; Zimbabwe never was and never will be.

IMHO......

Andrew.

Please supply the figures to back up your assertion.

Once upon a time you could probably have said that about Argentina, you could have certainly said it of the Roman Empire.
(mind you there are competing explanations for the fall of the Roman Empire - but I back the explanation that taxes and inflation got to the stage where the bloated government structure fell apart - Oh it reminds me of the collapse of Venice. Perhaps the "malaria" - Rome & "syphilis" - Venice theories were more symptoms than the disease that brought them low. )

Androcles

gozomark wrote: »

no, I'm not - why ?

Hey Just landed -don't waste your irony - look at all the "moneysaving medals" these guys have got from congratulating each other - don't expect to come on this forum and be anything other than patronised.

If you are a basic pensioner or even if you are a pensioner with your assets tied up in ways that see your income dwindling, your capital inaccessible, or at least inaccessible without penalties and your unavoidable costs increasing, don't worry, they will explain to you how your purchasing power is actually increasing, and there is nothing to worry about.:T:T:T

There, you didn't think you could afford to eat, drink and be merry, did you?:beer:
So gozomark, let's hear your suggestions for a sensible strategy for somebody with Just landed's financial situation as a basic pensioner to survive the current recession without worry?

gozomark

how on earth was my question patronising ?

If your point is that a basic pensioner doesn't have much income, fine, I understand, but this thread isnt about absolute levels of income/purchasing power, but about the relationship between nominal interest rates and inflation, and how lower nominal interest rates aren't necessarily a bad thing, and don't necessarily mean a lower standard of living.

I've no idea what just landed's financial situation is, and what they spend their money on, so can't comment whether their personal purchasing power will rise or fall this year. I don't know if he/she faces higher or lower than average inflation - yes some of their unavoidable costs are going up more than inflation - the same is true for everyone - some costs will be going up less or even down.

As for money saving medals - true irony in your comment - I've had one per every three posts, you've averaged one every post - where did yours com from if not other members congratulating you - still I guess it means your comments are three times more useful than mine - congratulations

roddydogs

Is their anyone reading this thread that really believes that inflation at the moment is 0.1% and will eventually be -2.0%.(Deflation)? seriously?

gozomark

yes, I do, as measured by RPI. I also believe its 3% as measured by CPI, and likely to drop to around 0-1%. Whether thats an accurate reflection of your personal inflation rate I don't know. What aspects of the index calculation do you think are incorrect ?

roddydogs

All together, now HO HO HO

gozomark

roddydogs wrote: »

All together, now HO HO HO

how about a proper and useful comment ? what is wrong with the calculation ?