Think inflation worries are over?

Really2

Sir_Humphrey wrote: »

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Your wasting your breath (fingers?) mate. I posted a time series of MoM CPI figures the other day, and he didn't pay any notice.

They contradict his beliefs thats why. If it ain't inflation it does not exist. It does not matter I am around £900 better off in the last 6 months.

It is correction of over blown assets apparently,

But prices going up is inflation.:rolleyes:

dervish

Wookster wrote: »

Don't pay much attention to Dervish - I think he's a member of the BNP judging by some of the crap he sprouts.

what is that supposed to mean?

Wookster

Really2 wrote: »

They contradict his beliefs thats why. If it ain't inflation it does not exist. It does not matter I am around £900 better off in the last 6 months.

It is correction of over blown assets apparently,

But prices going up is inflation.:rolleyes:

Well, then lets talk about the difference between deflation and correction of over egged asset prices: what is the difference?

Really2

Wookster wrote: »

Well, then lets talk about the difference between deflation and correction of over egged asset prices: what is the difference?

To tell you the truth today I think we have I hoped buried the hatchet.

We both have different view probably based on our own circumstances.

Inflation and deflation are double edged swords which depend on your own personal circumstances to how much you feel them.

I am personally seeing deflation, I am not claiming to be right but I think it is the specter we can see in the short term.

To me deflation and inflation are based on disposable income. If my disposable income is growing my chances of wage inflation decrease so i presume I am seeing deflation.

I f the cost of living is increasing and the chances of getting a pay rise to correct that I presume I am seeing inflation.

At the moment I see deflation.

Wookster

Really2 wrote: »

To tell you the truth today I think we have I hoped buried the hatchet.

I hope so, its so much nicer to have a sensible discussion than to wind each other up, especially as we have diametrically opposed views.

Really2 wrote: »

I am personally seeing deflation, I am not claiming to be right but I think it is the specter we can see in the short term.

To me deflation and inflation are based on disposable income. If my disposable income is growing my chances of wage inflation decrease so i presume I am seeing deflation.

I f the cost of living is increasing and the chances of getting a pay rise to correct that I presume I am seeing inflation.

If you see deflation as an increase in your disposable income then why not simply raise interest rates? That will bring you back to inflation pronto

Wikipedia defines deflation as "a persistent decrease in the general price level of goods and services" rather than the cost of servicing the debt associated with the acquisition of those goods and services.

The major problem I have with current policy is that is seems to be designed to reinflate house prices and to make individuals and corporates take on more debt. To my mind this is the worst possible solution, house prices need to reflect people's ability to pay without detroying their ability for other consumption (which they simply do not, currently being ~1.5X more expensive than the long term average) and the UK needs to come to a reasonable savings ratio that is a balance between consumption and saving for the future/ retirement. Taking on more debt is going to work against this.

I do agree that long term deflation is destructive however bubbles need to burst - this is the price of irrrational exhuberance and it is necessary to make property affordable to average earners.

mewbie_2

WFT? wrote: »

Poor impersonation

Doesn't work. A few stupid people might initially fall for it, they are your demographic after all. Bit of a dead loss really, trying to imitate someone and failing so obviously.

Best go back to cutting and pasting stuff, that's more your level.

What I wonder is how pointless your existence is, if this is the best you can find to do on a Saturday night.

tomterm8

Wookster wrote: »

I hope so, its so much nicer to have a sensible discussion than to wind each other up, especially as we have diametrically opposed views.




If you see deflation as an increase in your disposable income then why not simply raise interest rates? That will bring you back to inflation pronto

Wikipedia defines deflation as "a persistent decrease in the general price level of goods and services" rather than the cost of servicing the debt associated with the acquisition of those goods and services.
.

If you define deflation as a persistent decrease in the general price level, then there is no requirement that all asset classes should be falling in price. In the same way that for decades computers have been falling in price for years without any sustained period of deflation, house prices can easily fall without any sustained period of deflation. In fact, during the last house bust there was a period of high sustained inflation.

We need to avoid deflation, but we don't need to avoid house price falls. In fact, house price falls are basically a good thing. What we need to avoid is deflation, particularly decreases in average wages.

MrFonzerelli

WFT? wrote: »

Please stop trolling me. Surely you have much better things to do on a Saturday night, you sad man. Why does it bother you so much what I write, anyone would think you had a vested interest SOCK PUPPET ALERT!!!!

I am a believer in freedom of speech, however i find having to jump your posts a complete waste of time. You are the first person I've put on ignore. I would encourage others to do the same.

mewbie_2

MrFonzerelli wrote: »

I am a believer in freedom of speech...

Well they still have freedom of speech. But you also have the freedom not to listen.

tomterm8

Certainly, people have the freedom not to waist their time on futile arguments with trolls.