Deflation? For whom?

ad9898_3

silvercar wrote: »

The big gain for some is the fall in the monthly mortgage payment, but to be benefitting from that reduced payment you must be watching your home fall in value.

Swings and roundabouts.

Another great point to put to Brown, the average mortgage payment is £150 per month lower, however the capital loss per month is 20x that. Not that great for home owners then, especially if you bought with a high LTV. Imagine what some of the SVR's are going to be in a couple of years time, with no chance of a remortgage deal for these people, it's going to be horrendous.

treliac

silvercar wrote: »

The big gain for some is the fall in the monthly mortgage payment, but to be benefitting from that reduced payment you must be watching your home fall in value.

Swings and roundabouts.

Likely to be a problem for housebuyers who bought more recently, will go into NE, will want to move, won't be able to service their debt.

For the majority, who bought before the rapid HP rises, it makes little difference, though they may be a bit better off from reduced mortgage payments.

mewbie_2

chucky wrote: »

i can't get my head around people worrying about 20 pence extra on a pint of milk when they are saving hundreds of pounds on something else.

i know this may reflect my personal situation but i'm sure there are many others like me (cue Mewbie).

Not sure why I was cued, but I missed it anyway, some of us have to work at least part of the day to be able to afford the increases in basic foodstuffs, council tax, petrol and to save up for the expected increases in NI and VAT. I've had ten years of being stealth taxed to death by Brown, and spun to by Blair / nuLabour - I wouldn't believe their figures if the Pope had signed them.

MiserlyMartin

I want to know why Martin Lewis is spouting all about deflation, (what it is and how to deal with it advice) all over this site and on GMTV, when it is quite obvious that deflation is not happening for the majority of prudent people!? And most of the people on this site are prudent people or they wouldn't be here!

Thrugelmir

poppy10 wrote: »

Oil price are half what they were this time last year. So why are household fuel prices (gas and 'leccy) up 22.3% year on year?

They were quick to put the prices up when oil was rising, but since the collapse in oil prices we haven't seen the promised fuel price drops.

That's cos GB keeps increasing fuel duty as was the case when the VAT cut was announced ( always tucked away in the small print to avoid news coverage).

dopester

carolt wrote: »

Please explain where you're coming from - would genuinely love to know. I can't get my head round it personally.

Carolt.. there are some deeper aspects to deflation you might want to consider, if you find you have 20 minutes reading time available.

I'm not claiming these projections are a perfect vision of what is heading our way, but they do set out some interesting points about deflation itself. (On a free website so bandwidth might go down after a few page-loads)

< Links removed by dopester >

carolt

Gosh thank you - my own links. Not sure when I'll have time to read them, let alone digest them, which seems v ungrateful after all your hard work. Also, the typeface is v teeny. Any chance of them being on a normal page, rather than photo of a book?

Or even better, an intelligent precis by your good self?

Thanks!

DaveyDave_3

carolt wrote: »

So can someone explain again why we've reduced interest rates to the lowest for hundreds of years, why savers are being shat on, why we're throwing billions of pounds of our (and our children's) taxes at 'fixing' the problem, when it doesn't appear there's much of a problem to fix?

Basically, Labour have an election in the next 18 months. Pure and simple. They can't be seen to do nothing, so have gone mad and given away our inheritance for at least a couple of generations.
I suggest you Google for 'Peter Schiff' and a particularly interesting video on youtube where he explains that all of the measures that are now being put in place will simply prolong the recession. Basically, it's like trying to keep a terminally ill pet alive. A capitialist economy thrives on the principles of 'survival of the fittest', but Brown is determinated not to allow the banks to fail even though they have an unsustainable business model. A more sensible plan would be to take the pain now, clear out the old wood and encourage new sustainable businesses that can run in a low-credit business environment.

Andreg

Thrugelmir wrote: »

That's cos GB keeps increasing fuel duty as was the case when the VAT cut was announced ( always tucked away in the small print to avoid news coverage).

Rubbish. Fuel duty applies to road fuel. There is no duty on household heating fuel, just 5% VAT, and that's why its illegal to put it in your car.

Thrugelmir

Andreg wrote: »

Rubbish. Fuel duty applies to road fuel. There is no duty on household heating fuel, just 5% VAT, and that's why its illegal to put it in your car.

From the Times November 2008.


"Hauliers were outraged today by Alistair Darling’s decision to increase fuel duty to offset a 2.5 percentage-point cut in VAT.
Mr Darling added 2p a litre to fuel duty, which at today’s prices more than offsets the reduction in VAT.
But hauliers complained that, since they can reclaim VAT, the increase in duty will further erode their ability to compete with overseas companies. Motorist bodies also said the move was “giving with one hand and taking away with the other”.


Some of us country yokels spend a fair amount on fuel!