Winners / Losers / Future

amcluesent

>can you explain how you came to this deep economic theory<

Clowns' lost control of the money supply, part of his scorched earth policy to leave the economy wrecked for the next administration. Actually QE is core to NuLabour policy to use inflation to erode the real value of the govt. debt, devalue the £ and, helpfully, inflation is another tax by stealth.

Tories coming in will, again, have to get inflation out of the system and despite the recession will raise interest rates as they did in 1979. Clown's bloated public sector needs to be controlled, so a pay freeze helps to reduce the salary costs in conjunction with natural wastage and layoffs.

For any adminsitraion the unfunded public sector pension is unsustainable, so the 'glory days' of index-linked final salary schemes will be over.

kriss_boy

How quickly will interest rates rise?

Will people have time to consider their options insofar as fixing their mortgage rates or are you suggesting some will be sucked in and locked into higher rates than they had before they dropped!

chucky

amcluesent wrote: »

>can you explain how you came to this deep economic theory<

Clowns' lost control of the money supply, part of his scorched earth policy to leave the economy wrecked for the next administration. Actually QE is core to NuLabour policy to use inflation to erode the real value of the govt. debt, devalue the £ and, helpfully, inflation is another tax by stealth.

Tories coming in will, again, have to get inflation out of the system and despite the recession will raise interest rates as they did in 1979. Clown's bloated public sector needs to be controlled, so a pay freeze helps to reduce the salary costs in conjunction with natural wastage and layoffs.

For any adminsitraion the unfunded public sector pension is unsustainable, so the 'glory days' of index-linked final salary schemes will be over.

i don't disagree with your political comments

as for your economic comments all they have done is swap Gilts for QE Money - that doesn't create inflation. they've changed what the debt is made up of.
inflation is only created if the money get's into the economy which it looks like it won't. so no inflation.

interest rates is the biggest unknown because it depends on what happens wit tthe inflation. would you agree?

bo_drinker

A woman on the radio today was saying, staying in is the new going out and frugal is the new bling. You need to get that fish pie down though, 2.50 a head :eek: Lavish.

hearts

kriss_boy wrote: »

Doesnt that depend on the lifestyle you lead in the first place though?

My girlfriend and I are pretty frugal. I haggler every bill/contract we arrange when it comes to insurance, phone/broadband etc. We arent fussy what we eat either which is perfect as I nip into Sainsburys everday at the back of 5 for some cheap out of date stuff hah! My speciality is fish pie which comes all in at under £2.50 per head!

Live like a pauper, die like a lord......I suppose it's the choice you've made . Good luck to you ;-)

........but remember this life isn't a practice for another to come ;-)

Cannon_Fodder

For NHS staff tied on a 3 year deal, there doesn't need to be much inflation, to be falling behind;

http://news.bbc.co.uk/1/hi/health/7438425.stm
"The offer would give more than one million staff a pay increase of 2.75% from April, followed by further increases of 2.4% in 2009/10 and 2.25% in 2010/11."

Local Government may vary by location/union/department etc, but according to some sources;

"Local government has another two years to run of its three year funding settlement period. This means that the amount available for pay rises has already been set at 2-2.5% for 2009/10 and 2010/11."


So, current CPI is already eating into all those NHS and Local Government employee's incomes who don't own a home.

And as some have pointed out in other threads, as it is those with above average incomes who tend to own, then its pretty likely the preponderence of ownership amongst those groups, being generally low paid, is statistically low.


If GB is very lucky, he'll get to negotiate the renewal of these deals before inflation has kicked in, and he can fix them around the same figures, knowing full well long-term inflation will be higher.


Obviously everyone has their own inflation rate, and the OP appears switched on. But his colleagues may not be so lucky, or home-owners...


Future inflation - oil is likely to go up once demand recovers, which will knock-on to petrol of course. And may impact engergy prices, too. And petrol hits delivery on all types of goods.

While some wage deflation will delay that impact for a while, and there are plenty of "deals" in supermarkets etc, when it is decided QE has been done enough, IRs will return to "normal", at least, and inflation will follow it.

Depending on the effectiveness of QE, there may be additional "manufactured" inflation.

(If there isn't going to be, why on earth are they doing it - its supposed to be a stimulus to generate growth...??)

As for job security, the OP may be right, as even a pessimistic report out of the Times says 40,000, which out of half a million, or whatever LocGov currently employs, isn't much, is it?
http://www.timesonline.co.uk/tol/news/politics/article5804748.ece

kriss_boy

hearts wrote: »

Live like a pauper, die like a lord......I suppose it's the choice you've made . Good luck to you ;-)

........but remember this life isn't a practice for another to come ;-)

Its a common misconception that people who are frugal dont spend as much money... the net result of haggling those bills, buying cheap out of date food for tea etc is I can afford to spend the money else where.

Be it on overpayments to the TSB or the car in my drive that I paid mainly with cash.

It never ceases to amaze me how much money people waste on mundane things like heating, internet, mobile phone bills and insurance whilst complaining they cant afford to go out at the weekend :P

lostinrates

kriss_boy wrote: »

Its a common misconception that people who are frugal dont spend as much money... the net result of haggling those bills, buying cheap out of date food for tea etc is I can afford to spend the money else where.

Be it on overpayments to the TSB or the car in my drive that I paid mainly with cash.

It never ceases to amaze me how much money people waste on mundane things like heating, internet, mobile phone bills and insurance whilst complaining they cant afford to go out at the weekend :P

We make choices like that too. We've realaxed a lot, LOT in the last year or so. To some its going without, because they have different goals and dreams, but for us the things we want are different, and we see the lack of them rather than the lack of things some other people see as necessities.

mewbie_2

Shouldn't that be krill_boy?

dumby1

Interesting.