Telegraph warns of "Period of Austerity"

Thrugelmir

Bootski wrote: »

The Treasury tried to get money out of my late Mum when she died so they'll try anything.#

I'd have given them what then where due but they left it up to me to prove I didn't owe a penny - good luck to them though! Nearly got it, had I been a little more stupid, they'd have taken it from me hook, line and sinker.

Are you confusing different Government departments?

Mr Brown however is renowned for pick pocketing people by putting the nasty surprises in the small print.

Bootski

Thrugelmir wrote: »

Are you confusing different Government departments?

Mr Brown however is renowned for pick pocketing people by putting the nasty surprises in the small print.

No, - Caroline Chambers from the Treasury solicitors office - we had a 5 month relationship - I'd not even buried my motherl I couldn't even understand what she / they wanted from me.

Radiantsoul

amcluesent wrote: »

Of course, England is teetering on the abyss of political, economic and social turmoil.

We are in a perfect storm of a faltering economy, various asset bubbles, unsustainable sovereign debt, rising unemployment, an ageing population, a divided society, a repressive and bullying administration, worn-out infrastructure, corrupt/jobsworth public sector, minimal food and energy security, foreign adventurism and the 'prospect' of two generation of half-wits coming from the schools/'universities'.

Sadly, we'll be lucky to manage an orderly decline to join tinpot countries, but as the money runs out it's more likely we'll lurch into civil strife and default.

And on the positive side?

Radiantsoul

I think that some inflation might be good as their still seems like a strong risk of deflation in the medium term. I certainly can't see how their could be run away inflation, demand for commodities, property and labour remains weak.

The fact that people can no longer use equity release to fund spending, that incomes have stagnated for two years now and are unlikely to rise again and taxes will need to rise are bound to reduce private consumption. It is going to be quite a while before individuals are able to spend enough to set inflation racing. Economic growth will probably need to fund government spending and deficits and not consumption. Plus the gap between actual and potential output might be ten percent.

So my guess is inflation will be low, baring the occasional commodity or tax rate increase shock for the next two or three years.