Spend it now... because in 3 years it's value will halve

sabretoothtigger

In May 2011 I think 10% is possible yea and 5% also might happen, I dont see it as massively unlikely.
Everyones personal measure of inflation will vary so its bound to be controversial









I dont know what will happen but the probability of it being higher then expected seems very good. I take the opinion that the government did nothing to reverse previous bad decisions shown in rising inflation over the decade.
Theres good odds of it continuing history to higher rates or even being much worse I think. Most people thinking the opposite would confirm that for me and increase the scenario occuring, obviously people dont delibrately take actions that make them poorer it just happens before they can prevent it.

Anything too anticipated (by mainstream and power figures) is less likely is how these things work from what Ive seen over the last few years.

How does this government rank for anticipation accuracy or have they just reacted, regardless of judging actions as good or bad


http://news.bbc.co.uk/1/hi/business/10090047.stm

mbga9pgf

You are forgetting CPI/RPI is the result of massive government stimulus and cuts in exchange rate. Have a look at what happens to inflation in countries like greece over the next 2-3 months if you want a hint of what will happen here.

There is too much slack in the economy for wage rises, any rise in income tax, VAT and NI will put pay to any pay rises and thus longer term inflation outsideof increased import costs.

Its Deflation.

PhylPho

TRUSt_NO_1 wrote: »

work it out

So does this mean the Members of Parliament I buy are going to be cheaper? Or more expensive?

I think we need to be told.

sabretoothtigger

inflation in countries like greece

They dont control their own currency so it'll be different. My main theory is that the politics and government of this country are a minor influence compared to our place in world trade and that affect is increased by our need to import rather then being a self adjusted country like Japan is a self funded exporter and apparently Italy has a high savings rate.

We are a customer in a crowded busy world
If the UK can serve itself and develop internally then prospects get much different

The way people are acting I think we will need the high prices to create the internal demand

will put pay to any pay rises

bad pay rises just means we get poorer, it doesnt have to mean prices go down. I do not believe the majority of prices in this country are based on how rich people are.
Some of it is that but demand for food is same however poor people are pretty much, the luxury goods will suffer deflation


India has a stronger currency then Britain and they have a bad inflation problem but we do not. That doesnt add up really



http://blogs.ft.com/beyond-brics/2010/04/29/indias-soaring-inflation-sore/

PhylPho wrote: »

So does this mean the Members of Parliament I buy are going to be cheaper? Or more expensive?

I think we need to be told.

My own MP is quiting presumably because he effectively got a pay cut having previously claimed the absolute maximum expenses

mbga9pgf

sabretoothtigger wrote: »

They dont control their own currency so it'll be different. My main theory is that the politics and government of this country are a minor influence compared to our place in world trade and that affect is increased by our need to import rather then being a self adjusted country like Japan is a self funded exporter and apparently Italy has a high savings rate.

We are a customer in a crowded busy world
If the UK can serve itself and develop internally then prospects get much different

The way people are acting I think we will need the high prices to create the internal demand




bad pay rises just means we get poorer, it doesnt have to mean prices go down. I do not believe the majority of prices in this country are based on how rich people are.
Some of it is that but demand for food is same however poor people are pretty much, the luxury goods will suffer deflation


India has a stronger currency then Britain and they have a bad inflation problem but we do not. That doesnt add up really



http://blogs.ft.com/beyond-brics/2010/04/29/indias-soaring-inflation-sore/






My own MP is quiting presumably because he effectively got a pay cut having previously claimed the absolute maximum expenses

Weare the 4th largest export market in the world. Unfortunately, wayne and waynetta have managed to outspend our exports by buying cheap chinese tat. Once demand is destroyed for these items due to disposable income going to the government, what happens next?

If you were the central bank, would you

1) reverse QE and sell bonds you bought to banks to reduce liquidity, to increase bank liquidity aspart of Basel II

or

2) increase IRs whilst we have a 1.4 trillion personal debt overhang?

India has 10%+ GDP growth. want to hint at where that is coming in the UK anytime soon?

Did printing 200% gdp public sector debt generate inflation in Japan?

PhylPho

sabretoothtigger wrote: »

My own MP is quiting presumably because he effectively got a pay cut having previously claimed the absolute maximum expenses

So what with him and all the Honourable Friends standing down, looks like there's going to be such a marketplace glut that even lobbying work will halve in price.

I might just buy that nice Mr Hoon for a fiver then.

vaporate

I have an idea. All the 'nay sayers' can give me all their wealth if they believe the world is coming to an end lol.

'Gloom and doom'.

PhylPho

vaporate wrote: »

I have an idea. All the 'nay sayers' can give me all their wealth if they believe the world is coming to an end lol.

'Gloom and doom'.

Just as an aside, vaporate, your sig is really intriguing. If you're currently awaiting to graduate, would the subject be, er, Politics?

sheslookinhot

TRUSt_NO_1 wrote: »

work it out

Certainly true if you buy a new car