The Election Is Over - Tough Times Ahead. Time To Plan!

welshmoneylover

I started saving when Labour got into power 13 years ago, I predicted they would bankrupt the country *which they did* and open the floodgates to immigrants *which they did*.

I got enough to see me through

Mark_In_Hampshire

Bloomberg wrote: »

I agree with you. My prediction is that by this time next year petrol will be £1.40 per litre. Just out of interest what do you think?

As the pound collapses against the dollar, anything is possible; add an "event" in the middle east - like, for instance, war against Iran, and we could see £2 per litre.

This is timely:
http://www.telegraph.co.uk/finance/economics/7731212/Petrol-expected-to-fuel-inflation.html

Bloomberg

Mark_In_Hampshire wrote: »

As the pound collapses against the dollar, anything is possible; add an "event" in the middle east - like, for instance, war against Iran, and we could see £2 per litre.

This is timely:
http://www.telegraph.co.uk/finance/economics/7731212/Petrol-expected-to-fuel-inflation.html

I totally agree that £2 a litre cannot be ruled out. In a previous post I mentioned that interest rates could be at 5% this time next year. A confrontation with Iran or losing our triple A credit rating could well send our interest rates double digit. Thanks for you interesting post.

Mark_In_Hampshire

Bloomberg wrote: »

I totally agree that £2 a litre cannot be ruled out. In a previous post I mentioned that interest rates could be at 5% this time next year. A confrontation with Iran or losing our triple A credit rating could well send our interest rates double digit. Thanks for you interesting post.

http://business.timesonline.co.uk/tol/business/economics/article7129544.ece

Why this is a surprise to anyone is a mystery

Bloomberg

Mark_In_Hampshire wrote: »

http://business.timesonline.co.uk/tol/business/economics/article7129544.ece

Why this is a surprise to anyone is a mystery

I speak to many people from all walks of life. It is really shocking how few people are making any sort of provision for the really bad times which lie ahead. We are not living in the real world yet. A £200bn quantitative easing program in conjunction with artificially low interest rates have temporarily shielded most people from reality.

My relationship manager at the bank said that many people who are now paying cheap mortgages are not saving the extra money, it is being spent as if the low interest rate is here for good and for all. In another post I said that interest rates could easily be at 5% next year, the general consensus was that it will not happen. I would go as far as to say that within three years we could easily see double digit interest rates.

I am not an optimist, nor a pessimist but a realist. anyone who thinks that we are over the worst is being seriously naive. Today's inflation figure is hardly encouraging.

Mark_In_Hampshire

... and, perfectly timed, this article:

http://blogs.telegraph.co.uk/news/neilobrien1/100040077/the-next-big-political-battle-will-be-about-the-cost-of-living/

Bloomberg

Mark_In_Hampshire wrote: »

... and, perfectly timed, this article:

http://blogs.telegraph.co.uk/news/neilobrien1/100040077/the-next-big-political-battle-will-be-about-the-cost-of-living/

Prior to the election we had a pretend budget, Darling had two agendas at the time - making small in roads into the budget deficit and not alienating the electorate. It was essentially a pretend budget because Darling refrained from the much needed drastic measures to sort out the national debt.

It is my strong belief that when George Osborne delivers his budget we are in for some harsh measures. Drinkers, smokers and motorists should be bracing themselves for some bad news. People on benefits will also be hit, the possibility of gradually phasing out or savagely cutting tax credits and the like can by no means be discounted. It should also be noted that the aforementioned list is only the start of what is to come as we edge ever closer to austerity.

The S&P clearly stated that if after the election there is no structured and decisive plan to start clearing the deficit then our AAA credit rating could be revoked. This would mean interest rates rocketing, they will rise anyway but losing our AAA rating would make a bad situation worse. We should be hoping for the best but preparing for the worst.

Mark_In_Hampshire

Related (even if it is the Daily Wail):

http://www.dailymail.co.uk/news/article-1283141/Britain-highest-inflation-Western-World-families-face-sprialling-food-prices-pound-plunges.html