Once inflation rises interest rates will rise rapidly as well

Graham_Devon

Really2 wrote: »

By your same argument saving is not an investment so why do you think saving rates should be inflation busting?

So if I say "can't get a savings product to keep up with inflation", you interpret that a me saying "I think they should be inflation BUSTING"?

Ever wondered why we find it impossible to discuss?

Keep up....rate busting.

Slight difference there....don't ya think?

And here I am, having to correct everything you tell me I have said, yet again, julie going on about meat in relation to savings products trying desperately to convince me of something.

Therefore, I'm out. Have fun

Malcolm.

Graham_Devon wrote: »

Whats up malcolm dear boy? Actually discussing something too much for you? Feel better with flippant lines and clappy hands?

If your happy with that level, you just carry on lad

Flippant lies Brilliant! :T

julieq

OK Graham, where do you think the money to pay savings returns that keep up with inflation come from?

chucky

julieq wrote: »

but I'm guessing what we'll get is deflection and an masterful application of the Chewbacca defence.

i think you're probably right Julie

but please don't be beastly to Devon - he's feeling delicate at the moment after his breakdown yesterday

Really2

Graham_Devon wrote: »

So if I say "can't get a savings product to keep up with inflation", you interpret that a me saying "I think they should be inflation BUSTING"?

Are there not ISA's at 3% over 4% for fixed rates.

julieq

Hang on, I thought we needed above inflation rates so that the value of the poor pensioners' capital (the nice old people that smell of lavender, not the NASTY baby boomers of course) wasn't eroded as they used the interest to generate income. So obviously if a savings product just kept pace with inflation in terms of returns, they'd be drawing down on capital as they took the interest.

Let's all have savings accounts and do nothing else. Then we can all be rich without having to do anything at all. Just like, err, homeowners.

The real problem with this country is shrink wrapped everything, everything is packaged into nice discrete little packages with all the nastiness removed. We've become so averse to understanding where things come from, we can't connect things up any more. Graham is a prime example: he focuses on one particular idea - savings being virtuous - without being able to figure out why people are prepared to give him money for putting his money onto their books. At the limit, savers are useless parasites, and the truly virtuous people are those prepared to take a few risks to generate wealth for everyone else.

StevieJ

Graham_Devon wrote: »

I've highlighted your problem

Problem being, I said saving product which kept up with inflation.

You could put 5k into an ISA, and find you have got 3k a year later.

You'll get there, I'm sure

Or 20k

Element47

RDB wrote: »

If you are right then how can anyone who bought a house last few years keep up with mortgage payments?

What happened last time this cycle happened?

They wont be able to pay there mortgages.

We will see foreclosures here in the UK as widespread as in the USA.

Gorgeous_George

Inflation is the least of our worries.

However, when inflation starts to rise, a period of reverse Quantitative Easing will ease the pressure for interest rate rises. Personally, I'd love to see interest rates of 12% - but it ain't gonna happen in my lifetime (is my guess).

GG