BOE Now Expected To Hike Later Post Poor GDP Data

purch

CPI ex VAT is only 1.9%, inflation isn't high right now

Unfortunately VAT is :eek:

smeagold

Batchy wrote: »

This is all down to the weather...

I know I couldnt spend my money fast enough when i could get to the shops... I know people who had xmas with the family in January... due to travel problems!
Dont be surprises to see a jump up in jan...

Of course it will:

all those people that went into debt to pay for christmas
all those with accumulated debts and loans
and all those being squeezed by inflation.
all those in fear of their jobs because of austerity measures,
all those in fear of housing equity losses with house prices dropping
all those using credit cards to pay the bills just to survive
all those that have lost their jobs recently or on short hours,
all those that have had pay freezes or cuts

and all those suddenly realising that their may never be a recovery at all and that we are going back into recession are going to go out on a glorious spending binge buying all that cheap tat from china nobody really needs

I think it's time to wake up

(which category are you in?)

purch

Simply wrong

That's never stopped him in the past :eek:

StevieJ

Linton wrote: »

Simply wrong. A core and essential part of inflation, and the one targetted by interest rates, is increasing wages. We are not seeing increasing wages. Therefore we do not have internal inflation.

What we are seeing is an increase in commodity prices arising from increases in wealth and demand in parts of the world which were previously poor. Its simply supply and demand. Nothing the BoE does can change it.

Unless we can improve our ability to generate wealth, as large parts of the developing world get richer we will get relatively poorer.

It makes you wonder how people on one tenth of the minimum wage (quote by Mr Mumble, I think) are going to afford these ever increasing prices. I think commodity prices will self regulate and annual inflation will be much lower in 2012, especially when the tax effects have gone.

rich744

The weak growth data is propaganda to ensure rates don't rise......

All the while inflation devalues money........Those with, will have to bail out those without.

smeagold

rich744 wrote: »

The weak growth data is propaganda to ensure rates don't rise......

All the while inflation devalues money........Those with, will have to bail out those without.

you know what, that really wouldn't surpise me in the least.

lvader

purch wrote: »

Unfortunately VAT is :eek:

Thats just a tax change, they could have increased income tax instead and it would have shown a decrease in inflation but most people wouldn't be any better off.

lvader

rich744 wrote: »

The weak growth data is propaganda to ensure rates don't rise......

All the while inflation devalues money........Those with, will have to bail out those without.

Increasing VAT decreases purchasing power but it doesn't devalue government debt. Actually some goverment debt is index linked so VAT increases make the debt more costly to service.

Batchy

smeagold wrote: »

Of course it will:

all those people that went into debt to pay for christmas, (all those people??? didnt you read... GDP is DOWN)
all those with accumulated debts and loans (didnt you read the news, people are PAYING DOWN DEBT!)
and all those being squeezed by inflation (The Squeeze is FUEL, buy a cheaper more economical car, do something rather than nothing)
all those in fear of their jobs because of austerity measures (everyone fears, it doesnt mean you can't still DO SOMETHING)
all those in fear of housing equity losses with house prices dropping (we own two houses now, one is selling, why WORRY, cheaper to buy a bigger pad) the only ones really worrying are BTLers (HAHA) and pensioners who need to sell to pay for care home, before government picks up the bill, gone are the days of inheritances... so who suffers... Government, bigger car bills)
all those using credit cards to pay the bills just to survive
all those that have lost their jobs recently or on short hours, (go and get another job, get two, dont be work shy, anything will do to keep money cash flow alive)
all those that have had pay freezes or cuts (ive had pay freezes, I cut my mobile phone bill down by 75%, cancelled gym membership, and cancelled ridiculous bank fees, and also invested in ISA's instead of instant access) As i said do something rather than NOTHING. My net situation was better, even thou I had no payrise.

and all those suddenly realising that their may never be a recovery at all and that we are going back into recession are going to go out on a glorious spending binge buying all that cheap tat from china nobody really needs

(we are not going out on a glorious round 2 recession, its DUE TO THE SNOW, in case you didnt hear the chancellor.

I think it's time to wake up (no you need to wake up and DO SOMETHING, rather than feeling sorry for yourself)


(which category are you in?)

See my comments in brackets.


Im spending more now than ever, since saving is like taking a pay cut, and if you shop wisely, you can bag numerous ridiculous bargains.

My friends just stand their in Awe at some of my purchases.

Its great fun...

Before, when I never cared, I just brought what I wanted, when I wanted it, with no care about the deal on offer. Its much more fun shopping this way (since 2007).