CPI hits 4.4pct

ILW

blueboy43 wrote: »

Smaller pay packet, while your debt burden stays the same.

You just don't get it do you ?

Do a forum search on user Dopester who posts some interesting stuff on the destructive power of deflation

I am self employed and have no debt. Would suit me fine.

Contrary to popular belief, not everybody is hocked up to the eyeballs.

Degenerate

ILW wrote: »

I am self employed and have no debt. Would suit me fine.

Might not suit you so well when the work stops coming in and you have to drop your rates, because people are hoarding their money rather than hiring people like you to do stuff.

hallmark

Cleaver wrote: »

There is a worrying amount of people on this forum who seem to think that the base rate exists to shape the housing market. You do concede that there were possibly some other rather more important reasons for lowering the base rate than just trying to meddle with house prices?

No, I don't.

ILW

Degenerate wrote: »

Might not suit you so well when the work stops coming in and you have to drop your rates, because people are hoarding their money rather than hiring people like you to do stuff.

In times of deflation, what would people stop spending their money on in the hope of it being cheaper next year?

Mainly imported gadgets I would suspect and these tend to get cheaper year by year anyway but most still buy them.

blueboy43

ILW wrote: »

In times of deflation, what would people stop spending their money on in the hope of it being cheaper next year?

Because that is exactly one of the effects of deflation - people hoard cash.

It is impossible to have general deflation without either falling incomes or vast increases in unemployment.

There are winners and losers with both inflation and deflation, the problem is - how exactly do you solve deflation ? - the Japanese have been trying for 15 years without success.

The solutions for high inflation are tried and tested, but painful.

ILW

blueboy43 wrote: »

Because that is exactly one of the effects of deflation - people hoard cash.

It is impossible to have general deflation without either falling incomes or vast increases in unemployment.

There are winners and losers with both inflation and deflation, the problem is - how exactly do you solve deflation ? - the Japanese have been trying for 15 years without success.

The solutions for high inflation are tried and tested, but painful.

Agreed, but if that hoarded cash was spent mainly on imports (which does appear to be the case with much disretionary spending) would it badly affect the UK economy?
Also the hoarding of cash would have a positive effect on public spending on benefits etc.

StevieJ

blueboy43 wrote: »

Smaller pay packet, while your debt burden stays the same.

You just don't get it do you ?

Do a forum search on user Dopester who posts some interesting stuff on the destructive power of deflation

Better still, come out of hiding Dopester, we miss your posts, I wonder if he has bought a house yet?

Cleaver

Cleaver wrote: »

There is a worrying amount of people on this forum who seem to think that the base rate exists to shape the housing market. You do concede that there were possibly some other rather more important reasons for lowering the base rate than just trying to meddle with house prices?

hallmark wrote: »

No, I don't.

Then I have to say that I don't think you're very bright.

Kohoutek

hallmark wrote: »

No, I don't.

Try reading a newspaper now and again.

hallmark

haha, Internet tough guys. Funny how in person ppl like you sh*t their pants & don't say a word.

Happy to say I'm substantially brighter than the ppl who got us into this mess. Who weren't the bankers incidentally, but you're probably too stupid to believe anything nulabour doesn't tell you.