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Inflation
Comments
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Although....the coalition will be substantially more incentivised to inflate away debt once benefits are de-linked from inflation. I wonder if this weeks first step towards that may actually turn out to be significant. I think the Govt would be secretly delighted with inflation circa 5% for a few years.
In some ways they would. But there are few greater turn-offs for the electorate than things keep going up in price while their wages are not. Electorally, extended 5% inflation would be a disaster for whoever is in office. That's why the coalition is trying to tread the middle road of having some inflation but not enough to cause great alarm.No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
The world has moved on. Inflation cannot be controlled at National level. Inflation is going to make us poorer.
Unless we work longer hours or increase productivity to fill the gap.0 -
Thrugelmir wrote: »The world has moved on. Inflation cannot be controlled at National level. Inflation is going to make us poorer.
Unless we work longer hours or increase productivity to fill the gap.
Sadly we are poorer already, our banking services are worth relatively less in terms of food and energy. The govt deficit just stops us from realising yet. A nominal adjustment will be less painful than a real terms one if it allows as to deflate some of our debts.I think....0 -
A lot of the WantItAllNowMums!! will be in for a rude awakening if inflation erodes away the value of capital, and that precious inheritance that they hanker after so desperately is worth a lot less than they bargained for by the time they get it.No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
GeorgeHowell wrote: »A lot of the WantItAllNowMums!! will be in for a rude awakening if inflation erodes away the value of capital, and that precious inheritance that they hanker after so desperately is worth a lot less than they bargained for by the time they get it.
Why do you do this?
To say young mums are desperate for their parents to die so they can get hold of the inheritance is just sick.0 -
Careful George.......
Sheriff Devon is onto you,theres gonna be a pistol whipping boy.
Round me up a posse..................Official MR B fan club,dont go............................0 -
Graham_Devon wrote: »Why do you do this?
To say young mums are desperate for their parents to die so they can get hold of the inheritance is just sick.
I think the s is in error.
Not specifically just young mums, anti boomers in general, and yes it is sick, well disturbing, that there is so much envy and coveting going on."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
So the debt could be inflated away - how exactly would this work?0
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moneyinmypocket wrote: »So the debt could be inflated away - how exactly would this work?
Relativity and money out of the air?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
moneyinmypocket wrote: »So the debt could be inflated away - how exactly would this work?
you owe £100k on a mortgage earn 25k , inflation and wages go up but the debt stays fixed (minus the interest which needs to be replayed)
After 10 years at 10% inflation the wages are now 59k and even with no capital repayment the amount owed is now 1.69 times salary.
If instead we stick to 2.5% inflation then wages end up as £31k and with no capital repayment the amount owed is 3.2 times salary.
There are bad effects as well however such as imports getting more expensive and eventually money becomes worthless like Zimbabwe but it puts the massive inflation of the 70s into context.0
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