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What would you do with your savings if inflation really kicked in?

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Comments

  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If inflation kicked in I would expect

    A for the BOE to raise rates
    B for the banks to be giving better savings rates as there would be no more QE
    C for the govt need to borrow and perhaps index linked certs to come back onto the market
  • lalman
    lalman Posts: 279 Forumite
    edited 30 September 2014 at 1:01PM
    Lets not forget the government still has a 100bn deficit which will also have a drag on aggregate demand in the economy... as they reduce it.
    My Goal: From 1st of Jan 2015 to 31st of December 2015 is to save 30000.

    48.78% towards 2015 target.

    105.3% towards 2014 target. :j
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    lalman wrote: »
    Lets not forget the government still has a 100bn deficit.
    ...and the rest. Tesco has got nothing on the Government when it comes to shoving liabilities off the balance sheet...PFI...Taxpayers guarantees to the banks and Osborne's sub prime Help to Bubble mortgages...
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    atush wrote: »
    If inflation kicked in I would expect

    A for the BOE to raise rates
    B for the banks to be giving better savings rates as there would be no more QE
    C for the govt need to borrow and perhaps index linked certs to come back onto the market

    Thats so old fashioned. I would expect them to fiddle the statistics and print more money..
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • vmp
    vmp Posts: 37 Forumite
    Thanks for your replies

    These are my investments I've bought when giving some thought to inflation:

    Kames Inflation Linked
    Artemis Global Energy
    Blackrock Gold and General
    M&G UK Inflation Linked Corporate Bond
    Sarasin Food and Agricultural Opportunities
    Junior Oils Trust

    Blackrock World Mining Trust

    Gold coins

    I don't really understand or am convinced of how they would actually fare in a high inflation environment though, I more bought them and am keeping my fingers crossed!

    I'm probably more mindful of deflation as well, at least in that I hold more cash than anything else. Having said that, I'm a little suspicious because the media seem to be talking about it a lot lately - and that's normally when the opposite happens ;)
  • jabba42
    jabba42 Posts: 137 Forumite
    I have held off on the precious metals. I am Glad I listen to Martin Armstrong all the way down. I know people who bought gold at 1800 and silver at 40 and are hanging on to their investments.


    There are numerous sites where victims huddle together and console each other that the end is coming and how smart they are going to be in the long term. The reality is if a share bombed 50% like Tesco has you would not be feeling so smart.


    Gold and silver are lining up to be a fantastic buy but I for one am waiting for Mr A's buy signal whilst the metals continue to destroy many people's wealth.
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Glen_Clark wrote: »
    Thats so old fashioned. I would expect them to fiddle the statistics and print more money..

    "they" I assume you mean politicians here, no longer have control of the BOE. And if inflation spikes there will be no QE (ie printing money). When printing money stops, the banks will s till need money and will get it from depositors.

    I realize the term depositors is old fashioned, but it is part of normal 'old fashioned' banking.
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    edited 1 October 2014 at 2:58PM
    atush wrote: »
    "they" I assume you mean politicians here, no longer have control of the BOE.
    Of course not ;)
    Gideon, sorry George, Osborne just hires the boss of the BOE on a £million++ pay package, thats all ;)
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • JohnRo
    JohnRo Posts: 2,887 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    atush wrote: »
    When printing money stops, the banks will s till need money and will get it from depositors.

    http://www.zerohedge.com/news/2014-09-30/another-conspiracy-theory-becomes-fact-feds-stealth-bailout-foreign-banks-goes-mains
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
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