Barclays warn of coming 'Inflation Storm'

Conrad

Lotus-eater wrote: »

I know, I covert my neighbours 2 pigs....... and I think I've broken more than one of the ten commandments there. Straight down for me

Ah the 10 commandments. You can't win - if you have wealth and flaunt it you break the pride commandment, if you covert your neighbours !!! ( ) you break another.

Conrad

!!!!!!? wrote: »

Most of the 'real' well-off sorts are quite conservative and don't go in for ostentatious shows of their 'wealth' - they have nothing to prove.

Yes, I've long noticed this. Old volvos seem popular amongst the rich farmers here.

Even those understaded farming dynasties show off though, although in a more discreet manner - they ski in the best Swiss resorts, they drop hints at how lucky they were to sell off those old stables for development.

I agree with you, it's pleasant to be contented and comfortable. Sometimes I marvel at people that have grown huge companies and become very wealthy but then often as not you find out they had masses of parental financial support in the early years, so had a great advantage over the rest of us. We can all take huge risks when we know Daddy has several million in the Bank.

A prime example is someone I know who bought a huge house well beyond his salary means. He did this because he had a hunch he could get planning to develop the huge garden into houses, which sure enough he has been able to do.
He could only take this risk because he and his wifes parents are very wealthy and could assist with any cash flow problems, for example if planning wasn't granted the parents would have paid down the debt.

Now they lord it about as they feel they have achieved a higher status than most around them, which really is a very odd and poor way to conduct themselves. Many of us could have achived this outcome if only we had rich parents - it has little to do with business skill.

I'm not jealous though:rotfl:

Rabiddog_2

Its covet (my neighbours !!!). The SAS for instance, engage in covert missions.
www.google.co.uk/search?hl=en&defl=en&q=define:covet&sa=X&oi=glossary_definition&ct=title

Who needs money when you get to correct others spelling

tradetime

Rabiddog wrote: »

Its covet (my neighbours !!!). The SAS for instance, engage in covert missions.
www.google.co.uk/search?hl=en&defl=en&q=define:covet&sa=X&oi=glossary_definition&ct=title

Who needs money when you get to correct others spelling

No, when you're messing about with your neighbours pigs I suspect it's best done covertly.

Lotus-eater

tradetime wrote: »

No, when you're messing about with your neighbours pigs I suspect it's best done covertly.

:rotfl:
Absolutely, you spotted the deliberate mistake then

dopester

I'm another believing after the intial inflationary period we'll be in for deflation for many years to come.

Not good for people with their wealth in property and a lot of debt to go with it. Deflation is coming and they will have to full-on snog it.

It's the credit contraction worsening that is the key to deflation - and it's unavoidable it will get worse. Look at the state of the banks fgs. Begging bowls out for middle-eastern investment, sweating a record rights-issue goes through.

We're in a position where some of our major banks have had doubts cast over their survival. One has gone under. How messed up is that? You really think they are going to carry on spunking up the money as freely as before. And they can't borrow to lend to securitise elsewhere like they did before.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/30/ccbis130.xml&page=1

"These fears are not groundless. The magnitude of the problems yet to be faced could be much greater than many now perceive," it said. "It is not impossible that the unwinding of the credit bubble could, after a temporary period of higher inflation, culminate in a deflation that might be hard to manage, all the more so given the high debt levels."

The BIS cautions the ECB to handle its lending data with great care. "The statistics may understate the contraction in the supply of credit," it said.
The death of securitisation has forced banks to bring portfolios back on to their balance sheets, while firms in need are drawing down pre-arranged credit lines. This is a far cry from a lending recovery.
Warning signs are flashing across Eastern Europe (ex-Russia) where short-term foreign debt is 120pc of reserves, mostly in euros and Swiss francs. Current account deficits are 14.6pc of GDP.
"They could find it difficult to secure foreign funding if global financing conditions were to tighten more severely," it said. Swedish, Austrian and Italian banks have drawn on wholesale markets to lend heavily to subsidiaries across the region. This could "dry up"

dudleyboy

MissMoneypenny wrote: »

Asda has promised to sell ten staple items, including bread, eggs and butter, for only 50p from today as part of a campaign that it claims will win over thousands of shoppers from rivals.

And what did most people probably do?

They probably bought far more than they were able to consume ("cos it's only 50p!!!") and will end up throwing the vast majority of it away. I fear it will take a long while yet before the Great British public change their ways. :sad: :wall:

Meanwhile...

http://news.bbc.co.uk/1/hi/business/7481882.stm

posh*spice

http://www.minyanville.com/articles/GS-Bernanke-Fed-Credit-xom-economy/index/a/17804

More deflatinary doom & gloom:cool::eek:

dopester

posh*spice wrote: »

http://www.minyanville.com/articles/GS-Bernanke-Fed-Credit-xom-economy/index/a/17804

More deflatinary doom & gloom:cool::eek:

Deflation Has Set In

It's amusing that in the face of this carnage, many are still screaming inflation, stagflation, or even hyperinflation simply because food and energy prices are rising. Deflation is here and now in the U.S. Deflation is knocking on the door of the UK and the Eurozone. And there's nothing that can be done about it.

Thanks for the info / link. Printing your way out of deflation is a non-starter. Raising the money supply or adding more and more zeros doesn't work. You might as well say the Gov has a cure for cancer - by taking you out and shooting you. The printing press "cure" for deflation is worse than the disease.

Central banks don't have magic powers. They can create liquidity by creating debt, but that's not the same as creating capital. Any time a central bank monetises an asset by buying it (essentially printing press money) it also creates a liability. Only markets can create capital by valuing assets above liabilities. Switching the printing presses on to full speed destroys more wealth than it creates.

tradetime

Well that should be entertaining for HPC crowd if indeed it is the future, when they finally get the crash they so desperately wanted, it's all to no avail, houses will still be as far out of reach as ever, the only difference is, so will most other things. Such is deflation, as said before. "be careful what you wish for......"