TheCountOfNowhere Posted July 25, 2016 Share Posted July 25, 2016 http://www.bbc.co.uk/news/business-36837844 The BBC should be shut down IMHO. Quote Link to comment Share on other sites More sharing options...
spunko2010 Posted July 25, 2016 Share Posted July 25, 2016 The only way to harm the BBC is to cut off its funding. Cancel the DD. Quote Link to comment Share on other sites More sharing options...
anonguest Posted July 25, 2016 Share Posted July 25, 2016 (edited) http://www.bbc.co.uk/news/business-36837844 The BBC should be shut down IMHO. God give me strength! (and I say that as a card carrying aetheist!) Edited July 25, 2016 by anonguest Quote Link to comment Share on other sites More sharing options...
billybong Posted July 25, 2016 Share Posted July 25, 2016 (edited) http://www.bbc.co.uk/news/business-36837844 The BBC should be shut down IMHO. +1 Always they look at it from the point of view of the heavily indebted (and by implication the issuers of debt). Edited July 25, 2016 by billybong Quote Link to comment Share on other sites More sharing options...
Riedquat Posted July 25, 2016 Share Posted July 25, 2016 Anyone care to give a summary? I suspect the article might be NSFW (because yelling and putting my fist through the monitor might get me in trouble). Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted July 25, 2016 Author Share Posted July 25, 2016 Anyone care to give a summary? I suspect the article might be NSFW (because yelling and putting my fist through the monitor might get me in trouble). Sure. BBC. Bunch of c**ts. Ok ? (IMHO) Quote Link to comment Share on other sites More sharing options...
“Nasty Piece of work” Posted July 25, 2016 Share Posted July 25, 2016 Basically, the BBC would make more economic sense if it advocated tugging off dogs. No shame. Quote Link to comment Share on other sites More sharing options...
Riedquat Posted July 25, 2016 Share Posted July 25, 2016 Sure. BBC. Bunch of c**ts. Ok ? (IMHO) So about what I expected, cheers! Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted July 25, 2016 Author Share Posted July 25, 2016 So about what I expected, cheers! Quote Link to comment Share on other sites More sharing options...
mubes Posted July 25, 2016 Share Posted July 25, 2016 Just for the sake of balance!!! BBC didn't say anything slightly controversial here. They just say moderate inflation can be good for a stuttering economy. They do concentrate on debt too much, granted. But my alevel economic level understanding is inflation is a form of short stimulus, cos people want to avoid deflation of assets, so it encourages spending, decisions, liquidity, speeds up cash flow. So with a threat of recession, moderate inflation is probably not unwelcome to gov. Quote Link to comment Share on other sites More sharing options...
Venger Posted July 25, 2016 Share Posted July 25, 2016 Never posted it before, but in darker moments, I'm astonished by some positions, and to know those pushing it are often the ones owning the higher end nice homes, or want you to join them in massive mortgage debt. 'Inflation inflation inflation'. Simples. Rivers of red ink for the inflation ride to paradise. "Bought my house for £5K.... today it's worth £425,000." Wooo. That was then, this is now. Get it crashed and let younger buyers buy family homes, in a downsize switch. Creditors and savers don't want to be crushed by their positions being worth far less. Especially against runway mad forever HPI rates of inflation. The major economic drama will be the struggle between the market and government over the liquidation of debt. Political authorities will prefer to wipe away debt surreptitiously through inflation. But to inflate away bad debts also means inflating away good credits.Market participants will seek to preserve the value of their assets denominated in money. To the extent that they succeed, they will make it harder to repay excessive debt in cheap money, and thus make the system more vulnerable to overt default and deflation.Determined reflation, because of its disastrous consequences, would be a foolhardy policy. We expect and hope the authorities will submit to the dictates of the market, and take steps to restore the economy and the government to solvency. This would mean deflation - letting the bad debt be liquidated. Deflation to prevail over inflation. Creditors to prevail over debtors. Financial assets selectively repudiated by default, not obliterated by inflation. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted July 25, 2016 Author Share Posted July 25, 2016 (edited) Pubes is posting again. Just saying like. Edited July 25, 2016 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
renting til I die Posted July 25, 2016 Share Posted July 25, 2016 (edited) Anyone care to give a summary? I suspect the article might be NSFW (because yelling and putting my fist through the monitor might get me in trouble). A summary. BBC says that the 1970s were great because the inflation, that everyone loved, made your debts disappear like magic! Oh, hang on, anyone who lived though the 1970s might not think that it was that great. You know rising food prices, no gas for the car, not having a job, or if you had a job the wages not going up as quick as everything else! Edited July 25, 2016 by renting til I die Quote Link to comment Share on other sites More sharing options...
mubes Posted July 25, 2016 Share Posted July 25, 2016 Pubes is posting again. Just saying like. If I'm not welcome here, I'll spot posting. I'm not here to fight! Just trying to provide some balance I'm no expert. I just thought deflation was generally considered a pretty bad thing. Quote Link to comment Share on other sites More sharing options...
Venger Posted July 25, 2016 Share Posted July 25, 2016 Your pineapple going up in price? Inflation there good thing? Someone would have to explain to me how that may lead to wage-inflation. (Follow on videos talk about clothing imports rising in cost / food import inflation.) Local (UK) wage inflation is the only 'good inflation' imo - and that's when it's not forced into being, causing us to be uncompetitive. Wage inflation is the only kind of inflation that boosts house prices. Inflation in everything else (food, energy, medical) just takes away from the money people have to spend on housing. (etc) There were winners and losers from Cold War 1970s inflation. Those in sectors who got the pay-rises, and others who did not. Quote Link to comment Share on other sites More sharing options...
Riedquat Posted July 25, 2016 Share Posted July 25, 2016 (edited) Just trying to provide some balance I'm no expert. I just thought deflation was generally considered a pretty bad thing. People do seem to think that, but it usually comes across as something they've been told and don't question rather than something they've given any thought to. The argument that it puts people off spending probably isn't true (not that that would be a bad thing anyway, since so much of it is a debt binge). There's stuff people buy regardless, like food, and it doesn't seem to put people off buying things that do go down in price, like electronics. Edited July 25, 2016 by Riedquat Quote Link to comment Share on other sites More sharing options...
thewig Posted July 25, 2016 Share Posted July 25, 2016 The #VileBBC have been caught broadcasting state propaganda? Quote Link to comment Share on other sites More sharing options...
Parkwell Posted July 25, 2016 Share Posted July 25, 2016 BBC didn't say anything slightly controversial here. They just say moderate inflation can be good for a stuttering economy. Just for the sake of accuracy. The only reason the BBC gave for inflation being good is to make debts easier to pay off, especially your mortgage, provided your salary also rises. Now I'm off to borrow loads of money and vote for endless inflation. Lesson learnt. What was that bit about wages again? Oh look, pretty house! Quote Link to comment Share on other sites More sharing options...
The Young and the Nestless Posted July 25, 2016 Share Posted July 25, 2016 ...to make debt shrink in real terms, we want more inflation... It seems salaries and savings shrinking in real terms are not a problem for him? Or translated: "Let's convert private debt to public debt via QE at great expense of everyone who has a savings account, pension, or salary" The one-sidedness betrays a worrying misunderstanding of the real economy. Now, if your aim is to improve the real economy via infrastructure/green energy/transport/defence/other projects/helicopter money spending, which will lead to jobs and economic activity, then inflation will still be a by-product, but so will increased economic demand, salaries and savings (more so than the 2009-2012 QE trickle-down approach). Quote Link to comment Share on other sites More sharing options...
silver surfer Posted July 25, 2016 Share Posted July 25, 2016 All bit hypothetically daft. Inflation? Who realistically expects any material inflation over the next decade? Ultra low inflation/deflation seems baked into the west's prospects, which also means ultra low interest rates. So in the absence of higher inflation and higher interest rates, what's likely to bring about lower house prices? S24 seems the best candidate. Well over half of all new builds are bought by BTL landlords, remove leveraged BTL landlords from the demand side and there's a chance that first time buyers will have more negotiating oxygen to breath. Quote Link to comment Share on other sites More sharing options...
mubes Posted July 25, 2016 Share Posted July 25, 2016 People do seem to think that, but it usually comes across as something they've been told and don't question rather than something they've given any thought to. The argument that it puts people off spending probably isn't true (not that that would be a bad thing anyway, since so much of it is a debt binge). There's stuff people buy regardless, like food, and it doesn't seem to put people off buying things that do go down in price, like electronics. So on a scale of 1 to 10. where do you stand on 'moderate inflation is good for the general economy' where 1 = it's not good in general, any positive is purely for benefit of the indebted, any other touted benefits are all state propaganda and lies and 10 = i can see why some economists might see it's a good thing, but I don't personally think they are correct. Quote Link to comment Share on other sites More sharing options...
Riedquat Posted July 25, 2016 Share Posted July 25, 2016 Just for the sake of accuracy. The only reason the BBC gave for inflation being good is to make debts easier to pay off, especially your mortgage, provided your salary also rises. I've never even figured that one out, really. That would mean that the lenders lose out, and they're not going to do that (on average, at least). More inflation would just mean that interest rates got up. Quote Link to comment Share on other sites More sharing options...
Riedquat Posted July 25, 2016 Share Posted July 25, 2016 So on a scale of 1 to 10. where do you stand on 'moderate inflation is good for the general economy' where 1 = it's not good in general, any positive is purely for benefit of the indebted, any other touted benefits are all state propaganda and lies and 10 = i can see why some economists might see it's a good thing, but I don't personally think they are correct. I don't see that they're opposite ends of a scale. Quote Link to comment Share on other sites More sharing options...
mubes Posted July 25, 2016 Share Posted July 25, 2016 All bit hypothetically daft. Inflation? Who realistically expects any material inflation over the next decade? Ultra low inflation/deflation seems baked into the west's prospects, which also means ultra low interest rates. So in the absence of higher inflation and higher interest rates, what's likely to bring about lower house prices? S24 seems the best candidate. Well over half of all new builds are bought by BTL landlords, remove leveraged BTL landlords from the demand side and there's a chance that first time buyers will have more negotiating oxygen to breath. Inflation won't lower house prices will it? I thought that inflation and price were positively correlated? So high inflation = more spending = higher house price. Meaning that if cash is being deflated, the market is more likely to move into other assets, such as property. Quote Link to comment Share on other sites More sharing options...
Oliver Sutton Posted July 25, 2016 Share Posted July 25, 2016 If I'm not welcome here, I'll spot posting. I'm not here to fight! Just trying to provide some balance I'm no expert. I just thought deflation was generally considered a pretty bad thing. What do you reckon the "sweet spot" for inflation is? 8-12% ? Quote Link to comment Share on other sites More sharing options...
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