Monday, Jun 08, 2009
Inflation monster to slay debt dragon?
Guardian: Get ready for interest rates to rocket
Interesting piece from Friday's paper. Suggests inflation will get us in the end.
Posted by letthemfall @ 01:39 PM (1400 views) Add Comment
8 Comments
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1. peter_2008 said...
http://www.telegraph.co.uk/finance/financetopics/oilprices/5474214/Petrol-soars-to-1.39-per-litre.html
It's more likely to be stagflation. The wage reduction is already happening widely across the board (unless you are in one of those public sector non-jobs in that case you probably have got your pay rise already.)
However, the CPI is staying studborn high and will definitely get higher with oil price rising again (and thank to GB's 2p tax). The QE only helps to sustain and raise the assets bubble (which is benefitial to the riches); but fail to help inflating wages, which is what ordinary people really need to pay everyday's rising bill.
I can imagine how hard life is for people got 10% pay cut and 5% inflation. In an ironic way, I do hope they have big mortgages, because they can offset the CPI with RPI, at least for now.
2. Ilejustwait said...
I would think twice before you take on a morgage at present
Interest rates,because the only way banks/lenders can even
Start to try and balance there books would be to rise the
Interest rates,even if you fix the morgage for five years
I would have guess and say that you will be paying double
After the fixed rate is up,
YOU HAVE BEEN WARNED
3. nickolarge said...
This government will only put up rates if they want their share of the vote to drop below 10%. I think they will keep rates low at any cost.
4. alan said...
But....I thought Gordon was trying to reduce the NuLab share of the votes.
5. enuii said...
What the government wants and what the government will be forced to do are two completely different things. Anyone who thinks rates will stay as they are just because it's nice and convenient for politicians is just as deluded as they are. The UK is a big ship and unfortunately those who are steering her only have a little rudder and a two cylinder diesel engine.
6. Jinbal said...
anyone who thinks that the gov and BOE can control interest rates long term needs to do a bit of reading up on how the sovereign bond market works
7. jackas said...
Whatever it takes.
8. Jim said...
''unless you are in one of those public sector non-jobs in that case you probably have got your pay rise already''
I'm fed up with private sector clever dicks like you dissing the 'public sector' like it's a big waste of space. Public sector workers generally work very hard for little financial reward. Unless you put your money where your mouth is and never take advantage of public sector services (do you send your kids to state school, do you ever grace an NHS hospital or clinic (or a private facility staffed by people trained at tax-payers expense in the NHS etc etc), then show a bit more respect for people who YOU depend on for your lifestyle and well being.