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House Price Crash Forum


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About PSmith

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  1. When OPEC started they allowed countries to produce oil based on the amount of their reservse. After they announced this all the oil producing countries suddenly upped the estimates of their reserves. This gave them the right to produce more oil and so make more money. It will only take one of the big Saudi oil fields to start to produce less to put the world into a real turmoil. I don't like the word produced or production as it is really just a term for extracting oil from a hole in the ground.
  2. Nice article. I know the Chinese aren't at all happy with our quantitative easing and the US weren't happy with China's unwillingness to up it's currency against the US dollar. The US and UK can now achieve the same result as the Chinese putting up the value of the Yuan with quantitative easing reducing the value of the pound sterling and US dollar. It is a good way of reducing debt but it is very difficult for people who have saved money as low interest rates and currency devaluation will mean savers get hit hard. I would like to know how long is it before inflation kicks in and when it does are BoE interest rates going to go up or would they still stay low? Can the UK manage without investment from foreign countries if we lose our credit rating? When the government borrows money, who does it borrow it from? Are the people they borrow it from going to be very rich when/if they get it paid back?
  3. Most people work about 220 days per year after subtraction of holidays and sick pay. 220 * £200 = £44,000 220 * £500 = £110,000 The the upper is ridiculous when you consider that that equates to about 16 Indian years of work. Or 220 years of an Indian policeman's salary. Contractors don't have to pay the same national insurance permanent workers have to pay, they usually pay themselves a minimum wage of about £6 per hour and then take the rest as dividends. This means that they pay less national insurance than a low paid worker and take home more that the equivalent permanent worker on the same wage. We live in a competitive meritocratic society, there is a reason work is off-shored and in-shored it is because it is cheaper to get it done that way. A lot of people get paid too much, usually this is people paid out of the public purse; doctors, lawyers, BBC directors and contractors brought in by the government. They are people who are paid by someone who is not actually getting the service.
  4. The wage an Indian gets is about £30 per day in India. The company I work for has several offices in Mumbai and an Indian costs about £80 to per day on the charge out rate but that rate includes their pc, office space administration and management charges. I was just comparing the wage of an Indian with the wage of a contractor. The benefits are cost.
  5. I loved his speech at the EU to Gordon Brown. He'd get my vote after that.
  6. Yes, there always will be a market for contractors, but it may never be as big as it has been which means that a proportion of contractors won't be having a long lucrative career. If you want meritocracy and are as good as you rate yourself you probably will have successful career as a contractor but there are plenty of contractors who's work can be done by Indians for a fraction of the price. Like I said earlier you would have to be able to do the work of 10 Indians to justify the difference in cost so you would have to be very good or be able to do work that the Indians can't do.
  7. I must say I would find it really difficult to sign a petition to support someone to get a £450 per day job which is what's being asked and also why there is a lot of bad feeling on this board. Wickywackywoo, do you really think you are worth £450 per day when there are Indians willing to do the same job for a fraction of the price?
  8. They don't speak it as their main language if speaking to someone who has the same native language, but like I said earlier their are loads of different languages in India (Gujarati, Hindi, Marathi) and if educated Indians from different districts or religions want to talk to each other they will often speak in English. A lot of the schools also teach everything in English.
  9. Nearly all Indians in Mumbai speak English. There are loads of different Indian languages and what you know will depend on where you come from and what religion you are. The only common language in India is English. At least they now have something to thank us for from something that came from the British Empire.
  10. Romainians and Bulgarians don't have English language as there main language. Also, there aren't a billion of them like there are Indians. Once enough Indians have been attracted to IT their salary will be squeezed too. We think we live in a democracy where the government will do what the majority of the people want them to do. We really live in a country ruled by industry. All we can do is a look at two or three very similar parties, read their manifesto and somehow decide to put a tick in one box once every five years. Industry has lobbyists paid for by industry with entertainment expenses their full time job is to get their way with the government. That's why we have massive on-shoring and offshoring, it's what industry wants.
  11. I have a permanent job with an IT company. We have started offshoring and on-shoring work. All contractors have gone and are now replaced with on and offshore workers. They get paid about £7,000 pa in India to do the same job we do here. When they come over here they are given their Indian wage (£7k) and a living allowance for living expenses over here which amounted to £2,600 per month (after tax); this is cheaper than a contractors who normally charge about £2,000 to £2,500 per week. The £2,600 is for living expenses but they normally take the cheapest bedsit they can find for about £140 per month, live off eggs, toast and lentils and save every penny they can to take back to their families. If you are a contractor the competition is tough, Indians come out of University with Microsoft certificates included with their degree. They can afford to work for less money as for example a policeman in Mumbai will earn £500 per year and be expected to support a family on this. So if they can work in the UK and save £2,000 per month that equates to big bucks in India. Recently our company have saved even more money by finding accommodation for the Indians and paying the bills (council tax, electricity, water rates...). These are normally two bedroomed flats that they will put two Indians in. For finding accommodation they reduced their living allowance to about £1,200 per month (a £1,400 reduction). You can imagine that the Indians now aren't too happy with the reduction in their allowance either. Meanwhile, all the British workers are getting pay freezes. It doesn't seem great whoever you are, a contractor, an Indian, a permanent member of staff; things are getting worse. There is no way in the current climate that a firm will willingly take on a contractor for £450 per day if they can get the same work done in India for £30 per day. In fact even if a contractor could do 10 times the amount of work an Indian could do they wouldn't get a job. There are over one billion Indians a lot of them are young and have degrees in Computer Science and have professional certificates. We have to face it, we are living in a global market, we buy our electronic items from China, our software from India, our industry has been offshored to Eastern Europe. It's simple market forces. Luckily for us though we have our banks and financial markets to rescue us.
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