Jump to content
House Price Crash Forum
Sign in to follow this  
manterik

The Importation Of Inflation

Recommended Posts

imported good's will go up in price in the next few months !!!

The weak pound, coupled with the fact that we import a depressingly large proportion of our needs, will mean thatp rices will go up of these items.

This is a huge issue, and it is a huge fallacy that the weak pound is good for our economy, and that this will help exporters. Exporting what exactly? And to whom? The demand from abroad is very weak, and the facts bear this out, with manufacturing output absolutely slumping.

Interest rates will have to rise at some point, I can't see any other way.

On the plus side, My Dad might FINALLY get that TV he has been on about for years to replace his 21" Crap-box which makes high pitch whistling sounds he can't hear because he's too old but which drive me mad! :lol:

Share this post


Link to post
Share on other sites

The key point about the electronics industry is that it is not built on revolutionary must have new products but upgrades.

Take plasma TV's I have one on my wall 4 years old cost 1700 quid when I bought it. Today I could if I beleived the marketing have a bigger one or an HD one all for less than 1000 Quid.

The fact is that I do not need one as mine still works perfectly OK. You can say the same for Ipods, laptops, mobile phones, etc, etc.

The real question is what will people do with the discretionary money they have?

My vote is a mixture of pay off debts, take short holidays and do the house up bit by bit.

Either way the electronics retailers and the electronics manufacturers in Japan and South East Asia are in for a really tough time. This is why countries with big Manufacturing surpluses are going to get hit very very hard in this recession.

Share this post


Link to post
Share on other sites
On the plus side, My Dad might FINALLY get that TV he has been on about for years to replace his 21" Crap-box which makes high pitch whistling sounds he can't hear because he's too old but which drive me mad! :lol:

I still have a 21" 'Toob' telly with sky tv and I've yet to see an all singing plasma/LCD tv that betters the quality of the picture tbh.

D

Share this post


Link to post
Share on other sites
Damn those Japs and their strong Yen! It's all their fault my plasma's now 599 not 499!

Ahh the ubiquitous Plasma! Not an Economic article is written these day’s, it seems, without using this beast as the ultimate example of a Credit obsessed world.

Share this post


Link to post
Share on other sites

an old CRT is good enough for me

who cares about all that 4 grand plasma ********

hardly watch tv these days , i could easily live without it

comp is harder to give up though hahaha

Share this post


Link to post
Share on other sites
Damn those Japs and their strong Yen! It's all their fault my plasma's now 599 not 499!

I've been waiting for the price of a 32 inch to go under 300 in a shop that I can collect from.

They did this at Christmas in the sales, but they sold out before I could get to a shop.

I've been waiting 3 years for this point and now it has been reached, if they go back up again, I will just wait a bit longer.

tim

Share this post


Link to post
Share on other sites

;) but the falling demand (recession) will just cause orders to collapse. Can they cut back on production / mothball factories / lay off workers fast enough ?

What is internal demand like in Japan?

Oh did they have deflation ? ;)

Share this post


Link to post
Share on other sites

The technology market is bust. Exporters of TVs, mobile phones, you name it are in for very bad times.

No wonder they want to prop the pound up!! If a brit wont buy, nobody else will. Nobody wants the stuff anymore.... no demand for anything.

Actually, I expect a come back of TV engineers. There are many people out there with the skills, it's just that over the past few years when goods broke they were simply binned and replaced.

Edited by Craig77

Share this post


Link to post
Share on other sites
Empire failure hits customers

21 hours ago

Hundreds of consumers are likely to be left out of pocket because of the collapse of electrical goods retailer Empire Direct, it has been revealed.

Business restructuring firm KPMG said 5,800 customers had not received their orders. Of these, 4,800 paid by card and, using banking industry data, the administrators estimate just over 4,000 of these will be able to claim a refund from their card issuer.

The remaining customers will become unsecured creditors of the company and can lodge a claim with the administrators, although a payment is not expected.

http://www.google.com/hostednews/ukpress/a...UOpQeFkkFKG6cZQ

Share this post


Link to post
Share on other sites
I've been waiting for the price of a 32 inch to go under 300 in a shop that I can collect from.

They did this at Christmas in the sales, but they sold out before I could get to a shop.

I've been waiting 3 years for this point and now it has been reached, if they go back up again, I will just wait a bit longer.

tim

Why would you want to collect something that big? Most on-line retailers deliver for nothing (unless you want it next day)and have a warranty that will invove them collecting from you in the event or a fault.

Share this post


Link to post
Share on other sites
Nice to see the on-message BBC reporting the rise in electronics goods prices is down to the strong yen rather than the weak pound.

http://news.bbc.co.uk/1/hi/business/7848591.stm

I saw that, made me laugh. The BBC News is so under the thumb, yet they are capable of making decent economic / current affairs programmes, like last night's one on the 1929 crash.

For certain imported inflation is on the way; that said demand for non-essential goods will diminish - people won't have the money or the confidence to 'invest' :lol::lol::lol: in these items.

It is a particularly tragedy that self-sufficiency in energy and food not been on the political agenda. We don't even own much of our water! How many great British companies are British, meaning where is the 'wealth' generated going?

Globalisation, uh, what is is good for... absolutely nothing, uh

^^^ OK a bit extreme, but globalisation, when it has meant the asset stripping of nations, has failed us.

Share this post


Link to post
Share on other sites
The weak pound, coupled with the fact that we import a depressingly large proportion of our needs, will mean thatp rices will go up of these items.

This is a huge issue, and it is a huge fallacy that the weak pound is good for our economy, and that this will help exporters. Exporting what exactly? And to whom? The demand from abroad is very weak, and the facts bear this out, with manufacturing output absolutely slumping.

I disagree: for any given level of demand, exporters will be better placed given a more competitive (within reason; complete collapse is something else) valuation of sterling.

Given that our economy has been blighted by over-consumption and a ballooning trade deficit, something has to give. As far as I can see there are two ways of reducing consumption:

1. fiscal measures; people can't spend what's been taken off them in tax. The tax revenue could then be spent on debt servicing and repayment, which would strengthen sterling.

2. letting interest rates fall so that the exchange rate declines.

If we don't choose 2 then we must embrace 1 and all its consequences (unless we believe we can continue to roll over debt perpetually, while borrowing ever-more to meet interest payments).

Whatever we choose, consumption must fall. Anybody who doesn't accept this needs take a look at our recent trade deficit, and explain who exactly is expected to pay for continued consumption at current levels.

Basically there is no pain-free way forward.

Share this post


Link to post
Share on other sites
The weak pound, coupled with the fact that we import a depressingly large proportion of our needs, will mean thatp rices will go up of these items.

This is a huge issue

yeah nulab, tory. spin your way out of this one.....

an old CRT is good enough for me

who cares about all that 4 grand plasma ********

hardly watch tv these days , i could easily live without it

comp is harder to give up though hahaha

same here. the internet is now my key entertainment item.

the telly ill put on if theres something good, which is rare.

im disturbed a little as i was a deep seated tv man before all this shit happened.

had the morons in charge kept things on an even keel i probably still would be a tv man, with a mortgage and no complaints. now im cheesed off and being forced into shifting my funds out of the £, which is unpatriotic but i feel i have been lined up as the fall guy for the balls ups of others.

go gold go gold go gold...

Share this post


Link to post
Share on other sites

It will be interesting to see how the "rip off britian" trend plays off against the "imported inflation" trend.

In short its been clear for some years that retail prices in the UK have been higher than those abroad for electronic goods. Not because of any of the spurious reasons given (localisation etc) but simply because firms are pitching their products at what they think the market will bear and the UK market has been able to bear higher prices for some time. Not because we're particularly richers it is now clear, but presumably because we've been happier to put it all on plastic. Anyway its long been clear for example that you can buy electronic kit in the US for the same $ number as you pay in £ - ie we're being ripped off.

Imported inflation does mean that the prices should go up. However when set against the fact that companies have long been setting their prices in the UK higher than elsewhere because the market will bear it they should logically find that they need to reduce their real prices and maintain their sterling prices at their already inflated levels. This should logically lead to an erosion of the price differenial as manufacturers reduce the UK premium which we can't pay anymore as we're now the new poor.

That would be logical but when has economics ever been logical. Have to watch how things play though as prediction has never been my strength.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.