getdoon_weebobby Posted April 21, 2009 Share Posted April 21, 2009 Wheres EDM?He was saying that RPI linked guff would protect you from inflation, had a big old thread about it. hopefully it will whenever we get out of this deflation deflation it is for now Quote Link to comment Share on other sites More sharing options...
Little Professor Posted April 21, 2009 Share Posted April 21, 2009 The government and the BBC have consistently used CPI as their main inflation measure whilst RPI was running at double the CPI. RPI barely rated a mention. See the BBC headlines from 2007, when RPI was running at 4-5% but CPI was around target: UK inflation rate lower at 2.7% UK inflation rate rises to 2.8% UK inflation holds steady at 2.1% UK inflation rate eases to 1.8% UK inflation rate stays at 1.8% They never mentioned RPI in their headlines until now. They even explained why: "The government cited three reasons why CPI was a better measure for the purposes of setting monetary policy:* it gives a more realistic characterisation of consumer behaviour * it gives a better picture of spending patterns in the UK * it is a more comparable measure of inflation internationally and represents international best practice." Quote Link to comment Share on other sites More sharing options...
InternationalRockSuperstar Posted April 21, 2009 Share Posted April 21, 2009 Rpi Goes Minus, Deflation it isBreaking news now on the box! I suppose this is supposed to serve as a pathetic excuse for some more money printing in tomorrow's budget. :angry: Quote Link to comment Share on other sites More sharing options...
getdoon_weebobby Posted April 21, 2009 Share Posted April 21, 2009 I agree. My daily Diet Coke at boots went up from £0.80 to £1.10 overnight. OK, so Coke wants its profits regardless of the sad state of the Pound - I'll have to chew coffee beans ... irn bru 500ml still holding strong at £69p (2 for £1.25) at my local shop Quote Link to comment Share on other sites More sharing options...
boynamedsue Posted April 21, 2009 Share Posted April 21, 2009 A few months ago ( about 5 ) I bought a pair of powered monitors and a condenser microphone, and I`ve just noticed on the web that they now cost about 60% more. Deflation my @rse.Unless of course deflation means price rises. Yes, the E-bay Monitor/Mike Index is the only true measure of inflation. You are Tommy Saxondale and I claim my £200. Quote Link to comment Share on other sites More sharing options...
the flying pig Posted April 21, 2009 Share Posted April 21, 2009 tesco cat food [which my cats much prefer to the premium brands] has skyrocketed from about £2.25 for a box of ten pouches to about £2.55 for the same. although they've changed the recipe from chunks with jelly to chunks with gravy... Quote Link to comment Share on other sites More sharing options...
FortuneFTB Posted April 21, 2009 Share Posted April 21, 2009 Relentless has just gone up from £1.09 to £1.24 in my local Onestop thats over 12%.. On the plus side Glucose boosts are on special offer @ £0.35 from £0.59... Interesting thread this Quote Link to comment Share on other sites More sharing options...
grumpy-old-man-returns Posted April 21, 2009 Share Posted April 21, 2009 this deflation thread is hilarious. Quote Link to comment Share on other sites More sharing options...
16bit Posted April 21, 2009 Share Posted April 21, 2009 I suppose this is supposed to serve as a pathetic excuse for some more money printing in tomorrow's budget. :angry: Yes, indeed. The government are really starting to step up a few notches now. In one year from now I expect the breakdown of the UK completely. Many people are going to die over this. Wait and see. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted April 21, 2009 Share Posted April 21, 2009 Wheres EDM?He was saying that RPI linked guff would protect you from inflation, had a big old thread about it. Good question. What happens to NS&I certificates now??? Quote Link to comment Share on other sites More sharing options...
Guest theboltonfury Posted April 21, 2009 Share Posted April 21, 2009 Good question. What happens to NS&I certificates now??? See if Geldof and Greer have an answer? Quote Link to comment Share on other sites More sharing options...
Limpet Posted April 21, 2009 Share Posted April 21, 2009 Yes, the E-bay Monitor/Mike Index is the only true measure of inflation.You are Tommy Saxondale and I claim my £200. Maybe it`s an age thing, but I don`t get it Quote Link to comment Share on other sites More sharing options...
three pint princess Posted April 21, 2009 Share Posted April 21, 2009 Good question. What happens to NS&I certificates now??? They pay about 1% and are index linked for June 2009 with a 3 month delay if sold after 2005 http://www.dmo.gov.uk/index.aspx?page=gilts/about_gilts Reference RPI 210.96667 1.08900 1.02581 1.08708 0.97160 1.04314 1.01540 1.09764 Quote Link to comment Share on other sites More sharing options...
hayder Posted April 21, 2009 Share Posted April 21, 2009 It is nice in such conditions to have a Nationwide bond at 4%. lucky bugger! never thought I'd envy anyone for getting 4% on a bond! Quote Link to comment Share on other sites More sharing options...
Guest LongBlackKilt Posted April 21, 2009 Share Posted April 21, 2009 lucky bugger!never thought I'd envy anyone for getting 4% on a bond! Imported fae the 'Vince Cable' thread: The inflation dilemma. Cable put up a table with Institute for Fiscal Studies figures showing that prices are going down for the wealthiest 20%, but going up (by up to 5%) for almost everyone else. This presents an unusual problem for policymakers, Cable said, because they have to decide whether they are fighting inflation or deflation. Mash-ups Rool [& Ah'm beginnin tae think the same aboot class struggle]. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted April 21, 2009 Share Posted April 21, 2009 Are we in a deflationairy spiral? Quote Link to comment Share on other sites More sharing options...
Guest Daddy Bear Posted April 21, 2009 Share Posted April 21, 2009 (edited) Are we in a deflationairy spiral? Come on guys this is embarassing. The statistics can say whatever the government want the people to believe - and the majority will. THEY ARE LYING TO YOU !! Most on here did not fall for the "everlasting house price boom mantra" & "no more boom & bust" - don't fall for this. Take out the effect of the falling mortgage repayments and the VAT reduction and you get a "Real Inflation" figure that is is still running at around 3% according to official figures. But this is a loadabollox too. "Really real inflation" - what is affecting the man in the street is running way above this. Global currencies will be thrashed - these figures are allowing them to do that. The world (ECB, FED, BOJ, BOE et al.) will print and print and print. A tipping point will come and the people will lose confidence in global currencies - asset prices will go ballistic as people seek refuge for their money in oil commodities etc. IR's are going to go sky high. Anyone buying a house would be mad to borrow at anything less then a 10 year fix. The majority on here have no idea what is coming - wake up. Have a look here at why the bond market will collapse soon - why ...and what th effects will be. http://www.housepricecrash.co.uk/forum/ind...p;#entry1816837 Edited April 21, 2009 by Daddy Bear Quote Link to comment Share on other sites More sharing options...
eternalrenter Posted April 21, 2009 Share Posted April 21, 2009 Come on guys this is embarassing.The statistics can say whatever the government want the people to believe - and the majority will. THEY ARE LYING TO YOU !! Most on here did not fall for the "everlasting house price boom mantra" & "no more boom & bust" - don't fall for this. Take out the effect of the falling mortgage repayments and the VAT reduction and you get a "Real Inflation" figure that is is still running at around 3% according to official figures. But this is a loadabollox too. "Really real inflation" - what is affecting the man in the street is running way above this. Global currencies will be thrashed - these figures are allowing them to do that. Good post. The deflationary stuff seems to be a red herring. Goe to the shops fod prices are getting much higher. The pound is devalued so imports more expensive. Inflation returning soon. Do you think its a good time to buy some gold???: The world (ECB, FED, BOJ, BOE et al.) will print and print and print. A tipping point will come and the people will lose confidence in global currencies - asset prices will go ballistic as people seek refuge for their money in oil commodities etc. IR's are going to go sky high. Anyone buying a house would be mad to borrow at anything less then a 10 year fix. The majority on here have no idea what is coming - wake up. Have a look here at why the bond market will collapse soon - why ...and what th effects will be. http://www.housepricecrash.co.uk/forum/ind...p;#entry1816837 Quote Link to comment Share on other sites More sharing options...
Um_Bongo Posted April 21, 2009 Share Posted April 21, 2009 I can't wait for the day we have both deflation AND higher house prices. The BBC will drown itself in its own jiz! Quote Link to comment Share on other sites More sharing options...
loginandtonic Posted April 21, 2009 Share Posted April 21, 2009 Bin sayin in for a long time now. 2 words: Holsten Pils A few months ago ( about 5 ) I bought a pair of powered monitors and a condenser microphone, and I`ve just noticed on the web that they now cost about 60% more. Deflation my @rse.Unless of course deflation means price rises. i see only rising prices, deflation stats are a fiddle - the vat cut and int rates drop - a fiddle fiddle fiddle and then fiddle some more -0.4% is nothing.something that was on sale for a tenner goes for £9.96 - so what. replace 15% VAT with 17.5% in £9.96 and you'd have £10.17, i.e. 1.7% inflation... exactly I suppose this is supposed to serve as a pathetic excuse for some more money printing in tomorrow's budget. :angry: this is what i think Quote Link to comment Share on other sites More sharing options...
betterToDo Posted April 21, 2009 Share Posted April 21, 2009 The world (ECB, FED, BOJ, BOE et al.) will print and print and print.A tipping point will come and the people will lose confidence in global currencies - asset prices will go ballistic as people seek refuge for their money in oil commodities etc. IR's are going to go sky high. Isn't the key thing whether the amount they print outweighs the impact of contracting credit and the dynamics of this process (I understand so far it doesnt and its a drop in the ocean by comparison, and most of it is just propping up bad assets/hiding risk for zombified banks, but I could well be wrong), and where the money they are printing is going? When they print money it affects the guy on the street much less than credit. Banks are playing us all like a fiddle, but I can't see how the population in general will experience anything other than relative deflation, alongside a drop in standard of living. As for people commenting on fuel, surely the government just added more tax recently and the oil price has risen a little, and as for prices in general, trying to distinguish price increases or drops given the recent devaluation of sterling is surely a pointless exercise? I agree heavy inflation is inevitable one day, but don't think it can be coming yet. When credit starts to expand again which requires a sustained return of confidence, at the end of that cycle, thats when we'll use fivers to keep warm. How can you have a credit bubble alongside a contracting economy? Surely you can't, can you? I read somewhere in this thread student loans are subsidised? Isn't the SLC a private company and if so which bank funds it, they must be raking it in from a captive loan audience + the taxpayer subsidising all the risk?!?! If thats true, which moron of a minister thought that would be a good move? Quote Link to comment Share on other sites More sharing options...
?...! Posted April 21, 2009 Share Posted April 21, 2009 bye bye house prices bye bye consumer collateral bye bye consumer credit bye bye consumer spending power bye bye discretionary spending bye bye demand hello oversupply hello lower prices Now there are two steps in the above that are very important and that is no business or supplier will cut the supply of their goods and/or services until they witness falling demand. Why would you? It is very difficult to create false demand to break the trend. People will save and pay down debt until they "feel" secure enough to consume in earnest. My own opinion is that by trying to borrow and spend your way out of deflation simply pushes that "secure day" ever further away. It is impossible, under any circumstances, to purchase sentiment. During the early years of deflation in the Japan the government sent out food coupons in the hope of increasing demand and breaking the spiral. Of course most consumers chose to save their coupons just in case they lost their jobs. Quote Link to comment Share on other sites More sharing options...
bobed Posted April 21, 2009 Share Posted April 21, 2009 (edited) How are we doing against the fan chart? Edited April 21, 2009 by bobed Quote Link to comment Share on other sites More sharing options...
winkie Posted April 21, 2009 Share Posted April 21, 2009 bye bye house pricesbye bye consumer collateral bye bye consumer credit bye bye consumer spending power bye bye discretionary spending bye bye demand hello oversupply hello lower prices Now there are two steps in the above that are very important and that is no business or supplier will cut the supply of their goods and/or services until they witness falling demand. Why would you? It is very difficult to create false demand to break the trend. People will save and pay down debt until they "feel" secure enough to consume in earnest. My own opinion is that by trying to borrow and spend your way out of deflation simply pushes that "secure day" ever further away. It is impossible, under any circumstances, to purchase sentiment. During the early years of deflation in the Japan the government sent out food coupons in the hope of increasing demand and breaking the spiral. Of course most consumers chose to save their coupons just in case they lost their jobs. So true, save and repay learn to live another free day. Quote Link to comment Share on other sites More sharing options...
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