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Well, I've Jumped In And Bought A House!


nicebuyer
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It depends on whether the debt was at fixed interest or not. I was merely highlighting the point that printing money indefinitely leads to a worse finale than allowing deflation.

My own mind has been made up for a number of years and that is that we are in for a good 5+ of deflation, nothing that has happened in the last 2 years has given me reason to change that opinion so i am happy to stay in cash predominantly, in what i believe to be the safest currencies

What about the FTSE being up nearly 1000 points in two months?

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What a lot of old 5hit.

The banks have parked the QE money on deposit with the BoE. The only thing QE has achieved is for the bond dealers to scream "Sold to you, Merv!" as they offload what are soon to become worthless gilts.

The supply of money available for house purchase is FALLING

You describe today (almost correct) I am anticipating tomorrow.

Don't forget all the banks have done is converted one form of paper for another, the other form being the stuff you will use to pay for things with..............tomorrow. Worthless gilts = worthless currency = worthless debt all achieved through currency destruction hence inflation hence the ability to pay your employees more worthless currency to pay off their ever diminishing worthless debt...............this is the FUTURE.

Anybody holding £'s on deposit today is tomorrows fool.

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You describe today (almost correct) I am anticipating tomorrow.

Don't forget all the banks have done is converted one form of paper for another, the other form being the stuff you will use to pay for things with..............tomorrow. Worthless gilts = worthless currency = worthless debt all achieved through currency destruction hence inflation hence the ability to pay your employees more worthless currency to pay off their ever diminishing worthless debt...............this is the FUTURE.

Anybody holding £'s on deposit today is tomorrows fool.

US is worse.

do you wanna buy a mint sandwich board with "the end is nigh" on both sides?

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more importantly, what happened to the population in Zimbabwe.

Who cares? I was merely making the referance to debt destruction.

So many people on this forum draw a conclusion that we now have Zanulabour Zimbabwe economics and then do not join the thinking up when it comes to their own personal finances.

I do not for the record think we will enter Zimbabwe land but as you know I believe that all this will be inflationary (high).

Yesterday I drew a list of things that were going up...........today you can now add wholesale gas prices and electricity to the list of other commodities................could somebody please direct me to something that is going down in price? Deflation my ****........

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Who cares? I was merely making the referance to debt destruction.

So many people on this forum draw a conclusion that we now have Zanulabour Zimbabwe economics and then do not join the thinking up when it comes to their own personal finances.

I do not for the record think we will enter Zimbabwe land but as you know I believe that all this will be inflationary (high).

Yesterday I drew a list of things that were going up...........today you can now add wholesale gas prices and electricity to the list of other commodities................could somebody please direct me to something that is going down in price? Deflation my ****........

High inflation means inevitable high interest rates. remember, banking assets are money...losing it all through inflation is not in their interest. you can guess where the protection is going...as before...to the banks.

as for energy stuff, they go up every winter.

this bust is perfectly normal, apart from the mind numbing numbers.

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High inflation means inevitable high interest rates. remember, banking assets are money...losing it all through inflation is not in their interest. you can guess where the protection is going...as before...to the banks.

as for energy stuff, they go up every winter.

this bust is perfectly normal, apart from the mind numbing numbers.

Energy I am looking at the the forward contracts over the next 2 years and not STOD electricity prices, so seasonal differances taken out, you seem to be in denial.

High inflation will mean high interest rates, take the money now it's cheap as it will ever be and fix the interest rate. As for banking and you saying it is not in their interest think again, the banks also need the debt to be paid back seeing as the banks were/are technically insolvent then one can assume that their overiding interest is to have the debt destroyed one way or another.

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Energy I am looking at the the forward contracts over the next 2 years and not STOD electricity prices, so seasonal differances taken out, you seem to be in denial.

High inflation will mean high interest rates, take the money now it's cheap as it will ever be and fix the interest rate. As for banking and you saying it is not in their interest think again, the banks also need the debt to be paid back seeing as the banks were/are technically insolvent then one can assume that their overiding interest is to have the debt destroyed one way or another.

Its not debt banks have a problem with.....its falling "asset" values. they are using debt to shore it all up. Inflation reduces the asset values more than the basic debt as much leverage is involved.

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Its not debt banks have a problem with.....its falling "asset" values. they are using debt to shore it all up. Inflation reduces the asset values more than the basic debt as much leverage is involved.

Sorry you have disconnected the issues it is debt AND falling asset values.

What assets are falling in value TODAY?

BTW update on leccy prices-----------------you guessed it still rising.

Could somebody please point me in the direction of deflation..........please anybody........hello!!! you know where something is going DOWN in price............yep as I keep saying 'thought not'.

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Sorry you have disconnected the issues it is debt AND falling asset values.

What assets are falling in value TODAY?

BTW update on leccy prices-----------------you guessed it still rising.

Could somebody please point me in the direction of deflation..........please anybody........hello!!! you know where something is going DOWN in price............yep as I keep saying 'thought not'.

we will see monetary inflation hiding real-terms asset deflation - but which assets, and how much...

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Sorry you have disconnected the issues it is debt AND falling asset values.

What assets are falling in value TODAY?

BTW update on leccy prices-----------------you guessed it still rising.

Could somebody please point me in the direction of deflation..........please anybody........hello!!! you know where something is going DOWN in price............yep as I keep saying 'thought not'.

can we count asda rollbacks in this?!

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Gordon is all smiles he is counting the tax.

Cost to sell first house at I assume 600K = 1.5% ea fees 9000 and vat at 1,575 total 10,575.

Removals 2K plus Vat 350 total 2,350.

Stamp duty on new house 600,000 at 4% = 24,000

Full structural pluse legal fees 1.5K plus vat = 262.5 = 1762.5

Total cost approx = 38,687.50 GBP of which 26,187.50 is TAX! TAX! TAX!

I would have stayed rented in your situation and had a few nice holidays you have just paid 26,000 in TAX to McDoomed and you had to pay the same price for the house you bought now as it was at the peak.

Hm, do you have any brains?

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That is the one thing nobody ever has an answer for. You pay your debts with your wages - not the price of tomatoes.

Even if wages were increasing they would have to be faster than the rate you paid on your debt. If not - then you wold also be losing out.

You need a very specific situation for your debt to be paid off by inflation. Your wages ahve to be movign up faster than the debt. If that doesn't happen ? Then large debt, in this environment, would be painful to say the least.

The entire 'debt paid off by inflation' argument has one serious hole in it. One about the size of hole in the Titanic IMO.

People who make this argument are basing their thoughts on the 1970s when pay rises were inflation plus a bit; difference is that then there was pretty much full employment and now there are 5m unemployed

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People who make this argument are basing their thoughts on the 1970s when pay rises were inflation plus a bit; difference is that then there was pretty much full employment and now there are 5m unemployed

Wrong so so wrong............unemployment rose during the 1970's but so did wage inflation, go figure.

http://www.economicshelp.org/2009/08/how-b...0s-economy.html

Rather than wish something to be true go and make sure it is true.

If you had said 'there are many parallels with 70's Britain and now but the one big differance is the power of the unions in todays Britain', then you would have some argument, I will help you with your argument even though it's premise is still incorrect.

In anycase with the adoption on in effect keynesian economics we know the result..............Indeed unemployment was kept artificially low by the then government keeping people in uproductive jobs.........hold on......public sector in the noughties?

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Wrong so so wrong............unemployment rose during the 1970's but so did wage inflation, go figure.

http://www.economicshelp.org/2009/08/how-b...0s-economy.html

Rather than wish something to be true go and make sure it is true.

If you had said 'there are many parallels with 70's Britain and now but the one big differance is the power of the unions in todays Britain', then you would have some argument, I will help you with your argument even though it's premise is still incorrect.

In anycase with the adoption on in effect keynesian economics we know the result..............Indeed unemployment was kept artificially low by the then government keeping people in uproductive jobs.........hold on......public sector in the noughties?

yep, the phase passed, as it will this time.

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Prices may fall, prices will inevitably rise again but I've got to the point where it no longer matters, where worrying about this stuff is secondary to what we should all be doing, living our lives. And that for me is key. I don't really care if I lose a few quid at least I have a little place to call home, close to a decent school and a nice big park :)

This sounds like a sensibly thought out move, but you're risking £240k - I guarantee you will care if you lose it.

We always follow California. Theyre 55-60% down, probable another 15% or so to go. AND THEY HAVE QE TOO.

Any evidence to back that?

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