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Inflation Expected To Exceed 3%


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UK inflation jumps to 3.5%

"...

Bank governor Mervyn King

Official figures due out later are expected to show that the UK inflation rate rose above 3% in January.

Bank of England governor Mervyn King has already warned this is likely, and if so, he will have to write a letter of explanation to the chancellor.

Driven by VAT returning to 17.5% on 1 January, and higher petrol prices, some economists predict Consumer Price Index inflation may have hit 3.5% last month.

This would be the UK's fastest annual pace of inflation for 14 months.

..."

*cough* raise interest rates *cough*

Edit: updated

Edited by Chester
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"...

No rates increase

As the Bank continues to predict that inflation will fall back again of its own accord as 2010 continues, most economists expect it to hold off from raising interest rates to try to bring it back down sooner.

UK interest rates have been at the low level of 0.5% for 11 consecutive months, as the Bank seeks to aid the economic recovery.

..."

"...

Former monetary policy committee member Professor David Blanchflower told the BBC that a spell of higher inflation would benefit the UK economy, suggesting that 4% would be a "pretty good starting point".

"You would actually end up inflating some of the debt away, but also if we get into a position where house prices were to fall further we are going to have a large number of people in negative equity, and if you have a few years of inflation that actually will deal with that problem."

Higher inflation would help to keep interest rates low, he added.

..."

FUC KING WHAT???!!!!!!!

Blanchflower. :angry: :angry: :angry:

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Since there is no possible way we can pay down the debt we have.. we have to inflate it away. A gradual default, I was suggesting 5-10% inflation a year for the forseeable future.

People here are also complaining about overly generous pension promises. Well to get rid of those you run inflation at like 6% and claim it is 2% inflation for indexing purposes. Again its a gradual readjustment to realistic levels.

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FUC KING WHAT???!!!!!!!

Blanchflower. :angry: :angry: :angry:

This is the propaganda they trotted out on the BBC news this morning. They desperately want to avoid deflation and they are trying to scare people out of cash. Time will tell if they win the battle.

Had to laugh the "Bussiness reporter" on the BBC this morning explained the rising cost of things will help erode peoples mortgage debt so inflation was a good thing. They then went on to say rising wages would be a bad thing.

It is amazing but I suspect most people were reassured that the rising cost of things they buy will some how magically reduce their mortgage burden even though they can not expect rising wages. :lol::lol::lol:

Edited by Confounded
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Since there is no possible way we can pay down the debt we have.. we have to inflate it away. A gradual default, I was suggesting 5-10% inflation a year for the forseeable future.

People here are also complaining about overly generous pension promises. Well to get rid of those you run inflation at like 6% and claim it is 2% inflation for indexing purposes. Again its a gradual readjustment to realistic levels.

Absolutely agree but doing this is not as easy as many would have you believe. The BOE do not set the interest rates in the same way the FED does not set the interest rates, the markets would give the policy you describe the big thumbs down, pushing interest rates up to levels the majority cannot afford.

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This is the propaganda they trotted out on the BBC news this morning. They desperately want to avoid inflation and they are trying to scare people out of cash. Time will tell if they win the battle.

Had to laugh the "Bussiness reporter" on the BBC this morning explained the rising cost of things will help erode peoples mortgage debt so inflation was a good thing. They then went on to say rising wages would be a bad thing.

It is amazing but I suspect most people were reassured that the rising cost of things they buy will some how magically reduce their mortgage burden even though they can not expect rising wages. :lol::lol::lol:

This shows how brainwashed people are. No challenging on this amount is stupidity at all.

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Guest DissipatedYouthIsValuable

Please somebody explain how rising inflation helps to erode (private) debt WITHOUT rising wages. huh.gif

Don't ask questions, boy.

We're all globalist peasants now.

Keep the banksters gorging and count yourself lucky you can afford to feed yourself.

After all, it's only in the last hundred years or so that workers rights have been considered important, a temporary blip of history.

Jolly good, carry on.

Edited by DissipatedYouthIsValuable
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Please somebody explain how rising inflation helps to erode (private) debt WITHOUT rising wages. huh.gif

You have hit the nail on the head, but the media and public in general seem too stupid to realise. They must all have been taught maths they way it was shown on channel 4 last night.

Inflation without wage rises does not erode debt, and actually makes it even harder to pay down debt, as the essential things like food and fuel take up even more income leaving even less to pay for mortgages and other debts. How thick are the powers that be not to realise this?

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3.5% it is

Interest rates won't rise. They will hide behind the "it will come down later in the year" mantra. Stealth inflation. Do nothing when the rate is too high, but everything if it starts to fall.

Then once it starts to come off the highs they can use it as an excuse to print even more money 'to fight off the danger of a deflationary spiral'.

You've gotta love the way when it briefly went below the 2% target it was "all hands on deck" to stop the presumed deflationary holocaust yet now that a short time later it's soaring away above it, a total laissez-faire approach.

How much longer are people going to swallow this rubbish? Even the thickest chav has got to realise soon that their beer and fags are going up yet they aren't getting any more income.

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Since there is no possible way we can pay down the debt we have.. we have to inflate it away.

I think you need to re-think this one. Monetizing a lot of government debt is the only way I see for this to happen - wages certainly won't be rising without it.

Edit: Oh - hold on !

Edited by Alan B'Stard MP
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Guest DissipatedYouthIsValuable

You have hit the nail on the head, but the media and public in general seem too stupid to realise. They must all have been taught maths they way it was shown on channel 4 last night.

Inflation without wage rises does not erode debt, and actually makes it even harder to pay down debt, as the essential things like food and fuel take up even more income leaving even less to pay for mortgages and other debts. How thick are the powers that be not to realise this?

They're not thick about it, they're just hoping everyone else is.

You can't change the terrible outcome of this economic event without changing the monetary system and global agreement.

And you can't change the monetary system while the current powers behind it are still breathing.

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Did we not have a big jump in inflation last month?

It's a mess isn't it?

To all those people who never saw it coming <expletive on>#### you!</expletive off>.

This election can't come soon enough, the phoney war needs to be curtailed and for us to face the reality of the situation.

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Driven by VAT returning to 17.5% on 1 January, and higher petrol prices, some economists predict Consumer Price Index inflation may have hit 3.5% last month.

Erm, doesn't CPI exclude VAT? (A definitive reference to decide this one way or the other would be good... I don't have one - but I'm aware that there are two stories.)

EDIT: Erm - perhaps I'm wrong and VAT is included - The ONS seems to think it is... Can't find my reference claiming the opposite...

Edited by A.steve
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Since there is no possible way we can pay down the debt we have.. we have to inflate it away. A gradual default, I was suggesting 5-10% inflation a year for the forseeable future.

People here are also complaining about overly generous pension promises. Well to get rid of those you run inflation at like 6% and claim it is 2% inflation for indexing purposes. Again its a gradual readjustment to realistic levels.

I do worry sometimes.

If you have 5-10% inflation, it will be a disaster because we are a NET IMPORTER of essential goods, especially FOOD and ENERGY.

Imagine, if you can, you gas/electric bill taking up 40% of your monthly wage.

And as for inflating away pension liabilities by fiddling the RPI figures... ain't gonna happen. I don't care what you put on paper, you HAVE to give old people enough money to live on comfortably or they will simply vote you out and vote in someone who will protect their interests. They will soon make up the largest portion of the electorate after all... they aren't going to let you leave them starving and freezing in their homes.

People need to start to accept that no magic fairy godmother is going to come and save you this time. There are no more assets to sell. The north sea oil is gone, the council houses are sold, the utilities pawned off to the lowest bidder. The boomers sold it all. All that is left is debts they ran up and SOMEONE has to pay the piper.

A war is coming, not between countries, but between a generation that had it all and their children who have to pay for it all.

You don't get to pick a side, your date of birth did that for you.

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What on earth is he on about?

I don't agree with his logic but I think that I know what he means. A bit of inflation means that we have averted a deflationary crash.

In a deflationary crash, it is possible for market determined interest rates to actually go up if it is severe enough that the market demands high risk premia to hold bonds as the risk of default has risen.

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I do worry sometimes.

A war is coming, not between countries, but between a generation that had it all and their children who have to pay for it all.

You don't get to pick a side, your date of birth did that for you.

Seriously, no generation will get off from this scott free. You may get fooked differently, but fooked over none the less.

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  • 442 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%



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