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Savers Raid Their Savings

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The soaring price of everyday goods from petrol to household bills has forced more Britons to dip into their life savings.

According to a poll by moneysupermarket.com, 56% of savers said they have been making unplanned raids of their nest eggs to make ends meet.

A further 26% have started to contemplate similar action as prices rise.

And a separate study by investment firm Schroders showed almost a third of Britons have tapped into their stored cash over the past year withdrawing an average of £4,600 each.

It comes as a blow to ministers who said they are keen to foster a 'thriving savings culture' in Britain.

However, savers have not been helped by a toxic mixture of a record low 0.5% Bank of England base rate and crushing increases in the price of ordinary goods.

UK inflation is currently 4.8% (RPI) when housing costs are taken into account. Higher food bills are the biggest reason behind the rise, with meat, fruit and vegetables becoming more expensive over the last year.

Read more: http://www.thisismoney.co.uk/savings-and-banking/article.html?in_article_id=512695&in_page_id=7&ito=1565#ixzz0xW3CgTEQ

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Makes you wonder where the capital for fractional reserve lending is going to come from... Capitalism requires capital, last I checked.

Or do the governments expect that from here on in, Central banks will provide unlimited cheap credit on demand for the commercial banks to leverage into the market at much higher rates for a fat profit? What could possibly go wrong with a genius plan like that :unsure:

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Makes you wonder where the capital for fractional reserve lending is going to come from... Capitalism requires capital, last I checked.

Or do the governments expect that from here on in, Central banks will provide unlimited cheap credit on demand for the commercial banks to leverage into the market at much higher rates for a fat profit? What could possibly go wrong with a genius plan like that :unsure:

Sounds good to me - I learned in 2008 that Moral Hazard only exists as a theory if you don't give a monkeys about the value of your money

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It comes as a blow to ministers who said they are keen to foster a 'thriving savings culture' in Britain.

Yeah riiiiiiight...

These jokers couldn't foster a foster ready chicken with and electrified fostering machine.

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It will only get worse IMHO. Re: petrol: nobody is forced to drive at 80-90mph on motorways/dual carriageways. Your fuel consumption increases rapidly at those speeds. Most people drive on motorways like their **** is on fire!

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  • 245 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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