lal Posted November 16, 2010 Share Posted November 16, 2010 With rising unemployment wage increases in the real economy will be very weak over the next decade... if inflation does continue to go up (which the trend suggests and if quantitve easing continues) we are all quite literally getting poorer... this is a solution to the problem we are in unfortunately... Quote Link to comment Share on other sites More sharing options...
Pent Up Posted November 16, 2010 Share Posted November 16, 2010 My purchasing power is increasing all the time now house prices are falling. My savings are solely for house purchase so my 2.75% Santander ISA is looking very good Quote Link to comment Share on other sites More sharing options...
SomethingHasToGive Posted November 16, 2010 Share Posted November 16, 2010 So how many of us are getting above inflation wage increases? If you earned £30k in 2005 and earn £30k now you are about £4.5k a year worse off in purchasing power terms. Corporate profits are at record highs both nominally and as a percentage of gdp but wages are a falling percentage of gdp. http://economix.blogs.nytimes.com/2010/11/12/a-high-water-mark-for-profits/?src=busln Still at least those evil unions have been crushed so there is no-one to stand up for the workers...... I'm on the same real term wages as I weas in 2000. :angry: Although to to be fair I worked harder then... Quote Link to comment Share on other sites More sharing options...
Lepista Posted November 16, 2010 Share Posted November 16, 2010 The bank looks good to me. I'll probably get about 3% next year and prefer to lose a percent or two to general inflation (food, fuel etc), than lose tens of percent on a depreciating asset such as a house or risk it on the stock market. I spend a very small proportion of my overall worth on things that are currently effected by inflation so I'm not too bothered at the moment, if things change significantly I can move quickly, being in cash, liquidity is the key in these difficult times. Please don't go on about gold, you know my views on that and to go over it all again would be really tedious. I promise I won't mention it Bruce, but can you not see how your post is just "ramping" another style of investment / speculating / protection call it what you will? To say that you want to talk about one, and not give other people an opportunity to discuss their preferred investment / speculation / protection choice is a little disingenuous. Why is one sort of investment discussion allowed but not another? Why are gold threads 'banned' to the gold forum, but other investment topics aren't? Quote Link to comment Share on other sites More sharing options...
exiges Posted November 16, 2010 Author Share Posted November 16, 2010 Why is one sort of investment discussion allowed but not another? I don't think he's saying you can't discuss it. I think he's saying he's given his reasons enough times, and doesn't want to be drawn into it again. Quote Link to comment Share on other sites More sharing options...
hedgefunded Posted November 16, 2010 Share Posted November 16, 2010 I'm on the same real term wages as I weas in 2000. :angry: Although to to be fair I worked harder then... The weapon of choice for employed people. Do as little as you possibly can. Do nothing whatsoever for free. Quote Link to comment Share on other sites More sharing options...
headrow Posted November 16, 2010 Share Posted November 16, 2010 , liquidity is the key in these difficult times. What are these difficult times? Because tbh i don't anybody who is actually having a difficult time. Austerity is something that is spoken about but never seen. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 16, 2010 Share Posted November 16, 2010 I promise I won't mention it Bruce, but can you not see how your post is just "ramping" another style of investment / speculating / protection call it what you will? I'm not ramping anything, just saying that I'm happy keeping my money in the bank, for now. Quote Link to comment Share on other sites More sharing options...
Guest_FaFa!_* Posted November 16, 2010 Share Posted November 16, 2010 If anyone is interested - here are the letters http://www.bankofengland.co.uk/monetarypolicy/pdf/cpiletter101116.pdf http://www.hm-treasury.gov.uk/d/chx_letter_161110.pdf Quote Link to comment Share on other sites More sharing options...
killerbee Posted November 16, 2010 Share Posted November 16, 2010 I promise I won't mention it Bruce, but can you not see how your post is just "ramping" another style of investment / speculating / protection call it what you will? To say that you want to talk about one, and not give other people an opportunity to discuss their preferred investment / speculation / protection choice is a little disingenuous. Why is one sort of investment discussion allowed but not another? Why are gold threads 'banned' to the gold forum, but other investment topics aren't? You mentioned it! I promise I won't mention my 3 year return! Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 16, 2010 Share Posted November 16, 2010 The bank looks good to me. I'll probably get about 3% next year and prefer to lose a percent or two to general inflation (food, fuel etc), than lose tens of percent on a depreciating asset such as a house or risk it on the stock market. I spend a very small proportion of my overall worth on things that are currently effected by inflation so I'm not too bothered at the moment, if things change significantly I can move quickly, being in cash, liquidity is the key in these difficult times. Please don't go on about gold, you know my views on that and to go over it all again would be really tedious. £100 sat in the bank for the last year is now worth less than £95. That is £50 per £1000, £500 per £10,000. With a modest house fund of £50k your sterling is down over £2,500 in a year. A small inflation percentage still makes for a descent loss when you sit and work it out. Cash may be considered the least risk but for that 'safety' you must accept a guaranteed loss. Personally, I would rather spread my money around and take some small and calculated risks. The theft by inflation is only set to rise. I didn't mention the 'g' word but am sure that others will, not least for all of the obvious reasons, but I am all ears to any reasonable course of action. I would be more than interested to hear everyone else's plans for beating inflation as it is becoming more difficult to do. I guess it is obvious now why the NS&I option has gone and not returned. Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 16, 2010 Share Posted November 16, 2010 I promise I won't mention it Bruce, but can you not see how your post is just "ramping" another style of investment / speculating / protection call it what you will? To say that you want to talk about one, and not give other people an opportunity to discuss their preferred investment / speculation / protection choice is a little disingenuous. Why is one sort of investment discussion allowed but not another? Why are gold threads 'banned' to the gold forum, but other investment topics aren't? hahahahhaha Bruce is a ramper! A CASH RAMPER! Sterling and Euro's no less Quote Link to comment Share on other sites More sharing options...
campervanman Posted November 16, 2010 Share Posted November 16, 2010 I see it's unexpected. Again. Would that be the unexpected rise in fuel duty or the unexpected rise in the cost of imports (Posen effect)? FKWTS. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 16, 2010 Share Posted November 16, 2010 £100 sat in the bank for the last year is now worth less than £95. That is £50 per £1000, £500 per £10,000. With a modest house fund of £50k your sterling is down over £2,500 in a year. A small inflation percentage still makes for a descent loss when you sit and work it out. Cash may be considered the least risk but for that 'safety' you must accept a guaranteed loss. Or £5,000 per £100,000, £50,000 per £1,000,000 . And you conveniently forgot the interest the banks pays, currently about 4% in my case. Quote Link to comment Share on other sites More sharing options...
xux42 Posted November 16, 2010 Share Posted November 16, 2010 Please don't go on about gold, you know my views on that and to go over it all again would be really tedious. Assume this is not aimed at gold investors who use it as a foundation layer like me - my contempt for gold bugs is well documented. Re working harder - yes, although earning far less this summer, I have also spent a lot of time learning .net, managing investments, looking for a better paid job, cleaning and maintaining the cars, general house maintenance, housework, improving the garden inc. returfing, helping No.1 son prepare for Uni, All while 'working from home'. My current employer have got the hours they have paid for - about half the hours they think they have. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 16, 2010 Share Posted November 16, 2010 hahahahhaha Bruce is a ramper! A CASH RAMPER! Sterling and Euro's no less How can you ramp cash, cash is the default position, if you're not in debt. Quote Link to comment Share on other sites More sharing options...
xux42 Posted November 16, 2010 Share Posted November 16, 2010 Or £5,000 per £100,000, £50,000 per £1,000,000 . And you conveniently forgot the interest the banks pays, currently about 4% in my case. Pretty stupid bank to pay 4% on a cash deposit at the mo., however large. Quote Link to comment Share on other sites More sharing options...
ccc Posted November 16, 2010 Share Posted November 16, 2010 £100 sat in the bank for the last year is now worth less than £95. No it's not - ALL depends what you ultimately want that £100 for. And as most on this forum are planning on buying a house - then that £100 for many areas of the UK - is now worth about £105-110. Plus any net interest you may have got of course. Quote Link to comment Share on other sites More sharing options...
campervanman Posted November 16, 2010 Share Posted November 16, 2010 £100 sat in the bank for the last year is now worth less than £95. That is £50 per £1000, £500 per £10,000. That would be true if your savings pot was created to buy tins of beans or computer games. If however it is there to buy a house then having cash + interest gives some guarantee of preserving/increasing purchasing power in the current hpi environment. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 16, 2010 Share Posted November 16, 2010 Pretty stupid bank to pay 4% on a cash deposit at the mo., however large. NS&I are currently paying 3.95% (to existing customers), probably down to 3% next year though. Quote Link to comment Share on other sites More sharing options...
xux42 Posted November 16, 2010 Share Posted November 16, 2010 (edited) NS&I are currently paying 3.95% (to existing customers), probably down to 3% next year though. Its OK mate I'm not doubting you at all. Still think its stupid. Though not as stupid as offering RPI+1% last year Edited November 16, 2010 by xux42 Quote Link to comment Share on other sites More sharing options...
Sour Mash Posted November 16, 2010 Share Posted November 16, 2010 Yep. Which was obvious really. Retailers are starting price ahead for the VAT rise. I don't know why none of the forecasters took this into account? True - but I also expect that many retailers who have eaten price rises in their supply chain will use the VAT increase as a way to slap them on, come 2011. What with all the talk of recession it can be hard to justify putting your prices up and you are afraid the publicity will cost you market share. Here comes the perfect excuse to raise prices. It's a bit like a currency change in a way. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 16, 2010 Share Posted November 16, 2010 Its OK mate I'm not doubting you at all. Still think its stupid. Though not as stupid as offering RPI+1% last year I don't disagree, but I'm not complaining . Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 16, 2010 Share Posted November 16, 2010 And you conveniently forgot the interest the banks pays, currently about 4% in my case. Not at all. I was talking about cash sat in the bank. I was talking about the straight forward loss due to inflation. I can not account for everyone's savings interest rates. I actually believe that the loss is in excess of 5%. IF you are getting 4% then well done you. Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 16, 2010 Share Posted November 16, 2010 How can you ramp cash, cash is the default position, if you're not in debt. Don't get your knickers in a knot, I was kidding. Ramper. Quote Link to comment Share on other sites More sharing options...
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