Inflation Rises To 3.2%

[Lord D'arcy Pew]

10 Print more money

20 Goto 10

Or copy the idea of Douglas Adams from Hitch hikers.

Use leaves as money, so for one ships biscuit a whole forest worth of leaves is required.

We are all passengers on the "B" Ark.

[Kazuya]

10 Print more money

20 Goto 10

BASIC!

[billybong]

So for decades and decades the UK struggled with inflation and envied Germany's consistent low inflation. The government whinged and whinged and whinged on about it until the cows came home and what did they blame - everything they could lay their hands on. Except the government that is - and then they used it as an excuse for any barmy scheme and policy you care to mention. Inflation was the great enemy and if you had a penny for every time they mentioned Weimar and wheelbarrows and burning currency to light a fire.

Then as soon as inflation is actually almost as good as dead and buried lo and behold they want it back - and out of control again. Madness.

[Cicero]

The decimal point is in the wrong place.

32% actually.

Edited November 16, 2010 by Cicero

[General Congreve]

10 Print more money

20 Goto 10

You are in a dark room in some ruins, there is a door to the North and a door to the South.

Go North.

You're path is blocked by a ferocious looking monster.

Go South. Go South

You're path is blocked by a lake of fire

Go North.

The ruins are crumbling around you

Inventory

Paper money

Wear paper money

You wear the paper money. It offers no protection. The ruins fall and crush you. You are Dead. Game over.

['Bart']

Pretty stupid bank to pay 4% on a cash deposit at the mo., however large.

There were some on here who thought early on in the year that as IRs went up, better deals were soon to be had as banks competed for saver's cash. IRs have yet to rise.

I'm getting 3.9% on my ISA, equivalent to 4.9% gross, and even that isn't enough to counter inflation IMO.

[pyewackitt]

http://www.independent.co.uk/news/uk/home-news/uk-inflation-rises-to-32-percent-in-october-2135327.html

I can't help but think that Merv has been hoping for more than 3.2%..

Eh ? Computer Games have that much of an impact ?!

If the US gets its way and China unpegs the Yuan from the USD then we'll look back on 3.2% as the good old days of low inflation....

[pyewackitt]

repeat post

Edited November 16, 2010 by pyewackitt

[ken_ichikawa]

If the US gets its way and China unpegs the Yuan from the USD then we'll look back on 3.2% as the good old days of low inflation....

Why would they do that though? They can utterly gang the USA right now, The USA can only respond with money printing. China responds by spending more of its US$ with the Russians Iranians Africans and central Asians.

[ccc]

In case anyone is interested.

Just checked my NS and I based on todays stats. One has got ~6.5% over the last year and the other ~5.5%. Both net and as a higher rate taxpayer that is pretty good.

Then again these both only got ~1% last year. Tends to happen with these certs. Although I have a pile coming up in a few months that are likely to have good gains 2 years in a row. First time that has happened in over 3 years of holding them. I think this may be a sign inflation is properly taking a hold ?

Not worked out the averages for them all - however I reckon it is about 3-4% net. Not great but not bad. I think that pretty much sums up these things. Houses I am potentially looking at are falling at maybe 5% or so a year. Long slow slide IMO. Combine that with 3-4% net interest and thats a pretty decent gain year on year. I will happily take that for another 2 years. A real 30-50% drop is not that far away.

Anyway you cant get them anymore so who cares.

[pyewackitt]

Why would they do that though? They can utterly gang the USA right now, The USA can only respond with money printing. China responds by spending more of its US$ with the Russians Iranians Africans and central Asians.

Because it would allow China to purchase a hell of lot more US denominated assets than they are already as well as US (and other) businesses

[Nickolarge]

So for decades and decades the UK struggled with inflation and envied Germany's consistent low inflation. The government whinged and whinged and whinged on about it until the cows came home and what did they blame - everything they could lay their hands on. Except the government that is - and then they used it as an excuse for any barmy scheme and policy you care to mention. Inflation was the great enemy and if you had a penny for every time they mentioned Weimar and wheelbarrows and burning currency to light a fire.

Then as soon as inflation is actually almost as good as dead and buried lo and behold they want it back - and out of control again. Madness.

The thing that makes me laugh is that the MPC is meant to be doing something to control inflation.

The usual method is to take some money out of the economy. Once upon a time this could be done with taxation but a certain party made their main election winning strategy a claim that they were the party of low taxes. This largely bogus claim took hold and, in electoral terms, it worked. It worked to the extent that no party with a real chance of power will admit to any desire to increase tax.

That only leaves interest rates and that is what the MPC controls (in theory). Trouble is that so many folk are so badly in debt that any increase in the base rate, even half a percent, would be a disaster in electoral terms.

I predict, therefore, that there will be no increase in the near future. If the downturn that I am expecting somehow does not materialise we will see inflation going up and bugger all will be done to stop it.

The coalition must be secretly hoping for a recession of some sort to prevent them having to face the inflation demon.

[yokel]

Has anyone heard a radio or tv reporter challenge the BoE MPC about why they are taking no action.

When is a "target" really just a wish?

If they are not allowed to target (verb) their target (noun) why doesn't someone lay them off for a couple of years and save some money?

I'd love to hear Merv saying "I've been unexpectedly sacked"

Y

[the_duke_of_hazzard]

In case anyone is interested.

Just checked my NS and I based on todays stats. One has got ~6.5% over the last year and the other ~5.5%. Both net and as a higher rate taxpayer that is pretty good.

Then again these both only got ~1% last year. Tends to happen with these certs. Although I have a pile coming up in a few months that are likely to have good gains 2 years in a row. First time that has happened in over 3 years of holding them. I think this may be a sign inflation is properly taking a hold ?

Not worked out the averages for them all - however I reckon it is about 3-4% net. Not great but not bad. I think that pretty much sums up these things. Houses I am potentially looking at are falling at maybe 5% or so a year. Long slow slide IMO. Combine that with 3-4% net interest and thats a pretty decent gain year on year. I will happily take that for another 2 years. A real 30-50% drop is not that far away.

Anyway you cant get them anymore so who cares.

At the time you got 1% we were really actually deflating, so your returns are even better (in real terms) in those circumstances. 3-4% over the past two years with capital protection is not to be sneezed at. It's just hardly an exciting investment.