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How Much Truth In This?

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http://www.tuc.org.uk/economy/tuc-17574-f0.cfm

Above inflation wage increases could set off a damaging wage spiral. Wages are not driving inflation at the moment. The current increase is caused by the end of the VAT cuts and the recovery of new car sale and fuel prices. It's normal for wages to increase above inflation. Since 1960, wages have increased 183 per cent more than prices and this extra spending power has helped to fuel economic growth. If earnings had only increased in line with prices then the average wage would not be £480 as it is now, but just £186 per week - less than the current minimum wage.

What are your past twenty five year wage settlement experiences?

Edited by Panda

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1980 to 2010 Wages to Gold?

To create an index take gold in 1980.............$850 an ounce,around 3-4 weeks wages then................Gold now around 6 days wages,and people keep trying to tell other people that gold is a good hedge against inflation.

The index...........well gold at 850 in 1980 ,the DOW at 700,call it even shall we.Gold at 1300,DOW at 11000,which has had the better rise.Income,well nowt all from gold,shall we say 2% PA from the DOW.

Tomorrow all the experts in the world and all the articles in the world cannot predict the future,you have to think for yourself.What shall we do?

300k into a property,tax rebates,income expected, capital gain over the decades.

300K into shares or an index fund,tax rebates,income,capital gain over the decades.

300k into gold,no tax rebates,no income,capital gain over the decades?

http://buying-gold.goldprice.org/2008/01/what-happened-to-gold-price-in-1980.html

.Key Dates in Gold History

Here are some key dates in gold's trading history covering the period from the early 1970s through to January 2008 including that period when gold rose, fell and, like the phoenix, has risen again.

In August 1971, took the dollar off the gold standard. With some minor variations this had been in place since the Bretton Woods Agreement of 1944 and fixed the conversion rate for one Troy ounce of gold at $35.

In August 1972, United States devalued dollar to $38 per ounce of gold.

In March 1973, Most of the major countries adopted a floating exchange rate system.

Then in May 1973, the United States devalued dollar again, to $42.22 per ounce.

January 1980. Gold hits record high at $850 per ounce. High inflation because of strong oil prices, Soviet intervention in Afghanistan and the impact of the Iranian revolution, which prompted investors to move into the metal.

In August 1999, gold fell to an all-time low at $251.70 on concerns about central banks reducing gold bullion reserves while, at the same time mining companies were selling gold in forward markets to protect against falling prices.

In October 1999, gold reached a two-year high at $338 after an agreement by 15 European central banks to limit the gold sales.

During February 2003, gold reached 4-1/2-year high on safe-haven buying in the run-up to conflict with Iraq.

Then in December 2003 to January 2004, gold broke above $400, reaching levels last traded in 1988. Investors started to increasingly buy gold as risk insurance for portfolios.

In November 2005, the spot gold rises above $500 for the first time since December 1987, when the spot hit $502.97.

April 11, 2006, and gold prices then surpass the next big level of 600 US dollars an ounce, the highest since December 1980, with funds and investors pouring money into commodities on a weak dollar, firm oil prices and geopolitical worries.

May 12, 2006, saw gold prices peak at 730 US dollars an ounce This was the highest level since January 1980, with funds and investors pouring money into commodities on a weak dollar, firm oil prices and political tensions over Iran's nuclear ambitions.

June 14, 2006 gold falls 26 percent to $543 from its 26-year peak after investors and speculators went on a flurry of profit taking.

Nov 7, 2007, spot gold peaks at a 28-year high of $845.40 an ounce.

Jan 2, 2008, gold breaks above $850 for the first time since 1980.

Jan 8, 2008, gold hits record $875.80. (Sources: GFMS, World Gold Council, Commodity Research Bureau and Reuters database).

Jan 12, 2008, Now gold has breached 900 dollars an ounce and looks set to reach the magical 1000 US dollars per ounce.

Edited by Panda

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How much truth?

Not much, in my view. The concepts are, more or less, solid-ish; they just are not very applicable to our current situation, which, to my eyes, is a meltdown of both fiscal and monetarist policy in Britain, Europe and globally, which has led to a kind of end-of-days mess where everyone is, or will end up, punching everyone else in the face.

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I can nearly do that timescale.

From my first job in 1979 to my last job in 2003 my wage increased 890%

Same job, no promotions, same role just wage settlements for the period crrying out the same tasks, relative to hours per annum, no bonus, no overtime etc....

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What you earn from your job is largely irrelevant. Unless you are earning several hundred thousand pounds a year you will need to find a way to beat the herd and make your fortune.

Unfortunately at the moment there are few opportunities for low earners (i.e. anybody under 100 grand a year) to get in on a cheap and unpopular investent like property in 1995.

Just keep your eyes open for anything becoming cheap and so unpopular nobody wants it. Then buy lots of it and just sit and wait for 30 years. That is how to become rich.

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Since 1960, wages have increased 183 per cent more than prices and this extra spending power has helped to fuel economic growth.

You're falling for the classic trap.

Many, even on HPC, DIVE into this trap with eagerness.

You're looking at averages wages not mean wages.

Average wage has been thrown out by big increases for the very highest and very lowest page.

Put simply, if the have 5 people, and 2 earn £5k a year and 2 earn £10k a year and one earns £460k a year, the average wage is £100k.

This doesn't tell us everyone earns £100k, it tell us the gap between rich and poor has got out of control.

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What you earn from your job is largely irrelevant. Unless you are earning several hundred thousand pounds a year you will need to find a way to beat the herd and make your fortune.

Unfortunately at the moment there are few opportunities for low earners (i.e. anybody under 100 grand a year) to get in on a cheap and unpopular investent like property in 1995.

Just keep your eyes open for anything becoming cheap and so unpopular nobody wants it. Then buy lots of it and just sit and wait for 30 years. That is how to become rich.

Good point - yes minor differences in wages don't mean a hell of a lot. Unless you piling up cash in the bank, with the ability to buy shares, property.

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You're falling for the classic trap.

Many, even on HPC, DIVE into this trap with eagerness.

You're looking at averages wages not mean wages.

Average wage has been thrown out by big increases for the very highest and very lowest page.

Put simply, if the have 5 people, and 2 earn £5k a year and 2 earn £10k a year and one earns £460k a year, the average wage is £100k.

This doesn't tell us everyone earns £100k, it tell us the gap between rich and poor has got out of control.

Ruffles nails it, but I will go one further.

It is fundamentally about purchasing power within your environmental context -- ie. real wages.

By that measure, I am severely less wealthy than my grandmother at age 15 in 1935, who could earn enough in a week packing soap to pay the rent on a stone-built three bed cottage for a month.

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You're falling for the classic trap.

Many, even on HPC, DIVE into this trap with eagerness.

You're looking at averages wages not mean wages.

Average wage has been thrown out by big increases for the very highest and very lowest page.

Put simply, if the have 5 people, and 2 earn £5k a year and 2 earn £10k a year and one earns £460k a year, the average wage is £100k.

This doesn't tell us everyone earns £100k, it tell us the gap between rich and poor has got out of control.

No i am not, i am not looking at anything, i asked a question.....................

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You're falling for the classic trap.

Many, even on HPC, DIVE into this trap with eagerness.

You're looking at averages wages not mean wages.

I think you meant average Vs median, not mean

(takes off pedant hat!)

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  • 259 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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