Realistbear Posted January 18, 2011 Report Share Posted January 18, 2011 http://uk.finance.yahoo.com/news/Millions-savers-need-6pc-beat-tele-1157485272.html?x=0 Myra "Marge" Butterworth, 12:40, Tuesday 18 January 2011 Millions of savers need accounts paying at least 6 per cent interest to achieve a real rate of return on their investments after inflation rose again, figures show. The rising cost of living means higher rate taxpayers need a rate of 6.17 per cent to avoid losing money on their savings once inflation and tax is taken into account, while basic rate taxpayers need 4.625 per cent. The impoverishment of a generation, first through HPI debt and now through inflation generally. As people become poorer they will spend less and as they spend less jobs will be less and as jobs get less the economy grows less and it all comes crashing down. Quote Link to post Share on other sites
guitarman001 Posted January 18, 2011 Report Share Posted January 18, 2011 RB, I thought you were in the deflation camp? Quote Link to post Share on other sites
exiges Posted January 18, 2011 Report Share Posted January 18, 2011 I'm glad I've got some RPI + 1% tax free with NS&I, that works out to an equivalent rate of 9.8% for a 40% tax payer. Quote Link to post Share on other sites
guitarman001 Posted January 18, 2011 Report Share Posted January 18, 2011 I'm glad I've got some RPI + 1% tax free with NS&I, that works out to an equivalent rate of 9.8% for a 40% tax payer. I've got some, too... £11k bought June 2010 for 3 years. Calc shows now worth £11.25k (?). I'm a lower rate payer. Quote Link to post Share on other sites
Realistbear Posted January 18, 2011 Author Report Share Posted January 18, 2011 RB, I thought you were in the deflation camp? Like I said in the OP--as the nation gets poorer people will have less to spend and the less they spend the less businesses will make and the less jobs there will and the less the economy makes. When the consumers stop spending it all comes crashing down. Japan had severe inflation and eye-watering HPI almost as bad as ours before their day of reckoning and years and years of deflation. We are in that phase of blowing up before the implosion follows. Also, we are the only major Western nation to have serious inflation. The US are at 1.1% IIRC and the EZ are marginally above 2%. The inflation we have now is as a result of the global commodity bubble--huge and ongoing but it will all end in tears as the cycle has its way of corrrecting things naturally. Quote Link to post Share on other sites
Scott Sando Posted January 18, 2011 Report Share Posted January 18, 2011 http://uk.finance.yahoo.com/news/Millions-savers-need-6pc-beat-tele-1157485272.html?x=0 Myra "Marge" Butterworth, 12:40, Tuesday 18 January 2011 Millions of savers need accounts paying at least 6 per cent interest to achieve a real rate of return on their investments after inflation rose again, figures show. The rising cost of living means higher rate taxpayers need a rate of 6.17 per cent to avoid losing money on their savings once inflation and tax is taken into account, while basic rate taxpayers need 4.625 per cent. The impoverishment of a generation, first through HPI debt and now through inflation generally. As people become poorer they will spend less and as they spend less jobs will be less and as jobs get less the economy grows less and it all comes crashing down. They should have bought gold. Quote Link to post Share on other sites
Lagarde's Drift Posted January 18, 2011 Report Share Posted January 18, 2011 Er, inflation is 15-20%, so savings would need to be above that, minus tax to keep up. :angry: Quote Link to post Share on other sites
Bruce Banner Posted January 18, 2011 Report Share Posted January 18, 2011 Er, inflation is 15-20%, so savings would need to be above that, minus tax to keep up. :angry: How did you arrive at 15-20%? Quote Link to post Share on other sites
ccc Posted January 18, 2011 Report Share Posted January 18, 2011 If your savings are going to be used to buy a house in the UK ? Then they only have to stay ahead of about minus 5-10% to stay ahead of inflation. All relative. Quote Link to post Share on other sites
Lagarde's Drift Posted January 18, 2011 Report Share Posted January 18, 2011 How did you arrive at 15-20%? More or less the same way as the official figures are calculated. I made it up. Quote Link to post Share on other sites
Guest_FaFa!_* Posted January 18, 2011 Report Share Posted January 18, 2011 How did you arrive at 15-20%? You don't know the Beans n'Guns Fantasyland Index? Quote Link to post Share on other sites
888 Posted January 18, 2011 Report Share Posted January 18, 2011 They should have bought gold. So Pimco should transfer all their clients assets into Gold holding? Na. Quote Link to post Share on other sites
Snafu Posted January 18, 2011 Report Share Posted January 18, 2011 I'm so glad I haven't got any savings..or..errrr. Quote Link to post Share on other sites
General Congreve Posted January 18, 2011 Report Share Posted January 18, 2011 They should have bought gold. Yep. Quote Link to post Share on other sites
Realistbear Posted January 18, 2011 Author Report Share Posted January 18, 2011 Yep. Inflation is, funnily enough, gold's nemesis and has kept it 50% below its 1980 peak. Without inflation gold would be worth double what it was in 1980 but with inflation it is worth less than half its previous peak. Gold is not an inflation hedge any more than anything else is. If you want secure inflation protection you have to look to the world of art and the likes of Gibson Les Paul's. Quote Link to post Share on other sites
interestrateripoff Posted January 18, 2011 Report Share Posted January 18, 2011 Luckily all this inflation is down to "one off factors" which keep repeating YoY. But soon it will be all fixed... Quote Link to post Share on other sites
Lagarde's Drift Posted January 18, 2011 Report Share Posted January 18, 2011 Gold is not an inflation hedge any more than anything else is. If you want secure inflation protection you have to look to the world of art and the likes of Gibson Les Paul's. SHORT Les Paul Futures!! In all seriousness I think the art / antiques / cool cars / wine market is really only for those who live and breathe it. Anyone else is just gonna lose. Quote Link to post Share on other sites
punter Posted January 18, 2011 Report Share Posted January 18, 2011 The inflation we have now is as a result of the global commodity bubble--huge and ongoing but it will all end in tears as the cycle has its way of corrrecting things naturally. The inflation we have now is due to money printing by the Bankrupt of England, not the commodity prices which reflect true value in any currency and have for hundreds and thousands of years Quote Link to post Share on other sites
punter Posted January 18, 2011 Report Share Posted January 18, 2011 (edited) Inflation is, funnily enough, gold's nemesis and has kept it 50% below its 1980 peak. Without inflation gold would be worth double what it was in 1980 but with inflation it is worth less than half its previous peak. Gold is not an inflation hedge any more than anything else is. If you want secure inflation protection you have to look to the world of art and the likes of Gibson Les Paul's. That just means gold (and silver, oil or whatever) have more room to increase and they will. Art is risky as an investment, commodities aren't nearly as such because we KNOW they're going to increase in value - well those of us who don't think they're in a bubble- to reflect the destruction of the nation and the global fiat currencies Edited January 18, 2011 by punter Quote Link to post Share on other sites
Guest spp Posted January 18, 2011 Report Share Posted January 18, 2011 (edited) Inflation is, funnily enough, gold's nemesis and has kept it 50% below its 1980 peak. Without inflation gold would be worth double what it was in 1980 but with inflation it is worth less than half its previous peak. Gold is not an inflation hedge any more than anything else is. If you want secure inflation protection you have to look to the world of art and the likes of Gibson Les Paul's. Still clinging on to that 1 year RB??... Muppet! So Gold is obviously still undervalued. You still fail to admit you are wrong about all this Inflation. And don't give us that U.S baloney...See Shadow stats! edit: Print or collapse. Currencies have been destroyed since the bailouts 2 years ago (v G/S). Cash was king....when it was backed by Gold/Silver! You were warned by many. Edited January 18, 2011 by spp Quote Link to post Share on other sites
Kazuya Posted January 19, 2011 Report Share Posted January 19, 2011 Getting old now Quote Link to post Share on other sites
davidg Posted January 19, 2011 Report Share Posted January 19, 2011 > the EZ are marginally above 2%. with 1% interest rates, which Trichet says he will put up due to inflation worries. My Livret A (french savings account) has just gone up to 2% to match inflation (I'm getting 5% in another account tax free as the govt fixed the rate 10 years ago when interest rates were much higher). The Swiss only pay me 0.65% on CHF though. Quote Link to post Share on other sites
'Bart' Posted January 19, 2011 Report Share Posted January 19, 2011 Millions of savers need accounts paying at least 6 per cent interest to achieve a real rate of return on their investments Gold up over 30% in 2010, silver up over 80%. Hey RB, dont'cha wish your investments were hot like mine? http://www.youtube.com/watch?v=dLA4BW1b89w Quote Link to post Share on other sites
Frank Hovis Posted January 19, 2011 Report Share Posted January 19, 2011 SHORT Les Paul Futures!! In all seriousness I think the art / antiques / cool cars / wine market is really only for those who live and breathe it. Anyone else is just gonna lose. If you're into alternative investments and a bit of TV history: Paul Daniels auctions wig Quote Link to post Share on other sites
Realistbear Posted January 19, 2011 Author Report Share Posted January 19, 2011 That just means gold (and silver, oil or whatever) have more room to increase and they will. Art is risky as an investment, commodities aren't nearly as such because we KNOW they're going to increase in value - well those of us who don't think they're in a bubble- to reflect the destruction of the nation and the global fiat currencies Over the last 31 years fine art has risen thousands of percent whereas gold has halved in value IA. In 1980 you could buy a '57 or '59 Les Paul for around $3000. Peter Green's LP sold recently for $200,000. Everything is speculative and subject to wild swings as the pendulum swings from buy too sell. Everything has room to increase and equally everything has room to decrease. Houses, for example. Stay nimble and don't try to time the top is the best advice. Also, avoid emotional plays and get out when the herd are all buying---as Warren Buffett would put it. There is no such thing as a sure bet and commodities can only rise as much as people can afford to pay--the cause of all crashes is affordability. Quote Link to post Share on other sites
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