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The Only Thing The Bankrupt Of England Will Target Is Wage Rises

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Discuss.....

I believe this has been their policy has been this all along, well that and creating fake growth through debt.

(Except for bankster's earnings becuae they don't count, just like house/land prices.)

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That's pointless because without wage inflation near to the real huge inflation then they can't inflate away the debt as tax receipts will not increase.

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You need to qualify that Only Me. The Bankrupt of England will not target bank salaries, aka bonuses but I can guarantee the great "unwashed" wages will be targeted like hell!

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You need to qualify that Only Me. The Bankrupt of England will not target bank salaries, aka bonuses but I can guarantee the great "unwashed" wages will be targeted like hell!

That's because they're the big, powerful wealth creators who deserve every penny and everything needs to be done to protect them, but everyone else is a worthless parasite and every effort needs to be made to make their job unnecessary so that no-one has to suffer the indignity of paying them.

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You need to qualify that Only Me. The Bankrupt of England will not target bank salaries, aka bonuses but I can guarantee the great "unwashed" wages will be targeted like hell!

true, only way manufacturing can compete is through wage restaint, low average wage inflation for a long while. ;)

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What we are witnessing is the end of the experiment in allowing the proletariat to gather enough to get by comfortably and consequently get uppity and above themselves. It pretty much started post WW-1, picked up new impetus after WW-2 and is now being reined back in. There has been a slight change in who the Lords and Masters will be going forwards, but that is pretty much it.

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Where debt is concerned we have two problems .

1. Govenment debt

2. Personnel debt.

If they inflate away govenment debt but peoples pay does not rise to inflate away personnel debt the personnel debt will drag the economy down as the burdens of that debt will become bigger for people as their wages do not keep up with inflation.

A big part of the problems we are in have been caused by lying about inflation and wages having been linked to those false figures . Which ever way they choose to go they must tell the truth however painfull that truth is , untill that happens we are never going to get out of this mess.

You cannot lie about numbers they will always catch you out in the end.

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What we are witnessing is the end of the experiment in allowing the proletariat to gather enough to get by comfortably and consequently get uppity and above themselves. It pretty much started post WW-1, picked up new impetus after WW-2 and is now being reined back in. There has been a slight change in who the Lords and Masters will be going forwards, but that is pretty much it.

Apparently we are all so well off, that we are forced (thru thousands of millions £££'s in 'X'tra Carbon Credit/green scam taxation) to pass it all over to Asian countries.

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That's because they're the big, powerful wealth creators who deserve every penny and everything needs to be done to protect them, but everyone else is a worthless parasite and every effort needs to be made to make their job unnecessary so that no-one has to suffer the indignity of paying them.

The only reason most of them are so big, powerful and wealthy is because they have made their money with large sums of cheap credit and paid low wages subsidised by the tax payer via top up benefits...also they can pay less tax in proportion of what a PAYE wealth creating employee pays.....big business needs its low paid compliant workers to survive.......they can also source them from all corners of the world. ;)

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Discuss.....

I believe this has been their policy has been this all along, well that and creating fake growth through debt.

(Except for bankster's earnings becuae they don't count, just like house/land prices.)

Yes, clearly MK is distinguishing external inflation sources, which he's ignoring, and domestic inflation sources, which he feels he must fight. Apart from one domestic inflation source - the government, through taxes etc - which he is also ignoring.

So a convo at the MPC goes like: petrol is down to world oil price - ignore it. Food prices are down to a poor Russian harvest - ignore, other inflation down to VAT rises - ignore. In fact just ignore everything, after a year it will have dropped out the back of the statistics anyway and the stopped clock will be telling the right time at last.

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The BoTfSiE have supposedly trashed sterling so we can have an export led recovery. If wages then inflate that increases costs which increases prices so makes our products less price competitive.

Vic_cyc_macro_small.png

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Discuss.....

I believe this has been their policy has been this all along, well that and creating fake growth through debt.

(Except for bankster's earnings becuae they don't count, just like house/land prices.)

Correct, and has always been correct, my long term belief has always been until we see wage inflation , real wage rises, and money supply hit real positive figures then you can forget a BoE base rate mirroring anything long term trend. The cost of money is valued against the cost of labour (effort), until we see this rising in cost (labour) then money will remain at a cost level mirroring the labour cost level.

I have alsways stated that your savings, spare cash should be measured against your wage, so if you earn £20k net per annum and you have £40k in the bank, then obviously you hold two years net income. If cost inflation is running at 4% per annum then your savings (spare salary) and you current cash (salary) are losing 4% per annum in purchasing power. It looks like the across the board wage increment for the past 12 months is around 2%, if you are lucky and have a job. This 2% is easily achievable net of tax on a savings account, you can get around 2.8% gross, so if you are a 20% tax payer like me, that is just over 2% per annum return on your spare cash in the bank with no risk.

If you house you intend to purchase is falling 5% per annum, then your return, is slightly better, considering you are paying rent?

You can hedge against cost inflation, yes, but not without risk. But for now, if and as always, the cost of money, and the cost of human labour are closely linked, and have always been closely linked. If we start to see 5% wage increments, then you watch the BoE remain vigilant, its just 50% of the working class are in the public sector, i just cannot see wage inflation anytime soon, so the BoE will remain vigilant.

For me long term pain, stagnant wages, falling house prices, rising essentials, so we get poorer, our creditiors get richer, we work longer for less,, a long slow asset cost deflationary spiral until either riots or war. But for me, watch house fall for the next ten years, watch wages just stagnate, watch you saving just depreciate against rising living costs. But house are and will keep falling just so slow you will not notice unless you go in with a cash offer to a distressed seller.....................

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true, only way manufacturing can compete is through wage restaint, low average wage inflation for a long while. ;)

Its funny how that never applies to investment banking! rolleyes.gif

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a) Austerity = Don't you dare ask for a pay rise.

b.) Immigration = Don't you dare ask for a pay rise.

c) Outsourcing= Don't you dare ask for a pay rise.

d) Terrorism = If you dare to complain and protest about any of the above you will be dealt with.

a+b+c+d= Lowering in standard of living for the middle class.

The lower class "benefit junkies" and the elite "bankers/ceo"s will be beneficiaries.

This is the new world order and it is coming into view with laser like precision.

NB: Pay Rise = Complain about inflation

Edited by Mr. Spin esq.

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What we are witnessing is the end of the experiment in allowing the proletariat to gather enough to get by comfortably and consequently get uppity and above themselves. It pretty much started post WW-1, picked up new impetus after WW-2 and is now being reined back in. There has been a slight change in who the Lords and Masters will be going forwards, but that is pretty much it.

Indeed. And following two world wars the population of world workers was low so workers had power. As the population boomed and globalisation led to the opening up of new large workforces around the world there became once again an oversupply of workers and consequently workers powers declined

Throughout history low levels of population has always led to increased wealth for workers and vice versa

following the black death the average joe 's wage went up enourmously and people were relatively well of until the bred like rabbits again

Edited by Tortoise

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a) Austerity = Don't you dare ask for a pay rise.

b.) Immigration = Don't you dare ask for a pay rise.

c) Outsourcing= Don't you dare ask for a pay rise.

d) Terrorism = If you dare to complain and protest about any of the above you will be dealt with.

a+b+c+d= Lowering in standard of living for the middle class.

The lower class "benefit junkies" and the elite "bankers/ceo"s will be beneficiaries.

This is the new world order and it is coming into view with laser like precision.

Its good to have another conscious human on here, welcome.

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I have alsways stated that your savings, spare cash should be measured against your wage, so if you earn £20k net per annum and you have £40k in the bank, then obviously you hold two years net income. If cost inflation is running at 4% per annum then your savings (spare salary) and you current cash (salary) are losing 4% per annum in purchasing power. It looks like the across the board wage increment for the past 12 months is around 2%, if you are lucky and have a job. This 2% is easily achievable net of tax on a savings account, you can get around 2.8% gross, so if you are a 20% tax payer like me, that is just over 2% per annum return on your spare cash in the bank with no risk.

For what purpose? So that if you have more than x years salary in savings you feel good?

With 4% inflation and lower wage rises/interest rates you aren't doing well.

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  • 312 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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