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Boe's Fault?

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Just heard the end of 6 o'clock news on R4

Big bit on housing market/economy, how there was a HP bubble but the Great Gordo sorted that thanks to a carefully controlled soft landing

Interesting bit was at end when the reporter's summing up was that the high st & economy is going down the tubes, and perhaps the Bank of England's medicine was a bit strong.

Can be read as the usual pre MPC meeting winges for rate cuts, or could it be a bit of Brownspin? putting the blame on BoE, in additon to "70's oil prices"

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The high street is going down the tubes because of the false inflation measure. CPI is a joke.

If you believe the ONS, national wage growth is around 4.5 percent. Now even if you are getting 4.5 percent pay rise the real inflation that surrounds us swallows up any increase in months - maybe even weeks.

People have run out of money.

Lob in a debt bubble fuelled by ridiculously low interest rates and the picture is complete.

The bull$hit inflation measure is stealing your money from you.

Oh, whilst I'm here, yet another bit of gloom from the economist (seem to get these articles daily...) Link

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The high street is going down the tubes because of the false inflation measure. CPI is a joke.

If you believe the ONS, national wage growth is around 4.5 percent. Now even if you are getting 4.5 percent pay rise the real inflation that surrounds us swallows up any increase in months - maybe even weeks.

People have run out of money.

Private sector incomes after tax have fallen in real terms for two years now, so that 4.5% figure doesn't mean much in the face of rising tax, national insurance and stealth taxes, the figure is also skewed by 7% settlements in the public sector.

Falling incomes, higher IR's, higher real inflation (not of the Chinese DVD player kind) can easily explain these problems, now we have higher petrol prices and the prospect of tax hikes in 2006. The plastic and MEW magic has run out, a slowdown is bad enough now we have the prospect of people having to start paying off yesterday's profligacy and a lot of people who struggle with IR fixes above 3.5%.

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  • 301 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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