easy2012 Posted June 8, 2011 Share Posted June 8, 2011 Whenever I get to catch up with mates, everyone I know is pulling in their spending either at work or home, even people who are unaffected by it becuase of the amounts they earn are spending less. Everyone is holding onto their money where possible and its only just started. Shopping habits are changing and people are not wasting money now. Still long queue on IPAD2 launch and Oxford street is as crowded as ever. John Lewis numbers are still good./ It is a 2 tier retail market...the mid/bottom market are suffering, The top tier is doing just fine. Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted June 8, 2011 Share Posted June 8, 2011 Still long queue on IPAD2 launch and Oxford street is as crowded as ever. John Lewis numbers are still good./ It is a 2 tier retail market...the mid/bottom market are suffering, The top tier is doing just fine. Yup as said when I cover for people in retail a lot of people pay in coins, I've not seen a bendy note from a customer in weeks. Quote Link to comment Share on other sites More sharing options...
awaytogo Posted June 8, 2011 Share Posted June 8, 2011 You've been banging on about deflation for years now and each and every time you've been wrong, not a little bit wrong but completely wrong. He was banging on about house price deflation for years and they said he was wrong, as incomes become static so do prices overhaul as you cannot spend what you ain't got. Simple Maths. Quote Link to comment Share on other sites More sharing options...
GinAndPlatonic Posted June 8, 2011 Share Posted June 8, 2011 I saw £2.18 for a small pack of caramel digestives in the Co-op, and 4 tins of chopped tomatoes for £2+. These were reduced also! Expensive! Go shop at Aldi. Tinned whole toms at 35pence. If people want to waste money shopping at Sainsburies then more power to them. Housing is way to expensive but food is one thing that is sold in a very competitive market.. Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted June 8, 2011 Share Posted June 8, 2011 Go shop at Aldi. Tinned whole toms at 35pence. If people want to waste money shopping at Sainsburies then more power to them. Housing is way to expensive but food is one thing that is sold in a very competitive market.. Except at Aldi those tinned tomatoes were around 24p last year. You can't dodge inflation by shopping around. Quote Link to comment Share on other sites More sharing options...
Injin Posted June 8, 2011 Share Posted June 8, 2011 He was banging on about house price deflation for years and they said he was wrong, as incomes become static so do prices overhaul as you cannot spend what you ain't got. Simple Maths. No one paid for their houses in the boom, they promised to pay later. You could walk into your local car dealership, offer to buy all his cars next thursday and he might shut up shop until then unless someone makes a better offer. This will put the sticker price up. On thursday when you can't pay, the sticker price will come down. Nothing has happened to the money supply in that time - which is why during the house price boom, the prices of most other stuff stayed roughly where it was beforehand (including wages) now the BoE, Fed, ECB have added money to the economy to make the banker bullshitters promises come good - and this is inflationary as we are seeing. Quote Link to comment Share on other sites More sharing options...
R K Posted June 8, 2011 Share Posted June 8, 2011 I saw £2.18 for a small pack of caramel digestives in the Co-op, and 4 tins of chopped tomatoes for £2+. These were reduced also! Expensive! I picked up fresh raspberries, baby tomatoes, a pack of salad, 2 x pasta/feta salad meals the other day all for £1.80 in the Co-op. Avg. 80% discount. Supermarkets are struggling to give food away right now and we've not yet entered the next recession (in fact we're still in the first). When gold drops 30% over 10 days or so the hyperinflationists will wake up and take note. Quote Link to comment Share on other sites More sharing options...
winkie Posted June 8, 2011 Share Posted June 8, 2011 Except at Aldi those tinned tomatoes were around 24p last year. You can't dodge inflation by shopping around. Yes you can, buy a packet of tomato seeds and plant in hanging baskets or homemade tubs made out of old wood pallets.....homemade tomato fertiliser from smelly rotted nettles in a bucket with a brick on top, diluted with rain water. Quote Link to comment Share on other sites More sharing options...
azogar Posted June 8, 2011 Share Posted June 8, 2011 I picked up fresh raspberries, baby tomatoes, a pack of salad, 2 x pasta/feta salad meals the other day all for £1.80 in the Co-op. Avg. 80% discount. Supermarkets are struggling to give food away right now and we've not yet entered the next recession (in fact we're still in the first). When gold drops 30% over 10 days or so the hyperinflationists will wake up and take note. oooh, is that a forecast? Quote Link to comment Share on other sites More sharing options...
awaytogo Posted June 8, 2011 Share Posted June 8, 2011 No one paid for their houses in the boom, they promised to pay later. You could walk into your local car dealership, offer to buy all his cars next thursday and he might shut up shop until then unless someone makes a better offer. This will put the sticker price up. On thursday when you can't pay, the sticker price will come down. Nothing has happened to the money supply in that time - which is why during the house price boom, the prices of most other stuff stayed roughly where it was beforehand (including wages) now the BoE, Fed, ECB have added money to the economy to make the banker bullshitters promises come good - and this is inflationary as we are seeing. If you have inflation in product prices and static or falling earnings something has to give you cannot buy everything you used to buy, you need to pay for basic,s energy food etc which as you know are rising, this cuts even further into your static spending power.As i said earlier there is plenty of scope for cuts in prices from China as yet,and they will do to keep going, they know when they need to cut. we are at the early stages of rebalacing of the economy and there are plenty of changes to come. Quote Link to comment Share on other sites More sharing options...
Sour Mash Posted June 8, 2011 Share Posted June 8, 2011 http://www.bloomberg.com/news/2011-06-07/u-k-shop-price-inflation-eases-as-stores-cut-prices-to-attract-consumers.html U.K. shop-price inflation slowed in May to its weakest pace this year as retailers offered more discounts to tempt shoppers, the British Retail Consortium said. Translated: Due to inability to pay high prices shoppers only buy when sellers drop them. How a deflationary spiral is begun. Simple. Deflation cometh and it doeth so quicker than wot many thought. We were told to expect the unexpected and its here. Wow, so things are 'only' 2.3% more expensive than a year ago and this means that inflation is tumbling and deflation is on our doorstep? Have you thought of applying for a job at the BBC? Quote Link to comment Share on other sites More sharing options...
Injin Posted June 8, 2011 Share Posted June 8, 2011 If you have inflation in product prices and static or falling earnings something has to give you cannot buy everything you used to buy, you need to pay for basic,s energy food etc which as you know are rising, this cuts even further into your static spending power.As i said earlier there is plenty of scope for cuts in prices from China as yet,and they will do to keep going, they know when they need to cut. we are at the early stages of rebalacing of the economy and there are plenty of changes to come. They didn't buy the housing, that's the point. They promised to but - later. Later isn't coming, but the banks are getting money printed for them to pay the depositors. It's all about hiding the scam so they can run it again in the future. Quote Link to comment Share on other sites More sharing options...
Guest_FaFa!_* Posted June 8, 2011 Share Posted June 8, 2011 Wow, so things are 'only' 2.3% more expensive than a year ago and this means that inflation is tumbling and deflation is on our doorstep? We have had 0.5% rates, 200bn injected into an economy which is, what, £1.5trn. And yet have inflation around or below that of the biggest credit bubble in recorded history. Wouldn't you expect inflation to be rip roaring away by now? And yet, 2 years after rates going to their lowest level ever, inflation is still at historically low levels. We have needed interest rates around 8% in the past to keep inflation at 5% but now suddenly we don't. What does that tell you? Quote Link to comment Share on other sites More sharing options...
Lepista Posted June 8, 2011 Share Posted June 8, 2011 We have had 0.5% rates, 200bn injected into an economy which is, what, £1.5trn. And yet have inflation around or below that of the biggest credit bubble in recorded history. Wouldn't you expect inflation to be rip roaring away by now? And yet, 2 years after rates going to their lowest level ever, inflation is still at historically low levels. We have needed interest rates around 8% in the past to keep inflation at 5% but now suddenly we don't. What does that tell you? That they will never, ever, let deflation occur? Quote Link to comment Share on other sites More sharing options...
Number79 Posted June 8, 2011 Share Posted June 8, 2011 We have had 0.5% rates, 200bn injected into an economy which is, what, £1.5trn. And yet have inflation around or below that of the biggest credit bubble in recorded history. Wouldn't you expect inflation to be rip roaring away by now? And yet, 2 years after rates going to their lowest level ever, inflation is still at historically low levels. We have needed interest rates around 8% in the past to keep inflation at 5% but now suddenly we don't. What does that tell you? That deflation is their enemy and they would rather destroy the country and economy than ever let it occur? Quote Link to comment Share on other sites More sharing options...
Injin Posted June 8, 2011 Share Posted June 8, 2011 That they will never, ever, let deflation occur? Bingo. If they were going to let the market do it's thing, they wouldn't have a central bank in the first place. Quote Link to comment Share on other sites More sharing options...
Sour Mash Posted June 8, 2011 Share Posted June 8, 2011 (edited) We have had 0.5% rates, 200bn injected into an economy which is, what, £1.5trn. And yet have inflation around or below that of the biggest credit bubble in recorded history. Wouldn't you expect inflation to be rip roaring away by now? And yet, 2 years after rates going to their lowest level ever, inflation is still at historically low levels. We have needed interest rates around 8% in the past to keep inflation at 5% but now suddenly we don't. What does that tell you? On the contrary, we had a massive financial crisis with most of the Western World's major banks insolvent to the tune of trillions of dollars after a decade of one of the biggest credit bubbles in history, oh and Western governments up to their necks in debt. There should have been a massive deflation yet thanks to a policy of money printing and ZIRP, in the last 3 or so years we've had consistent inflation. What does this tell you about how easily it is possible to avoid overall deflation? More money printing and continued ZIRP = no deflation. Keep doing it enough and we'll get hyperinflation. Edited June 8, 2011 by Sour Mash Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted June 8, 2011 Share Posted June 8, 2011 As soon as it looks likely merv will print like mad - deflation will not be allowed to happen. Can`t be stopped if sheeple won`t spend? Quote Link to comment Share on other sites More sharing options...
Injin Posted June 8, 2011 Share Posted June 8, 2011 Can`t be stopped if sheeple won`t spend? Taxy, taxy. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted June 8, 2011 Share Posted June 8, 2011 (edited) We have had 0.5% rates, 200bn injected into an economy which is, what, £1.5trn. And yet have inflation around or below that of the biggest credit bubble in recorded history. Wouldn't you expect inflation to be rip roaring away by now? And yet, 2 years after rates going to their lowest level ever, inflation is still at historically low levels. We have needed interest rates around 8% in the past to keep inflation at 5% but now suddenly we don't. What does that tell you? There is a lot of room for contraction in the modern economy before official deflation? Depression era Joe didn`t see 12 varieties of shower gel from six different brand names? Lots of jobs can go before real deflation? Edited June 8, 2011 by dances with sheeple Quote Link to comment Share on other sites More sharing options...
Guest_FaFa!_* Posted June 8, 2011 Share Posted June 8, 2011 What does this tell you about how easily it is possible to avoid overall deflation? More money printing and continued ZIRP = no deflation. Keep doing it enough and we'll get hyperinflation. All this tells us is you can keep the wolf from the door for a few years. There won't be hyperinflation - it will kill the banks' yield so they won't allow it. Inflation is killing demand, the death of demand ends the commodities bubble. End of the commodities bubble ends the situation of the last few years. Quote Link to comment Share on other sites More sharing options...
winkie Posted June 8, 2011 Share Posted June 8, 2011 On the contrary, we had a massive financial crisis with most of the Western World's major banks insolvent to the tune of trillions of dollars after a decade of one of the biggest credit bubbles in history, oh and Western governments up to their necks in debt. There should have been a massive deflation yet thanks to a policy of money printing and ZIRP, in the last 3 or so years we've had consistent inflation. What does this tell you about how easily it is possible to avoid overall deflation? More money printing and continued ZIRP = no deflation. Keep doing it enough and we'll get hyperinflation. ....they create to inflate, then they refinance, bailout, print, inflate all there is left is default to start again.....more money less debt?.......round and round we go. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted June 8, 2011 Share Posted June 8, 2011 Taxy, taxy. Most sheeple don`t have anything worth taxing? Why else would they need credit? Tax the elites you mean? Quote Link to comment Share on other sites More sharing options...
winkie Posted June 8, 2011 Share Posted June 8, 2011 Most sheeple don`t have anything worth taxing? Why else would they need credit? Tax the elites you mean? ...if you can't earn it, can't borrow it you can't spend it so how can you tax it? Quote Link to comment Share on other sites More sharing options...
Injin Posted June 8, 2011 Share Posted June 8, 2011 Most sheeple don`t have anything worth taxing? Why else would they need credit? Tax the elites you mean? You are wondering where demand is going to come from. I am answering "taxy, taxy" I think i'm right in saying that every period of fiat money so far has ended with soldiers/police/etc trying to get people to use the currency at bayonet point. Seen those pictures of people with wheelbarrows full of money? Ever asked why they were still bothering or where they were barrowing to? Clue : tax office. Quote Link to comment Share on other sites More sharing options...
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