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tomandlu

Consumer Relief = High Inflation?

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Well, in fairness, it might just be the DM spin on it, rather than what King actually said, but this perplexed me:

But to the relief of consumers, he made clear that he is in no hurry to raise interest rates from the present 0.5 per cent to combat rampant inflation.

How in buggeration is high inflation meant to be a relief? Perhaps they meant "to relieve the consumers of their spending power..."

Hmm, on second thoughts, this is the DM, so I guess they might assume that everyone has a stonking great mortgage on a tracker... I dunno, seems a bit brain-dead to me...

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Well, in fairness, it might just be the DM spin on it, rather than what King actually said, but this perplexed me:

How in buggeration is high inflation meant to be a relief? Perhaps they meant "to relieve the consumers of their spending power..."

Hmm, on second thoughts, this is the DM, so I guess they might assume that everyone has a stonking great mortgage on a tracker... I dunno, seems a bit brain-dead to me...

Given the huge numbers with debt above the level of the pain threshold to have it inflated away would be heaven. But will the banks want that? They might like a dose of deflation so that all that debt gets very real.

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Given the huge numbers with debt above the level of the pain threshold to have it inflated away would be heaven. But will the banks want that? They might like a dose of deflation so that all that debt gets very real.

So 'consumers' = 'over-indebted'?

I'm not entirely convinced that this group are thinking "oh goody, low interest rates - let's really pile on the pounds" right now... and it would seem that the latest retail figures agree with me...

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So 'consumers' = 'over-indebted'?

I'm not entirely convinced that this group are thinking "oh goody, low interest rates - let's really pile on the pounds" right now... and it would seem that the latest retail figures agree with me...

If I had a huge debt, and was only just scraping by with historic low interest rates,m and I'd just had my hours halved, I'd be relieved by myopic mervs comments.

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Given the huge numbers with debt above the level of the pain threshold to have it inflated away would be heaven. But will the banks want that? They might like a dose of deflation so that all that debt gets very real.

Erm if they hyperinflate the banks debts can be paid.

If they don't there will be mass default.

Which is best for the bankers?

A mass changing of worthless paper into hard assets and labour from the proles

or

A giant "get stuffed" mass debt default and no further income

?

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Erm if they hyperinflate the banks debts can be paid.

If they don't there will be mass default.

Which is best for the bankers?

A mass changing of worthless paper into hard assets and labour from the proles

or

A giant "get stuffed" mass debt default and no further income

?

Ding, ding. This is why the bond market is so amenable to QE.

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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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