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Uk Household Squeeze At Its Worst For Two Years

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Marvellous - more debt (loans an credit card debt) being taken up to offet cost increases and income stagnation, but it i just the fuel costs that are rising, better not mention all the other items are are rising at or near dougle digit rates as a result directly of monetary policy and currency/purchasing power detruction.

http://www.telegraph.co.uk/finance/economics/8658476/UK-household-squeeze-at-its-worst-for-two-years.html

UK household squeeze at its worst for two years

British household finances have deteriorated to the lowest point since the depths of the recession, heightening concerns that the economy may be slipping back into a double-dip downturn.

Rising fuel costs, the government's fiscal squeeze and faltering global growth are all eating deep into spending power.

Ambrose Evans-Pritchard

By Ambrose Evans-Pritchard, International Business Editor

6:00AM BST 25 Jul 2011

CommentsComment

Markit's monthly survey of consumers shows that the triple blows of rising fuel costs, the government's fiscal squeeze and faltering global growth are all eating deep into spending power.

The household finance index (HFI) dropped sharply to 34.4 in July, with 38pc feeling worse off than a month ago compared to just 6pc seeing an improvement. "The latest reading signalled that the rate of deterioration was just as severe as the survey-record seen in March 2009," said Markit.

The index, which is watched closely as a leading indicator of consumer spending, has been released ahead of the publication of Britain's gross domestic product (GDP) figures tomorrow.

City economists fear that GDP growth may have fallen below zero in the second quarter, following a lacklustre winter.

According to Markit, credit card debt and unsecured lending saw the biggest jump in over a year despite falling incomes, suggesting that growing numbers are borrowing to keep afloat.

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I have now cut right back and refuse to spend anything above the bear basics. Not because I can't afford to..

I am cutting back in protest.

Every time I don't spend I get a nice warm satisfaction knowing I am saving and also making the current government look bad.

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I have now cut right back and refuse to spend anything above the bear basics. Not because I can't afford to..

I am cutting back in protest.

Every time I don't spend I get a nice warm satisfaction knowing I am saving and also making the current government look bad.

I am doing exactly the same, if they want to play then let's play...

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It is a shame no-one explains the sheeple that there living standard would improve dramatically if the cost of housing was allowed to drop.

I wasn't there in the 70's but I thought there was huge wage inflation, or was it is the 80's?

I was, there was, it wasn't.

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I have now cut right back and refuse to spend anything above the bear basics. Not because I can't afford to..

I am cutting back in protest.

Every time I don't spend I get a nice warm satisfaction knowing I am saving and also making the current government look bad.

Likewise.

The guy in the supermarket buying smart price? That's me. The rest is going on gold and silver.

That's what you get for ramping prices and trashing my savings you fkrs. Go "grow" yourselves out of that.

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I have now cut right back and refuse to spend anything above the bear basics. Not because I can't afford to..

I am cutting back in protest.

Every time I don't spend I get a nice warm satisfaction knowing I am saving and also making the current government look bad.

Snap. I buy myself quality food but that is it as far as 'treats' go. No pointless tat, clothes as and when I need them. £10 a month phone contract.

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It is a shame no-one explains the sheeple that there living standard would improve dramatically if the cost of housing was allowed to drop.

I wasn't there in the 70's but I thought there was huge wage inflation, or was it is the 80's?

Times were tough in the 70s from what I can remember...food and fuel was very expensive interest rates were high lending was hard to obtain and property was expensive in comparison to peoples wages....about £25 to £30 per week an average wage......coming from a large family we were taught how to economise....have been doing so ever since, it's paid hefty dividends over the years. ;)

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Likewise.

The guy in the supermarket buying smart price? That's me. The rest is going on gold and silver.

That's what you get for ramping prices and trashing my savings you fkrs. Go "grow" yourselves out of that.

+2

(keeping the majority of our £'s in bonds [1-2 year], locked away short term to resist the temptation to spend). :rolleyes:

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Part of one of the comments below that article was funny:

Also...........Let's put the pensioners in jail and the criminals in a

nursing home. This way the pensioners would have access to showers, hobbies

and walks. They'd receive unlimited free prescriptions, dental and medical

treatment, wheel chairs etc and they'd receive money instead of paying it

out.

They would have constant video monitoring, so they could be helped

instantly, if they fell, or needed assistance.

Bedding would be washed twice a week, and all clothing would be ironed and

returned to them.

A guard would check on them every 20 minutes and bring their meals and

snacks to their cell.

They would have family visits in a suite built for that purpose.

They would have access to a library, weight room, spiritual counselling,

pool and education. Simple clothing, shoes, slippers, PJ's and legal aid

would be free, on request.

Private, secure rooms for all, with an exercise outdoor yard, with gardens.

Each senior could have a PC a TV radio and daily phone calls.

There would be a board of directors to hear complaints, and the guards would

have a code of conduct that would be strictly adhered to.

The criminals would get cold food, be left all alone and unsupervised.

Lights off at 8pm, and showers once a week. Live in a tiny room and pay

£600.00 per week and have no hope of ever getting out.

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Part of one of the comments below that article was funny:

The fastest rising age group of criminals in Japan are the retired, who are committing petty crime for exactly the reasons this quote makes. :o

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Times were tough in the 70s from what I can remember...food and fuel was very expensive interest rates were high lending was hard to obtain and property was expensive in comparison to peoples wages....about £25 to £30 per week an average wage......coming from a large family we were taught how to economise....have been doing so ever since, it's paid hefty dividends over the years. ;)

Were the hard times responsible for your annoying facial tic ? ;)

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The fastest rising age group of criminals in Japan are the retired, who are committing petty crime for exactly the reasons this quote makes. :o

I was watching Boys from the Black stuff the other week. A local tramp was doing the exactly the same. One smashed shop window meant a warm bed for the night.

Edited by StainlessSteelCat

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Likewise.

The guy in the supermarket buying smart price? That's me. The rest is going on gold and silver.

That's what you get for ramping prices and trashing my savings you fkrs. Go "grow" yourselves out of that.

+1 How about 'growing' your own food, and eating the queens swans?

Times were tough in the 70s from what I can remember...food and fuel was very expensive interest rates were high lending was hard to obtain and property was expensive in comparison to peoples wages....about £25 to £30 per week an average wage......coming from a large family we were taught how to economise....have been doing so ever since, it's paid hefty dividends over the years. ;)

dito 100%

although 'They' are trying to undo our prudent behaviour.

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The fastest rising age group of criminals in Japan are the retired, who are committing petty crime for exactly the reasons this quote makes. :o

20 odd years since Japans property bubble burst and this is the price that is being extracted from those who saved and worked all their lives. In fact everyone at the bottom of the heap from new start workers to pensioners at the end of their working lives have been stiffed by the zirp policy. No wage rises, minimal inflation disguised as zero inflation which has determined wage rises etc, has compounded into a 50% decrease in living standards for most people in Japan, all to save their scummy **** bankers and big business.

Sound familiar? I can see UK doing the same for the next 20 years+++ however doesnt have the same big industrial base anymore, and I cant see the long term need for the UK's 'service' sector being needed by foreign entities.

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It is a shame no-one explains the sheeple that there living standard would improve dramatically if the cost of housing was allowed to drop.

I wasn't there in the 70's but I thought there was huge wage inflation, or was it is the 80's?

I was, there was, and there was - for the right sort of people.

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20 odd years since Japans property bubble burst and this is the price that is being extracted from those who saved and worked all their lives. In fact everyone at the bottom of the heap from new start workers to pensioners at the end of their working lives have been stiffed by the zirp policy. No wage rises, minimal inflation disguised as zero inflation which has determined wage rises etc, has compounded into a 50% decrease in living standards for most people in Japan,

Is this true? I am confused about Japan's lost decades. There was an article recently (can't remember where yet) which argued that they weren't really lost at all. It said that standard of living had actually risen, that the strong Yen meant imports were affordable and that deflation had kept a lid on domestic prices.

Cental to is argument was the idea that despite supposedly poor GDP growth for years, Japan still ranked roughly where it did in '89 in terms of exchange-weighted GDP per capita relative to other countries. It suggested that GPD figures were mainly measuring inflation and population growth rather than real per capita growth.

This seems an important point to me (whether it is true or not) - usually GDP growth figures are looked at but even small systematic errors in inflation adjustment will over time grossly distort the impression of national economic performance. Why don't we look at exchange rate adjusted GDP per capita a bit more?

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Is this true? I am confused about Japan's lost decades. There was an article recently (can't remember where yet) which argued that they weren't really lost at all. It said that standard of living had actually risen, that the strong Yen meant imports were affordable and that deflation had kept a lid on domestic prices.

Cental to is argument was the idea that despite supposedly poor GDP growth for years, Japan still ranked roughly where it did in '89 in terms of exchange-weighted GDP per capita relative to other countries. It suggested that GPD figures were mainly measuring inflation and population growth rather than real per capita growth.

This seems an important point to me (whether it is true or not) - usually GDP growth figures are looked at but even small systematic errors in inflation adjustment will over time grossly distort the impression of national economic performance. Why don't we look at exchange rate adjusted GDP per capita a bit more?

All I know is that my Japanese in-laws keep offering to buy the wife a new car as her current Rover is 'too old'. Apparently "5 million would be enough wouldn't it?"

They seem unaware of the fact that 5 million is now 40k unlike 5 years ago when it was 20k!

Edited by council dweller

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  • 284 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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