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Constable

House Prices Measured In Non-Sterling

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I think most of us agree that one of the main reasons that a nominal HPC has been avoided in the UK has been the devaluation/debasement of the £.

The average person has no idea of this wealth destruction because they don't understand or don't want to understand.

Can someone clever create and maintain some charts of UK house prices measured in other currencies/metals since 2007.

Suggestion... use Land Registry house price figures and plot in £, $, euros, swiss francs, aussie dollars, Yen, gold and silver.

Adjusted for inflation would be even better.

It would make for an illuminating chart that we could try to get out to the MSM.

Edited by Constable

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I don't know about gold but measured in Swiss Francs I now get twice as many GBP for my Swiss Franc compared to mid-2007. Tack in the 'pleasant' and hopefully continuing fall in UK prices then those of us retiring to the UK will be 'Quids In'.

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It would make for an illuminating chart that we could try to get out to the MSM.

For what purpose? To try make people exit sterling? To show them how the government are allowing the UK to be asset stripped by foreigners because houses are cheap to them but still far too expensive for us?

Why not do a chart of the purchasing power of sterling to show people how their wealth is being stolen? Explain that inflation is an index and that if/when inflation falls it just means prices aren't rising as fast but they are still rising - so the damage is done permanently. Every £1 we have will buy less forever and via negative real interest rates,savers have the loss compounded - the interest they are not getting now can never earn any interest in the future.

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Unfortunately as my wages are paid in sterling it makes no difference how prices have performed relative to other currencies or metals.

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For what purpose? To try make people exit sterling? To show them how the government are allowing the UK to be asset stripped by foreigners because houses are cheap to them but still far too expensive for us?

Why not do a chart of the purchasing power of sterling to show people how their wealth is being stolen? Explain that inflation is an index and that if/when inflation falls it just means prices aren't rising as fast but they are still rising - so the damage is done permanently. Every £1 we have will buy less forever and via negative real interest rates,savers have the loss compounded - the interest they are not getting now can never earn any interest in the future.

To illustrate how wealth destruction is occurring via stealth to save the banks.

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To illustrate how wealth destruction is occurring via stealth to save the banks.

You need the inflation bit then and not just houses because lots of people own houses so won't be bothered. They need to be told that what they may have saved on the value of their house is being taken away in living costs etc. so they are no better off.

It's not just to save banks is it? People in credit are having their wealth stolen by people in debt, i.e. the government is embracing moral hazard and the message is "be in debt and we will help you, be in credit and we will steal form you". Don't work, don't save, just live above your means and when it falls apart we will bail you out at the expense of those fools who have "done the right thing" and supported themselves.

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I don't know about gold but measured in Swiss Francs I now get twice as many GBP for my Swiss Franc compared to mid-2007. Tack in the 'pleasant' and hopefully continuing fall in UK prices then those of us retiring to the UK will be 'Quids In'.

The Yen was at 250 to the Gbp when I arrived back here 5 years ago and as of yesterday it's at 126. Don't need a graph to show that.

At this point devaluation is all we've got going for us......is it not? It's all the govt. and BoE have left.

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As a farmer I check my outstanding mortgage against Tonnes of Wheat. 1500 tonnes 2001.Same mortgage 636 tonnes now . Have some of that!

42% increase in the value of your wheat.

What percentage do you feel better off by overall? i.e. minus any increase in production costs (fertilizer, diesel, etc) and your living costs.

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42% increase in the value of your wheat.

What percentage do you feel better off by overall? i.e. minus any increase in production costs (fertilizer, diesel, etc) and your living costs.

Wheat 2001=£70 tonne(probably losing money)

Wheat 2011=£162 tonne(+131%,if my maths are correct,now making a profit)

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Unfortunately as my wages are paid in sterling it makes no difference how prices have performed relative to other currencies or metals.

To make you feel really bad, someone should do a chart of inflation adjusted wages against other currencies

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As a farmer in 2001 the Nat-West bank loaned me 1500 tonnesof wheat to buy a small cottage to retire to . I would need to give them 75 tonnes per year for 20 years plus interest. That was the deal on the day.

Although I have paid off some of the capital if the original loan was the same I would now owe The bank 636 tonnes only 31.8 tonnes per year for the 20 years.

If i had bought a house in 1970 after leaving school when houses were probably about £2000 I would have needed about 100 tonnes of Wheat @£20 tonne. This says as much about how real wheat prices fell for 40 years as how real house prices increased,most likely on the back of ever lower real wheat prices and by extension food prices in general.

Could wheat prices ever get back to 100 tonnes per house? The average house is now about 1000 tonnes. It is almost a racing certainty(sorry for the oxymoron)that the weight of wheat needed to buy a house is going to reduce.

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Sorry my data is a bit patchy ... if someone has "fuller" histories of exchange rates I am happy to update the graphs. Basically all I did was to download the Nationwide monthly data (which goes all the way back to 91 if someone has exchange rates all the way back then?) and used a monthly exchange rate which we use at work, sourced from the FT on the first working day of each month.

I think they show decent drops in AUD, BRL and JPY., with most other currencies registering about a 25% drop.

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Sorry my data is a bit patchy ... if someone has "fuller" histories of exchange rates I am happy to update the graphs. Basically all I did was to download the Nationwide monthly data (which goes all the way back to 91 if someone has exchange rates all the way back then?) and used a monthly exchange rate which we use at work, sourced from the FT on the first working day of each month.

I think they show decent drops in AUD, BRL and JPY., with most other currencies registering about a 25% drop.

Try this site http://www.global-view.com/forex-trading-tools/forex-history/index.html

you can download in csv format daily historicals for many pairs, please could you do one priced in CHF, thanks

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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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