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Inflation 16Th August 2011

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housing & household services where the largest effect was due to increases in housing rent, particularly for social housing provided by registered social landlords

WTF?

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Never mind the price of bread is shooting up, the circus that is X Factor is starting soon.

"Bread and Circuses" (or bread and games) (from Latin: panem et circenses) is a metaphor for a superficial means of appeasement. In the case of politics, the phrase is used to describe the creation of public approval, not through exemplary or excellent public service or public policy, but through the mere satisfaction of the immediate, shallow requirements of a populace. The phrase also implies the erosion or ignorance of civic duty amongst the concerns of the common man (l'homme moyen sensuel).

In modern usage, the phrase has become an adjective to describe a populace that no longer values civic virtues and the public life. To many across the political spectrum, left and right, it connotes the triviality and frivolity that characterized the Roman Empire prior to its decline.

http://en.wikipedia.org/wiki/Bread_and_circuses

Edited by nmarks

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FTSE's not liking the news. Down 1.5% and falling.

That's due to the shocking german GDP figure rather than this. This was pretty expected even by the mainstream.

Anyway not to worry because this is exactly what Merv said would happen, inflation spike short term before dropping back below target next year. Alls well.

Edited by Pent Up

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Anyway not to worry because this is exactly what Merv said would happen, inflation spike short term before dropping back below target next year. Alls well.

Shame Merv hasn't factored into his calculations that he'll be jamming down the print button when the next financial balloon of doom pops.

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Sharing the pain...inflating the way out... debtor bail out..

nope, not without wage inflation, wage inflation plus rpi = uncompetitive so nope again.

current monetary policy is to prop up the housing market at all costs, because if house drop the banks go and if the banks go the economy goes, if the economy goes the deficit balloons, if the deficit balloons we can't borrow any more cash and then it's goodnight vienna.

go for growth!!

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nope, not without wage inflation, wage inflation plus rpi = uncompetitive so nope again.

current monetary policy is to prop up the housing market at all costs, because if house drop the banks go and if the banks go the economy goes, if the economy goes the deficit balloons, if the deficit balloons we can't borrow any more cash and then it's goodnight vienna.

go for growth!!

And where is the growth going to come from, I wonder? The only thing that will grow is the base money supply and prices.

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And where is the growth going to come from, I wonder? The only thing that will grow is the base money supply and prices.

A just question my liege.

People wont work and businessmen wont invest if you take too much of what they produce away from them. With the state at over 50% of the nations output, that means the private sector have to shoulder a massive burden. All those bailed out bankers, overpaid public servants, massive pensions, expensive justice in the courts, foreign wars of no relevance to the UK and huge runaway and inflation linked benefits and subsidised council housing, not to mention the cost of the deadweight EU, all of that is a pretty big disincentive to produce anything as most of what you produce is taken away. It is also a pretty big inducement to join the ranks of those taking.

And it is the producers that are going to bring growth, real growth to the UK, not that other bunch.

There was one talking head on the news about a week ago, suggested that real wages in the UK could decline by about a quarter over the next 30 years. The decline is likely to be just that or more if the Politicians dont clear out all the freeloaders that are getting a free ride on the backs of those in the UK that are working hard and producing things. So far the Tories have just made things worse, with more tax hikes, more pension benefits and massive payouts to a lucky few that are getting early redundancy.

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Why bother with this charade any more? We know that King et al are not going to raise interest rates and are operating well outside their remit to control inflation. For years now they have been acting as an unelected branch of government and concerning themselves with extraneous factors such as government debt and economic growth.

They should stop meeting and save on biscuits.

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It is absolutely nothing to do with VAT either. Zero-rated items (safety footwear for instance) are going through the roof.

Edited by cica

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It is absolutely nothing to do with VAT either. Prices before VAT or even zero-rated items (safety footwear for instance) are going through the roof.

To be fair, the increase in VAT will also have put upward pressure on inflation figures so when it drops out at the end of the year, there should be less inflationary pressure than otherwise.

Then again, no-one in the media ever mentioned the DEflating effect of the VAT cut to 15%, made at a time when the very same economic authorities were trying to scare us with the deflationary boogeyman myth.

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nope, not without wage inflation, wage inflation plus rpi = uncompetitive so nope again.

current monetary policy is to prop up the housing market at all costs, because if house drop the banks go and if the banks go the economy goes, if the economy goes the deficit balloons, if the deficit balloons we can't borrow any more cash and then it's goodnight vienna.

go for growth!!

House prices will not be allowed to offically fall whilst the banks remain nationalised.

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To be fair, the increase in VAT will also have put upward pressure on inflation figures so when it drops out at the end of the year, there should be less inflationary pressure than otherwise.

Then again, no-one in the media ever mentioned the DEflating effect of the VAT cut to 15%, made at a time when the very same economic authorities were trying to scare us with the deflationary boogeyman myth.

It's quaint the way you think VAT will fall back to 15%.

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A just question my liege.

People wont work and businessmen wont invest if you take too much of what they produce away from them. With the state at over 50% of the nations output, that means the private sector have to shoulder a massive burden. All those bailed out bankers, overpaid public servants, massive pensions, expensive justice in the courts, foreign wars of no relevance to the UK and huge runaway and inflation linked benefits and subsidised council housing, not to mention the cost of the deadweight EU, all of that is a pretty big disincentive to produce anything as most of what you produce is taken away. It is also a pretty big inducement to join the ranks of those taking.

And it is the producers that are going to bring growth, real growth to the UK, not that other bunch.

There was one talking head on the news about a week ago, suggested that real wages in the UK could decline by about a quarter over the next 30 years. The decline is likely to be just that or more if the Politicians dont clear out all the freeloaders that are getting a free ride on the backs of those in the UK that are working hard and producing things. So far the Tories have just made things worse, with more tax hikes, more pension benefits and massive payouts to a lucky few that are getting early redundancy.

Yes, yes and yes again!

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housing & household services where the largest effect was due to increases in housing rent, particularly for social housing provided by registered social landlords

Of course. Social Landlords can put up rent to whatever they like - who is there to stop them? (Serious question as we know who is there to pay them, but who is there to stop them?).

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Why bother with this charade any more? We know that King et al are not going to raise interest rates and are operating well outside their remit to control inflation. For years now they have been acting as an unelected branch of government and concerning themselves with extraneous factors such as government debt and economic growth.

They should stop meeting and save on biscuits.

+1

sack them all

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Mt reply in another thread:

Inflation is killing everybody at the expense of the home-loaners.

If you work hard fr a living then there's likely no getting away from massive hikes in rail/bus/petrol... then the price of food going up...

Really it is becoming not worth going to work. It is an absolute scandal.

My company links inflation-linked rises (if you're lucky enough to get them) to American inflation which is much lower. Who on EARTH is going to be getting 8%+ pay rises to combat this?

Mervyn is ruining our country - Tory Dave is almost as bad as Gordon Clown.. we have no hope!

But at least those with mega mortgages will be able to keep paying them off.

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And so much for buying a house out of town because they're cheaper. NO CHANCE now as travel costs are going to wipe that possibility away.

So you can't buy an overpriced home close to work, can't buy one further away due to travel costs (which are now totally out of control, and assuming you want to buy, of course)... totally stuffed.

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It is absolutely nothing to do with VAT either. Zero-rated items (safety footwear for instance) are going through the roof.

"At constant tax rates, CPI inflation was 2.8% in July."

Osborne's causing significant damage.

When Mervyn writes his letter, Osborne writes back telling him to keep calm and carry on.

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  • 334 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
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      • up 5%



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