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Realistbear

Warning On Uk Economy's Strength

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An "alarming" set of manufacturing figures has cast doubt on the strength of the UK economy, according to the British Chambers of Commerce (BCC).

http://news.bbc.co.uk/1/hi/business/4337724.stm

With manufacturing and services tanking the only thing left is house prices and as they produce nothing other than speculative froth the HPC must be just around the corner.

What is interesting is Gordon's response:

"The British economy is growing faster than Germany, France, the Netherlands, Italy and faster than the EU."

At least we are all sinking together!

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Inflation is rising while the economy is heading into recession or at least a severe downturn.

Seems reminiscent of the seventies. Isn't it called stagflation ?

Great news for STRs who will benefit from higher interest rates on savings while house prices head downward. My guess is, however, that inflation will be short lived as rising unemployment and declining sales will prevent much in the way of price inflation. The house market is dead that is for sure. In the medium term the BoE and Fed cannot lower rates as inflationary momentum is present and both Al and Mervyn expect some froth to be removed from house prices as part of the price to pay for steering the economy back onto a stable path.

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Crikey - check out the navigation sidebar on that page!

ECONOMIC INDICATORS

Public sector jobs increase

Slowest growth in 12 years

Brown admits forecast wrong

UK 'broke budget deficit rules'

High Street sales under pressure

Manufacturing output still rising

Sixth monthly rise in UK jobless

Petrol prices fuel inflation rise

I've not selected out the bearish ones, that's the actual list!

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I really dont want stagflation.

this is the last thing any saver, STR or FTB should want as it will erode the value of your saving / deposit whilst reducing the real value of mortgage debt.

This could make it more difficult - not easier to get back into the market.

The dream scenario is a small rise in inflation and then a general deflationary recession. I would even prefer the deflation without any inflation at all.

Deflation means that the real value of mortgage debt stays high and that house prices will probably fall more rapidly.

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"Bull-sh*t! Don't be stupid - the British economy is unsinkable - Titanic Gordon says so!"

brown15sq.jpg

"Wait a minute! Where's my super Gordon brown rule! Sh*t! Inflation is rising!! The economy is sinking! Help!!"

brown25bd.jpg

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"Bull-sh*t! Don't be stupid - the British economy is unsinkable - Titanic Gordon says so!"

brown15sq.jpg

"Wait a minute! Where's my super Gordon brown rule! Sh*t! Inflation is rising!! The economy is sinking! Help!!"

brown25bd.jpg

Now, you have it all wrong.

Have faith.

GB is the 2nd man in history with the ability to walk on water.

Problem is most of the rest of the population don't have lifebelts.

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“Higher oil prices have caused the difficulties that all economies face”

Gordon Brown, Chancellor of the Exchequer

So our problems haven't been caused by out of control spending, debt and the artificial proping up of certain companies then, Gordy?

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  • 301 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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