TheCountOfNowhere Posted February 3, 2015 Share Posted February 3, 2015 Deflation seems to be getting a bit of a hard time from the VI banker puppet types....so I thought,,,what's the best things about deflation: 1) Peoples wages will buy more. 2) Peoples savings ( which they have worked for and have paid tax on, and still do ) will be worth more. 3) With every increase in deflation index linked saving certs will be more and more valuable 4) Saving for a house will be easier ( not a deposit, a full house ) 5) Property bulls might finally STFU 6) People in debt will pay more 7) People who want to take out debt will think twice about doing so 8) Beer might become cheaper. 9) People might be able to afford the petrol to drive and see their 90 year old granny and cut the grass for her ( in her massive 6 bed house ). 10) People might realise what ****s estate agents are. For me, I cannot see a downside to deflation. None. Mind you, I don't owe a penny to anyone. Quote Link to comment Share on other sites More sharing options...
norseraider Posted February 3, 2015 Share Posted February 3, 2015 Mmm, beer. Quote Link to comment Share on other sites More sharing options...
LondonIsFallingDown Posted February 3, 2015 Share Posted February 3, 2015 More beer? Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 3, 2015 Author Share Posted February 3, 2015 More beer? I've stopped drinking in the pub just because of the price of a pint. It was more my friends couldn't afford it than myself but it was getting silly. I used to love a pint too. Quote Link to comment Share on other sites More sharing options...
Greg Bowman Posted February 3, 2015 Share Posted February 3, 2015 I've stopped drinking in the pub just because of the price of a pint. It was more my friends couldn't afford it than myself but it was getting silly. I used to love a pint too. Don't do much at all probably same reason but when you can quite easily spend £40 on a social drink two rounds of 4 drinks it gets silly Quote Link to comment Share on other sites More sharing options...
hackney Posted February 3, 2015 Share Posted February 3, 2015 Bring it on! Perhaps finally those of us with no debt will be rewarded for our prudence. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 3, 2015 Author Share Posted February 3, 2015 Don't do much at all probably same reason but when you can quite easily spend £40 on a social drink two rounds of 4 drinks it gets silly I think this is partly why we've seen the rise of the coffee houses. Young people willing or able to spank 40 quid on a few bevvies now spend £2.40 ( a p*sstake in my view ) for a cup of hot flavoured water with some caffeine in it. Unlike beer they could make the equivalent drink at home for a fraction of the cost. Maybe it's a good thing though. Quote Link to comment Share on other sites More sharing options...
norseraider Posted February 3, 2015 Share Posted February 3, 2015 Just bottled up 40 pints of lovingly crafted homebrew... only about 50p a pint Get on Amazon and buy a kit with a couple of pals -- it's good fun, and provides lots of excuses to see your buddies and drink your creations (after all, you earned it!). Quote Link to comment Share on other sites More sharing options...
Digsby Posted February 3, 2015 Share Posted February 3, 2015 It could be something to do with the fact that I've just won £1000 on my premium bonds, but I feel really optimistic at the moment. I'm looking forward to the day I announce I'm buying a house to be told "it's a bad time to be getting into property" by the HPI forever brigade. Quote Link to comment Share on other sites More sharing options...
Greg Bowman Posted February 3, 2015 Share Posted February 3, 2015 I think this is partly why we've seen the rise of the coffee houses. Young people willing or able to spank 40 quid on a few bevvies now spend £2.40 ( a p*sstake in my view ) for a cup of hot flavoured water with some caffeine in it. Unlike beer they could make the equivalent drink at home for a fraction of the cost. Maybe it's a good thing though. I like a drink but I have a feeling it is at it's nadir as a social thing, Agree with your coffee comment. I also have a nagging feeling that doping the masses is part of the establishment plan. I know quite a few youngsters who could afford that £40 either through their ex's or own money and it isn't part of their life like it was ours Quote Link to comment Share on other sites More sharing options...
norseraider Posted February 3, 2015 Share Posted February 3, 2015 Just yesterday I almost choked into my coffee when I read this article from CityAM: Apparently we aren't saving enough, and that is socially irresponsible of us. LOL, and we are spending it all on caffeinated-water! The author offers some really bats**t policy "solutions" for encouraging saving, such as penal taxes for those who can save but refuse! Enlightened, free market stuff She does nothing to address the main point that saving is mugs' game when you have ZIRP, no returns, and rampant inflation... Savers in the UK are punished already, and the indebted are rewarded... for this reason alone I welcome a bit of deflation! Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 3, 2015 Author Share Posted February 3, 2015 is mugs' game when you have ZIRP, no returns, and rampant inflation... None of which we have in the UK, 5.1% on zopla Inflation, what wa sit 0.5% 3% on some current accounts. Plenty of low risk returns. Keep saving. Quote Link to comment Share on other sites More sharing options...
norseraider Posted February 3, 2015 Share Posted February 3, 2015 5.1% on zopla Inflation, what wa sit 0.5% 3% on some current accounts. I assume you are being sarcastic, but just in case. That Zopa rate is for a five-year peer-to-peer loan - not exactly low risk. Inflation is falling now, but has outstripped interest rates for the best part of a decade. You can get 3% on current accounts, but only on limited balances - it's a marketing gimmick. Term deposits on bank accounts are rock bottom. Bond yields are rock bottom. The BoE rate is 0.5%; 12 month Libor is under 1%. I don't blame anyone for not being tempted by these returns! Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 3, 2015 Author Share Posted February 3, 2015 (edited) I assume you are being sarcastic, but just in case. That Zopa rate is for a five-year peer-to-peer loan - not exactly low risk. Inflation is falling now, but has outstripped interest rates for the best part of a decade. You can get 3% on current accounts, but only on limited balances - it's a marketing gimmick. Term deposits on bank accounts are rock bottom. Bond yields are rock bottom. The BoE rate is 0.5%; 12 month Libor is under 1%. I don't blame anyone for not being tempted by these returns! Not me mate, no sarcasm. Zopas no more risky that putting your money on the stock market or in a bank. Do you honest believe the FCS advert they put on the radio !!! We'll guarantee your savings, my ***e. If they have to tell you every day this is true then you've got to start wondering why !!! Inflation was higher, so were interest rates. NS&I index linked bonds were the thing to have at that point. 3% saving rates up to £20K....you show me many 21 year olds coming out of Uni with £20K of savings and how long would it take then to reach that limit. It might be a marketing giummick but it is one that can be used to save. Bond yields matter not to someone with a small amount of savings beating inflation right now. The BoE base rate is 0.5%, yeah so, that's inter bank lending, not mortgage rates, nor savings rates. The only thing suppressing savings rates was FLS, take away the magic money tree and where would the banksters get their cash from. This could change over night. When the Americans raise....we raise. You can easily save above inflation right now, you could in the past, Some of my 3% 5 year bonds that I grudged signing up for 12 months ago are now looking a good bet. My house fund since 2007 has massive outstripped house prices, just in savings. We could easily see BIG, long term deflation, especially with the collapse of the london mega bubble. Savings are a long game. Some you win some you loose. But what you are saying is clearly not true. Edited February 3, 2015 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
winkie Posted February 3, 2015 Share Posted February 3, 2015 The best thing about deflation is you keep finding really good things you can do for free or for almost free....things that used to be not so appealing just because they were free, but are now far better for you because they are free. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 3, 2015 Author Share Posted February 3, 2015 Maybe cream eggs will get bigger.... Quote Link to comment Share on other sites More sharing options...
ThePiltdownMan Posted February 3, 2015 Share Posted February 3, 2015 If we are in for deflation, isn't there more chance of bankruptcies, insolvencies and eventually bank bail ins. Whether we like it or not we are all in it together. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 3, 2015 Author Share Posted February 3, 2015 (edited) If we are in for deflation, isn't there more chance of bankruptcies, insolvencies and eventually bank bail ins. Whether we like it or not we are all in it together. Yes, that is true, yet another great side effect. If you cant pay the debt, don't take it out. It's quite simple. There really is no down side to deflation, unless you are a banker, a politician or a sub-prime levered up borrower. Who do you run the country for, their sake or everyone elses ? Edited February 3, 2015 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
winkie Posted February 3, 2015 Share Posted February 3, 2015 Maybe cream eggs will get bigger.... ...better still stop eating them altogether then they no longer exist, reduced to nothing. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 3, 2015 Author Share Posted February 3, 2015 (edited) ...better still stop eating them altogether then they no longer exist, reduced to nothing. No way, I want bigger ones. When I was a kid they were this size !!!! Have a look on pimp that snack, it's one of my favourite web sites!!! Edited February 3, 2015 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
winkie Posted February 3, 2015 Share Posted February 3, 2015 "If you like a lot of chocolate on your biscuit join our club"....only thing is now it is half the size and you can see the biscuit through the chocolate. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 3, 2015 Author Share Posted February 3, 2015 "If you like a lot of chocolate on your biscuit join our club"....only thing is now it is half the size and you can see the biscuit through the chocolate. Yeah, didnt they used to be this size: Love that website, Quote Link to comment Share on other sites More sharing options...
SE10 Posted February 3, 2015 Share Posted February 3, 2015 Just bottled up 40 pints of lovingly crafted homebrew... only about 50p a pint Get on Amazon and buy a kit with a couple of pals -- it's good fun, and provides lots of excuses to see your buddies and drink your creations (after all, you earned it!). I've always been tempted, but is it something that can be done sensibly in a rented flat with no outside space? Quote Link to comment Share on other sites More sharing options...
SE10 Posted February 3, 2015 Share Posted February 3, 2015 Just yesterday I almost choked into my coffee when I read this article from CityAM: Apparently we aren't saving enough, and that is socially irresponsible of us. LOL, and we are spending it all on caffeinated-water! The author offers some really bats**t policy "solutions" for encouraging saving, such as penal taxes for those who can save but refuse! Enlightened, free market stuff She does nothing to address the main point that saving is mugs' game when you have ZIRP, no returns, and rampant inflation... Savers in the UK are punished already, and the indebted are rewarded... for this reason alone I welcome a bit of deflation! Taxing non consumption... wow. Surely reducing tax on savings to incentivize is, if nothing else, a hell of a lot easier to do! Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted February 3, 2015 Share Posted February 3, 2015 I've stopped drinking in the pub just because of the price of a pint. It was more my friends couldn't afford it than myself but it was getting silly. I used to love a pint too. Weatherspoons Burnham-on-sea (my local) it's £2 for a pint of local cider with around 6 to choose from. Quote Link to comment Share on other sites More sharing options...
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