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OzzMosiz

Government Vs Ftbers

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Well to be honest, the government and the BoE have really shafted FTBers. They are holding onto this bubble with all their might. Last few months I've seen little movement in prices in my area (although a few months before they dropped considerably - this maybe SIPPS effect which has held prices in the last few months - this should now weaken the hold - I hope).

Edited by OzzMosiz

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The BoE is protecting the market.

Inflation is above their upper limit of 2% yet they are reluctant to raise the base rate.

This is unfair and goes against principles of free trade.

They do have to protect UK economic inerests and a lot of people are home owners, but they are blowing hot air into a bubble by allowing higher inflation.

The BoE is running a big risk, inflation is already higher than GDP growth.

1.75% GDP growth - 2.1% inflation = 0.35% real term economic errosion

So in real terms the UK economy has begun shrinking, how long can the tresury sustain repayments on defeicit levels that approach £10bil when the economy and thus Gordon Browns tax reciepts are losing purchasing power? On top of this North Sea Oil production (the UK's cash cow) is shrinking annually by 7%.

Gordon will raise taxes in April and everyone should expect to be in the firing line. Especially those who have made a disproportionatly large amount of money recently.

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The BoE is protecting the market.

Inflation is above their upper limit of 2% yet they are reluctant to raise the base rate.

This is unfair and goes against principles of free trade.

They do have to protect UK economic inerests and a lot of people are home owners, but they are blowing hot air into a bubble by allowing higher inflation.

The BoE is running a big risk, inflation is already higher than GDP growth.

1.75% GDP growth - 2.1% inflation = 0.35% real term economic errosion

So in real terms the UK economy has begun shrinking, how long can the tresury sustain repayments on defeicit levels that approach £10bil when the economy and thus Gordon Browns tax reciepts are losing purchasing power? On top of this North Sea Oil production (the UK's cash cow) is shrinking annually by 7%.

Gordon will raise taxes in April and everyone should expect to be in the firing line. Especially those who have made a disproportionatly large amount of money recently.

the average home has increased by 170% in this boom.. taxes have rocketed..

Both were removed from inflation FIGURES..

so what has the true "effective inflation" been in the labour terms.

Fighting inflation is not a bad idea.

But when you first cynically define inflation to suit your own agenda..

then.. you are really just supporting lies..

Tellys in from china are so damn cheap.. so are the clothes..

Send our money there.. and hell look... inflation is low..

Oh my god.. we have entrusted people to look after the country for us and our children..

and they think lying that they are doing their job is the same as actually doing it..

Personally.. well.. I will swing that idea past my boss.

as soon as I stop surfing this site :)

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The BoE is running a big risk, inflation is already higher than GDP growth.

1.75% GDP growth - 2.1% inflation = 0.35% real term economic errosion

GDP growth is normally measured in real terms, not nominal. So your equation should be:

3.85% nominal GDP growth - 2.1% inflation = 1.75% real (and reported) GDP growth

The BoE is protecting the market.

Inflation is above their upper limit of 2% yet they are reluctant to raise the base rate.

This is unfair and goes against principles of free trade.

Were you calling for interest rate cuts back in September 2004 when CPI inflation was 1.1%, and at serious risk of actually breaching the real target of 1%-3% CPI inflation? If not, then why not -- that was considerably more unfair than refusing to increase rates with CPI at 2.1% and falling.

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3.85% nominal GDP growth - 2.1% inflation = 1.75% real (and reported) GDP growth

Of course real inflation is well above 2.1%: the British economy may have been shrinking for years in real terms... almost certainly has if you leave out the growth in worthless government jobs.

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http://portal.telegraph.co.uk/property/mai...14/ixpmain.html

Ross Clark say's

"Within 24 hours of last week's pre-Budget report, I received a call from a developer's public relations agent wanting to reassure me that Gordon Brown's U-turn on investing property through a self-invested pension plan (Sipp) would have no negative effect on the property market."

Gordon using more taxpayers money to save face!

"Gordon Brown is pressing ahead with shared ownership in spite of the fact that it will cause a huge drain on the public purse. The Government is proposing that first time buyers be encouraged to purchase 75 per cent of a property, 12.5 per cent being bought by a building society and the final 12.5 per cent by the Government. When the property is sold, all sides take equivalent shares of the proceeds.

The Government has agreed that its own share will be the first to go should the property market fall. In effect taxpayers will be taking a speculative punt on the market."

Should we be Extremely angry about this blatent abuse?

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GDP growth is normally measured in real terms, not nominal. So your equation should be:

3.85% nominal GDP growth - 2.1% inflation = 1.75% real (and reported) GDP growth

Were you calling for interest rate cuts back in September 2004 when CPI inflation was 1.1%, and at serious risk of actually breaching the real target of 1%-3% CPI inflation? If not, then why not -- that was considerably more unfair than refusing to increase rates with CPI at 2.1% and falling.

To be brutally honest in Sept 04 I had just finished uni, and was looking more for work than housing, inflation was not something I spent time thinking about. It's only since investing portions of my salary (this year) I started looking into it at all.

I was trying to use the figures to show how the BoE is reluctant to raise rates and I believe the motive is at least some part to protecting mortgage borrowers.

After reading the source for my GDP equation I will have to eat humble pie

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http://portal.telegraph.co.uk/property/mai...14/ixpmain.html

Ross Clark say's

Gordon using more taxpayers money to save face!

Should we be Extremely angry about this blatent abuse?

Yes we bloody should.. prices are coming down.. nice to know I shall cover that personally..

Nuts.

Oh well.. havent most ot the initiative share things remained unsold so far..

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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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