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right_freds_dead

Wheres My 40k

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i was posting along today when ive hit a dire thought.

since 2001 ive managed to save 40k.

i went to buy a house which was 75k in 2001 and its now £140k. its the same house.

can someone tell me what happens to my 40ks worth of hard work ?

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that is wholly true.

but i was told by this government that inflation was tiny and under control ?

If Brown told you to jump off a cliff would you?

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Goverment tells many lies, one which is CPI.

Now buy a house ASAP, get a 15 year fixed mortgage, kick back and enjoy. See how your debt will be eroded by infaltion and you will practically get the house for free. This is a goverment that awards debtors and penalises savers. Can't you see how these 20 somethings are financing their world wide travel trips on credit cards and let alone paying those debts back, they can't even attempt to stop them from growing. Whoose purse is that coming from? Yours.

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Goverment tells many lies, one which is CPI.

Now buy a house ASAP, get a 15 year fixed mortgage, kick back and enjoy. See how your debt will be eroded by infaltion and you will practically get the house for free. This is a goverment that awards debtors and penalises savers. Can't you see how these 20 somethings are financing their world wide travel trips on credit cards and let alone paying those debts back, they can't even attempt to stop them from growing. Whoose purse is that coming from? Yours.

WHAT !!!

so these modern binge drinking harry hill shirt wearing gen xers are consuming my savings like moths on a boater hat ?

what should i do with the moolah to prevent this unenjoyable erosion.?

[cue gold ramping thread]

should i really coat it in gold dust ?

If Brown told you to jump off a cliff would you?

yes because it better to work for nothing but self esteem than do nothing but laze about and enjoy yourself on benefits. (according to casual observer that is)

Edited by right_freds_dead

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You have two options.

1. Buy gold

or

2. Convert your savings into a currency of which the central banks are serious about inflation. e.g. Euro.

Option 2 is in my opinion much better.

Option 1 is open to speculation of gold price.

We live in times when productive support the unproductive.

Debtors steal from savers.

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thanks. i will look into that. i dont really trust the uk government not to totally fleece that moeny away to nothing over the next 3 years trying to prop up this lending boom. the germans seem much more sensible.

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You have two options.

1. Buy gold

or

2. Convert your savings into a currency of which the central banks are serious about inflation. e.g. Euro.

Option 2 is in my opinion much better.

Option 1 is open to speculation of gold price.

We live in times when productive support the unproductive.

Debtors steal from savers.

Do you think the Swiss Franc is a sensible currency to hold? I have a Euro account but am concerned that the ECB has not really been tested yet.

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Do you think the Swiss Franc is a sensible currency to hold? I have a Euro account but am concerned that the ECB has not really been tested yet.

Maybe but Euro is a fine judgement. Euro countries are net trade positive. They are robust and as such the any currency backed by a strong economy is a sure bet.

So if you don't want to buy a house and you have savings, go to your local bank, open a euros account and wait for as long as you like to purchase a house. By all this reckless lending, will come huge defaults and hence the devaluation of the pound. Then convert your euros into pounds again and easily buy a house.

Simple isn't it.

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Goverment tells many lies, one which is CPI.

Now buy a house ASAP, get a 15 year fixed mortgage, kick back and enjoy. See how your debt will be eroded by infaltion and you will practically get the house for free. This is a goverment that awards debtors and penalises savers. Can't you see how these 20 somethings are financing their world wide travel trips on credit cards and let alone paying those debts back, they can't even attempt to stop them from growing. Whoose purse is that coming from? Yours.

It's coming from their own purses next year and the year after. I think this inflationary line peddled by some on here is a little overdone. House prices are about to take a tumble come what may. Are we then saying that inflation ought to be -10%?

Edited by FollowTheBear

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I think this inflationary line peddled by some on here is a little overdone.

How so?

When you see resturant bills rising you know it's general inflation.

Inflation cycle is like this: First house prices ---> Service costs -----> wage rises.

Next in line is wage rises.

Basically when you see service costs going up the argument that house prices are over valued becomes weaker and weaker.

By service costs I mean things like: Getting your car fixed, car servicing, council tax, transportation costs (coach tickets to Heathrow) etc.

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i was posting along today when ive hit a dire thought.

since 2001 ive managed to save 40k.

i went to buy a house which was 75k in 2001 and its now £140k. its the same house.

can someone tell me what happens to my 40ks worth of hard work ?

You lost it in a poor investment decision?

yes because it better to work for nothing but self esteem than do nothing but laze about and enjoy yourself on benefits. (according to casual observer that is)

According to most people, I reckon. No-one likes benefit scroungers when they are able to work, because they have to pay for them.

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We live in times when productive support the unproductive.

Debtors steal from savers.

I think this sums up Labour quite nicely. Lots of lazy civil servants sitting around doing bog all and being paid for by those who really work for a living. And that doesn't even start to account for all those long-term sickies (a sizeable number of whom live in unemployment blackspots coincidentally)

My underlying view increasingly becomes one of get rid of the government we have now and reap the benefits.

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How so?

When you see resturant bills rising you know it's general inflation.

Inflation cycle is like this: First house prices ---> Service costs -----> wage rises.

Next in line is wage rises.

Basically when you see service costs going up the argument that house prices are over valued becomes weaker and weaker.

By service costs I mean things like: Getting your car fixed, car servicing, council tax, transportation costs (coach tickets to Heathrow) etc.

I don't understand - as far as I'm aware all the things you mention are included in the governments inflation statistics. Therefore if these go up so do interest rates.

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2. Convert your savings into a currency of which the central banks are serious about inflation. e.g. Euro.

Interesting, why do you think the ECB is more serious about inflation?

frugalista

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i was posting along today when ive hit a dire thought.

since 2001 ive managed to save 40k.

i went to buy a house which was 75k in 2001 and its now £140k. its the same house.

can someone tell me what happens to my 40ks worth of hard work ?

well done for saving 40k - no mean feat!

I'm surprised you didn't realise that house prices generally rise?

houses are like all commodities, they have a market price at a particular time

who knows why someone will pay hundreds of thousands for a painting (I wouldn't) but if you bought it for £100,000 in 2001 and someone now wants to pay £500,000 for the privilege of owning it would you say - hey, no bud, I only paid £100k for it so you shall have it for the same, after all, it's the same painting.

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well done for saving 40k - no mean feat!

I'm surprised you didn't realise that house prices generally rise?

houses are like all commodities, they have a market price at a particular time

who knows why someone will pay hundreds of thousands for a painting (I wouldn't) but if you bought it for £100,000 in 2001 and someone now wants to pay £500,000 for the privilege of owning it would you say - hey, no bud, I only paid £100k for it so you shall have it for the same, after all, it's the same painting.

thats all very well for paintings, but your local ambulance crew cant live in a john wheeler abstract landscape.

these are homes, not investment playthings.

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O former soviet leader.

I read your posts. It seems that your basic point was that the euro money supply rate is 8% and everyone in Euroland is worried but the sterling money supply rate is 10-12% and nobody in the UK cares. What is the money supply rate, the rate at which new currency units are being created? What is the relationship between the money supply and inflation? If the money supply rate is 10% why isn't inflation 10%? Where does one find these figures?

Does this mean that the ECB is a properly independent inflation-targeting central bank, but the BoE is an ad-hoc bunch of interest group representatives primarily concerned with next weeks' headlines?

frugalista

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  • 338 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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