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Inflation at 1% OMG so bad for consumers , prices are rising end of the world ...

,Meanwhile housesprices in England up 9.2% year on year no doom stories ....

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Very difficult to beat RPI now if you have significant savings in cash. Even beating CPI would be a bit of a challenge. Still, it's personal inflation that really matters and I reckon it'll be overseas holidays that take the hit. In the short term this might even increase my spending in the UK.

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I imagine this will lead to a mini-boom of consumer spending this Xmas to get in early before this rises more dramatically in the new year. (if all the predictions are correct)

Which I suppose will be good for Retailers to have a happy christmas, but then will be chilling next year as all the demand will have been sucked up for a very dry January.

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23 minutes ago, hotairmail said:

 

They ought to have an inflation measure of pension costs.

Houses and pensions are the two biggest purchases in the typical familiy's life and aren't counted anywhere meaningful.

 

Fuel price/energy inflation is the measure that will loosen Carney's dentures.  The inability to incorporate energy costs into production functions is a critical point of failure for all reflationary Keynesian economic models.

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13 minutes ago, london_thirtythree said:

I imagine this will lead to a mini-boom of consumer spending this Xmas to get in early before this rises more dramatically in the new year. (if all the predictions are correct)

Will it.  It will lead to a collapse as people tighten their belts.

 

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32 minutes ago, Orsino said:

Very difficult to beat RPI now if you have significant savings in cash. Even beating CPI would be a bit of a challenge. Still, it's personal inflation that really matters and I reckon it'll be overseas holidays that take the hit. In the short term this might even increase my spending in the UK.

I suspect they know the truith about the housing bubble collapse and they are DESPERATE to keep it going.

What's the point in having money in the bank if it's getting f**k all interest...no end of idiots will be buying into their bubble now/

 

Mortgage rates/saving rates being forced artificially low.

Talk of 0.1% IRs, which means IO mortgages can be used to push prices to the moon.

What we have here is FRAUD.

Pure and simple.  The bankers must be stopped.

 

All IMHO

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46 minutes ago, TheCountOfNowhere said:

Will it.  It will lead to a collapse as people tighten their belts.

 

My guess is people will be a mixture of slow to catch on and eye christmas as the last time to buy anything they might want/need before next year's potential gloom descends.

My predictive powers have been pretty iffy in the past though!

Even with the theft of savings (of which I am going to be whacked with more than most - thanks TPTB!), can you imagine anyone buying a house in the next 6 months?  

Prices going up, fear of interest rates going up, fear about jobs et all, and above all, everyone knows we are still in bubble price land and this (unless I'm mistaken) can only really go one way from here - down.

I think you would have to be pretty brave to buy a house now, unless you get a very good deal indeed.  I know I'm not. (even if they are shaving the skin off my deposit!)

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The irony is all my life the best time to hold cash was when it paid the least in interest.Everything else seems to tank soon after that is reached.Will that prove right again?.I hope so as im moved mostly into cash now after the sterling adjusted equity spurt with just an insurance holding in gold and silver miners.I have a gut feeling next year (or late this year) will be a bloodbath,but anything could happen.The bankers really are only interested in keeping the ponzi going.It must end,but how,when?

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Guest on Jeremy Vine just now is self employed earning the same as in 1995. He refuses to employ people because of the cost and government red tape. To top it all, he used to run 7 flats but has now sold them all as he sees a crash coming.

 

Nice to have that in the ears of a few million British listeners.

:D

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28 minutes ago, Noallegiance said:

Guest on Jeremy Vine just now is self employed earning the same as in 1995. He refuses to employ people because of the cost and government red tape. To top it all, he used to run 7 flats but has now sold them all as he sees a crash coming.

 

Nice to have that in the ears of a few million British listeners.

:D

Tis b*llocks..

Unless I am missing something, there is not much red tape for employing someone.

Bit of Risk Assessments, PAYE and Payroll, but otherwise that's it in the UK as an SME, unless (touchwood) you get sued or taken to an employment tribunal.  

From my limited knowledge, this is much more difficult elsewhere in Europe and other countries - and pales in comparison to actual 'red tape' of training, mentoring and motivating your employees.

I imagine running 7 flats takes a considerable amount more of red tape than employing someone!

Ah well, nice to know that news of the impending crash is getting out there.

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If I want a return on my savings I just spend less. Easy to get 3-4% like this, tax free and requiring no effort.

I fancy a new car, but it's not going to happen. Couple of holidays? Well they'd be nice but not whilst I'm seeing no return from the bank.

Pubs that charge £4-£5 a pint? Go swivel, I have Wetherspoons within 500 yards.

Heating, stays off. Some new camera gear? Nope it can wait.

Every penny I don't spend is a victory. I have a home that's paid for an could easily get by on much much less if I had to.

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4 hours ago, Nabby81 said:

Inflation at 1% OMG so bad for consumers , prices are rising end of the world ...

,Meanwhile housesprices in England up 9.2% year on year no doom stories ....

That was my immediate thought as well.  

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2 hours ago, london_thirtythree said:

Tis b*llocks..

Unless I am missing something, there is not much red tape for employing someone.

Bit of Risk Assessments, PAYE and Payroll, but otherwise that's it in the UK as an SME, unless (touchwood) you get sued or taken to an employment tribunal.  

From my limited knowledge, this is much more difficult elsewhere in Europe and other countries - and pales in comparison to actual 'red tape' of training, mentoring and motivating your employees.

 

I imagine running 7 flats takes a considerable amount more of red tape than employing someone!

Ah well, nice to know that news of the impending crash is getting out there.

Employing people is a total headache.

Interview process - god help you if you are not a legal expert and don't take on any minority that was convinced they were the best for the job (but really weren't)

Emplyoment contract - again a total nightmare if you get any aspect wrong.

You then need - Working hours policy, equal opportunities policy, health and safety policy, COSHH policy, sickness policy etc. 

Day to day is the easy bit - just need to do paye and pension stuff.

Then you get pregnancy. My head of sales managed three children in 4 years. Always came back 'part time' but strange how all doctors appointments and pre-natal classes fell on days she was meant to work. If I was lucky I probably got 70 days work out of her in four years. The classic was she would come back from her maternity leave and then immediately claim her 4 weeks holiday entitlement (not to mention still keeping her company car all that time)

The real toughie is getting rid of someone. My sales executive was fairly inactive but I couldn't get rid of him. You can't make them redundant - otherwise you cannot get another sales executive (as it is the role you make redundant, not the person). I had another one that had reached the ripe old age of 70 but refused to retire. They just block the job, doing as little as possible.

And good luck if you have a downturn in sales. Redundancy is very expensive at the time you can least afford it. I was looking at about £15k per person to let anyone go. 

I used to have 20+ staff at any one time. I now have one (they are family). I would never employ anyone ever again. Just too much grief.

The tougher employment laws get, the more 'self employed' you will have. The balance has been shifted too far in favour of workers rights. 

 

 

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5 hours ago, Grumpysod said:

Part of me is glad the prices are going up with the exception of homes. I have had my fill of Chinese tat to last me the next decade. What is unforgivable is complete lack of regard to savers over those who took on reckless debt they cannot afford and speculated with.

Ditto, although there'll inevitably be some fallout when we're tied to (and obsessed with) a system that relies on spending money for the sake of spending money, as bonkers as that is.

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Let's hope CPI/RPI can push toward the same as HPI.

Just had a chat with a lady who moaned that it was because of Brexit and bad news, the usually celebrate HPI. Took great pleasure in pointing out that we only need another five percent inflation to match housing inflation, she wasn't amused, I was. 

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Companies that compete for overseas contracts and exporters probably can't believe their luck.  Margins up 25-30% compared to this time last year.  UK workers have suddenly become a lot cheaper to employ, and I think it's past time we got a pay rise.

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Bellway in for ‘Marmite battle’ as foreign suppliers up costs

Housebuilder Bellway is braced for its own version of the Marmite wars in the months ahead as foreign suppliers attempt to push prices higher. Around 90% of the builder’s materials are UK sourced but 10% — including white goods from Italy — are imported. That makes them vulnerable to suppliers pressing for increases to compensate for the weaker pound, as Marmite-maker Unilever tried with Tesco last week. “I’m sure we are going to have a few Unilever equivalents and we are going to have to bat them off as best we can,” Ayres said. Bellway also reported “some upward pressure” on labour costs, particularly in the London and the South-East, where trades such as ground workers, bricklayers and scaffolders are in short supply.

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4 hours ago, CunningPlan said:

Employing people is a total headache.

Interview process - god help you if you are not a legal expert and don't take on any minority that was convinced they were the best for the job (but really weren't)

Emplyoment contract - again a total nightmare if you get any aspect wrong.

You then need - Working hours policy, equal opportunities policy, health and safety policy, COSHH policy, sickness policy etc. 

Day to day is the easy bit - just need to do paye and pension stuff.

Then you get pregnancy. My head of sales managed three children in 4 years. Always came back 'part time' but strange how all doctors appointments and pre-natal classes fell on days she was meant to work. If I was lucky I probably got 70 days work out of her in four years. The classic was she would come back from her maternity leave and then immediately claim her 4 weeks holiday entitlement (not to mention still keeping her company car all that time)

The real toughie is getting rid of someone. My sales executive was fairly inactive but I couldn't get rid of him. You can't make them redundant - otherwise you cannot get another sales executive (as it is the role you make redundant, not the person). I had another one that had reached the ripe old age of 70 but refused to retire. They just block the job, doing as little as possible.

And good luck if you have a downturn in sales. Redundancy is very expensive at the time you can least afford it. I was looking at about £15k per person to let anyone go. 

I used to have 20+ staff at any one time. I now have one (they are family). I would never employ anyone ever again. Just too much grief.

The tougher employment laws get, the more 'self employed' you will have. The balance has been shifted too far in favour of workers rights. 

 

 

Ah bloody hell - don't tell me that, I've had it fairly easy so far..

I've got decent contracts and policies in place, (work with a few other companies, so could lean on their experience as I was starting out) but not got any bad experiences to toughen me up yet.. might be on here in a few years as a bitter cynic if all goes sour :-(

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As a saver I think this will have the effect of trimming personal expenditure. May be we are being a bit pessimistic on medium term inflation, I reckon low interest rates actually has some deflationary influence.

Meanwhile 1 percent is a fairly easy target to beat....I was getting something like 1.8% average weighted net last time I checked.

We may start to lose as cpi climbs but let's face it we have been ahead of both cpi and rpi now for the last decade as savers.

I get the fact assets have done even better...well not houses in the north.

 

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