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'Millions face hardship' as government support ends


Warlord
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If the virus was contained to just a few countries, they were continually printing cash to cover their obligations, and citizens lost faith in governments, sure I could see a similar trajectory.

But it doesn't seem to be the case does it? Many countries are printing, it isn't just here and the US. Most governments will choose that way out as short-term the benefits are all there.

Exchange rates could go parabolic against countries that have managed better, or alternatively harder assets which have a modicum of liquidity. I feel the latter is more likely due to the inter-connected nature of economies today.

I do think we'll have a much weaker currency in future, but the effect will not be that perceptible to Joe Public. After all, if exchange rates in EUR/USD are similar or better allowing them to take holidays, and house prices are 2% higher than they are now in 5 years, all is sweet isn't it?

I don't care about exchange rates. At all.

I care about the price of mince beef, eggs, milk cheese and yes, @Si1 sausage rolls. £15 for a sausage roll is going to be cheap, by the way. I would recommend raising your prices before everyone cottons on.

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Neither do I really, I think the point I was making was that many others have the same problems. I don't see a case where the £ plummets against many currencies, but could do against other things.

Most of Joe Public cares about prices of course. Few of Joe Public really question it though. When the price of things go up, many people assume it's because things have got more expensive instead of that the underlying currency has got weaker.

Inflation will be a solid thief over the next decade I feel, it is just a question of how much, and whether it can be controlled once it arrives. I suspect no, but digital will provide the means for escape.

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Inflation will be a solid thief over the next decade I feel, it is just a question of how much, and whether it can be controlled once it arrives. I suspect no, but digital will provide the means for escape.

Govts will be conflicted between keeping IRs low and controlling inflation. It will be a doozy and maybe even rather messy.

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