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gruffydd

Boe Seriously Worried About Public's Inflation Expectations

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http://business.timesonline.co.uk/article/...2093829,00.html

“Quite small changes in how expectations are formed can have large impacts, and that is important for central bankers,” Mr King told the conference.

Today's poll findings and the Governor’s emphasis on the importance of inflation expectations to the economy are likely to further undermine already fading hopes for a further cut in the cost of borrowing this year. The jump in inflation expectations will trigger fears at the MPC that the impact of rising energy costs is eroding its inflation-fighting credibility among the public.

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The jump in inflation expectations will trigger fears at the MPC that the impact of rising energy costs is eroding its inflation-fighting credibility among the public.

What credibility?

Anyboody who has run a business has seen the cost of land, rentals, rates, power, in fact the whole damn shooting match hurtling higher. Hence the high level of jobs losses above and beyond those that would have been ousted by low wages alone.

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"This is the highest result in the six-year history of the NOP survey and far higher than the true figure of just 1.9 per cent in January — a level expected to be unchanged in the latest data tomorrow"

The true figure is completely open to government control &, like every other significant statistic, has been manipulated - joe public never believed the rubbishy spin about the "core" rate, and people's latest inflation expectations are as a direct consequence of their own personal experience.

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Its not that the british public are f*ckin morons (open to debate) its more that they are slow, bunch of f*cktards that need to be completly soaked to realise its raining.

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My partner and I have a joint account into which we each pay some money every month. This covers gas, electricity, water, council tax, TV license, phone bill and food. Three years ago there was regularly enough left at the end of each month to go out for a meal too. Today it's verging on being overdrawn at the end of each month and many of the items we buy are cheap 'own brand' things where we used to buy quality labels. £300 used to be enough... We now put in £434! That's an increase of 44.6% over three years. 1.9% inflation my ****!

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Its not that the british public are f*ckin morons (open to debate) its more that they are slow, bunch of f*cktards that need to be completly soaked to realise its raining.

Succinctly put!!!

Could not have ranted better myself :)

TB

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Guest Riser
“Quite small changes in how expectations are formed can have large impacts, and that is important for central bankers,” Mr King told the conference.

And we all know why its important to central bankers don't we ?

Now the British public have seen through the CPI bullsh!t they have been force fed for years by Brown and the BOE they will start to demand higher wages to offset the true increases in the cost of living. Once wages start rising the BOE will be forced to rise interest rate and the whole stack of cards will come tumbling down.

Public’s view of inflation poses threat for rates
All of us must choose to believe in the miracle or else rates will have to go up. Edited by Riser

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Its not that the british public are f*ckin morons (open to debate) its more that they are slow, bunch of f*cktards that need to be completly soaked to realise its raining.

They can't be that daft, most of them are substantially wealthier than us because they bought a while ago. Or is this too simple?

<_<

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Now the British public have seen through the CPI bullsh!t they have been force fed for years by Brown and the BOE they will start to demand higher wages to offset the true increases in the cost of living.

I've been pushing my employer for a realistic pay rise for a couple of years now. I always get the same lame excuses back though and a shitty £500 increment each January.

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Caught some of the bbc breakfast business thingy this morning and they were reading out a question asking some expert or another if changing the inflation shopping basket is just a way of fiddling inflation figures. Can't remember the reply (too shocked at the question actually being asked) but it certainly didn't sound like a complete denial that that is the case.

Are the BBC just slipping in the odd bearish thing now and again to keep us lot happy or are they slowly preparing us for bad news?

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So lets get this right shall we.

The BOE are more worried about inflation expectations than actual inflation? Which means that they haven;t been targetting inflation all along, but keeping an eye on inflation expectations a nd wage demands.

The BOE don't really care about inflation as long as it doesn't affect wages? How stupid is that, maybe they don't pay any rent, maybe all their services come out of the taxpayer's pocket so they don't notice those either.

I wonder if the BOE worry about the fact that hidden inflation one day may produce a situation where countless companies and people are penniless after their liabilties, nope doesn't matter as long as the perception of inflation is low and wages don't follow.

If the above really is a true reflection of their stance then there are some seriously deluded people running monetary policy.

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And we all know why its important to central bankers don't we ?

Now the British public have seen through the CPI bullsh!t they have been force fed for years by Brown and the BOE they will start to demand higher wages to offset the true increases in the cost of living. Once wages start rising the BOE will be forced to rise interest rate and the whole stack of cards will come tumbling down.

All of us must choose to believe in the miracle or else rates will have to go up.

But in an environment where unemployment is on the increase there isn't much scope for upward pressure on wages in many companies.

Couple this with the fact that most employees are not unionised anymore and they generally accept their CPI based (or therabouts) pay rises each year.

I think this cycle of filthy lies will only be broken if the general public becomes educated about inflation and what it means to them (other than higher house prices).

I think there is a good reason that they don't teach basic economics in school.... they don't want the general public to realise the laughably simple tactics they use to rip them off.

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There was an item on the bbc breakfast today about the inflation basket - trying to con us into believeing its about "long term spending" not day to day spending.

I didn't catch most of the article but got the impression it was "fluff" to try and convince the general public that inflation isn't huge.

I noted in Cosmo last night that they reckon 44% of its readers didnt get a raise last year.

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Guest Riser

But in an environment where unemployment is on the increase there isn't much scope for upward pressure on wages in many companies.

Couple this with the fact that most employees are not unionised anymore and they generally accept their CPI based (or therabouts) pay rises each year.

I think this cycle of filthy lies will only be broken if the general public becomes educated about inflation and what it means to them (other than higher house prices).

I think there is a good reason that they don't teach basic economics in school.... they don't want the general public to realise the laughably simple tactics they use to rip them off.

Well maybe its time for the Unions to dump their fat cat bosses who have been bought out by Nu Labour and show potential members that they can control of their "Left Brother" tendancies, in sufficient numbers they could put forward stronger wage demands and at least reclaim some dignity.

Labour used to be funded by the unions, you only have to look at the long list of "Business leaders" :lol::lol: who have lent the party millions to see who is running Nu Labour now.

I can't stand Clair Short myself but she does have a point:

BBC - How bad is loans row for Blair?

"What we're getting is a bubble of these clever people who've captured the state, don't need a party, don't need any members, don't have turbulent people having opinions, who then get money from rich people and run our state without consulting anyone else," said Ms Short.
Edited by Riser

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The BOE don't really care about inflation as long as it doesn't affect wages? How stupid is that, maybe they don't pay any rent, maybe all their services come out of the taxpayer's pocket so they don't notice those either.

The BoE know that wage inflation is the one kind of inflation that they can't hide.

Also, wage inflation is the end of the inflation cycle (input inflation raises prices, price inflation leads to wage inflation), so when wages start inflating it's way too late to do anything to stop it.

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And we all know why its important to central bankers don't we ?

Now the British public have seen through the CPI bullsh!t they have been force fed for years by Brown and the BOE they will start to demand higher wages to offset the true increases in the cost of living. Once wages start rising the BOE will be forced to rise interest rate and the whole stack of cards will come tumbling down.

All of us must choose to believe in the miracle or else rates will have to go up.

I don't mean to be rude but this is b0ll0cks. The market decides wages not individuals' expectation of inflation. (At least not without powerful corrupt grasping lobbyist infiltrated unions)

Are you seriously telling me that a guy can go to his boss and demand a pay rise because he thinks inflation is higher than anticipated? The boss can just recite back exactly the same reasons for being "unable to accomodate his demand at this time".

Get real!

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The market decides wages not individuals' expectation of inflation.

Right, because employees aren't part of the market, are they?

Back in reality, if employees are seeing their standard of living drop every year, they start demanding more money. If their employers don't pay more, then they start looking for work elsewhere. They may not find a better paying job, but they wouldn't even be looking for one if inflation wasn't outpacing their wage rises.

The boss can just recite back exactly the same reasons for being "unable to accomodate his demand at this time".

And the employee, if they're in an industry which actually has pricing power, can say 'stuff your job, I've been offered 10% more money at Bloggs Ltd'.

How many people exactly do you think are going to sit back and watch their standard of living drop every year without doing something about it? They might have ignored that drop when the price of their house was going up by 40,000 pounds a year, but now house prices are static at best, they actually need to earn money to pay the bills.

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my brother was a security guard working 60 hours for a take home pay of £870 pcm.

his living standards drew back so far in so short a period its now better for him not to work and claim unemployment and housing benefit. no poll take and £600 of dental work for free.

at one time, a basic guard could have bought a local terrace and had 2 kids maybe.

all he got was into debt and the same poxy flat he now gets for free.

in true realisty - his job simply inflated away.

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Right, because employees aren't part of the market, are they?

Back in reality, if employees are seeing their standard of living drop every year, they start demanding more money. If their employers don't pay more, then they start looking for work elsewhere. They may not find a better paying job, but they wouldn't even be looking for one if inflation wasn't outpacing their wage rises.

And the employee, if they're in an industry which actually has pricing power, can say 'stuff your job, I've been offered 10% more money at Bloggs Ltd'.

How many people exactly do you think are going to sit back and watch their standard of living drop every year without doing something about it? They might have ignored that drop when the price of their house was going up by 40,000 pounds a year, but now house prices are static at best, they actually need to earn money to pay the bills.

Collectively employees are half the market you are correct. What I mean is this. On an individual basis, employers are not in a posiiton to make demands. Things don't happen to everyone at the same time which is exactly what would need to happen.

Remember "When they came for the burger flippers I said nothing, for I was not a burger flipper..."

Without bullying from corrupt state empowered unions, wage demands are now set by the market, and not by obscure communist principles.

Edited by Columbo

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I don't mean to be rude but this is b0ll0cks. The market decides wages not individuals' expectation of inflation. (At least not without powerful corrupt grasping lobbyist infiltrated unions)

Are you seriously telling me that a guy can go to his boss and demand a pay rise because he thinks inflation is higher than anticipated? The boss can just recite back exactly the same reasons for being "unable to accomodate his demand at this time".

Get real!

This is correct.

In economic terms the enterprise or company 'rents' the worker and the rate is set in relation to the supply in the labour pool, and the enterprises profits.

If there is an vastly expanded labour pool, via subsistution with a visa worker, mass immigration etc.. then the workers income drops and profits increase.

With an inflation measure which removes drops in the real standards of living and purchasing power of wages, a form of slave/surf class develops.

There is no limit to which living standards can drop under the onslaught of mass immigration, as seen in the 19th century - out of which the labour movement was formed.

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This is correct.

In economic terms the enterprise or company 'rents' the worker and the rate is set in relation to the supply in the labour pool, and the enterprises profits.

If there is an vastly expanded labour pool, via subsistution with a visa worker, mass immigration etc.. then the workers income drops and profits increase.

With an inflation measure which removes drops in the real standards of living and purchasing power of wages, a form of slave/surf class develops.

There is no limit to which living standards can drop under the onslaught of mass immigration, as seen in the 19th century - out of which the labour movement was formed.

That's some heavy sh1t man.

So in a high immigration lagging market with falling profits the worker gets really kicked in the proverbials, if the politicians direct policy.

What policies should we look for or have you just stated them above?

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With an inflation measure which removes drops in the real standards of living and purchasing power of wages, a form of slave/surf class develops.

<PEDANT MODE>

I can just see those slaves on their surf boards now, riding the big white waves. :lol:

</PEDANT MODE>

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With an inflation measure which removes drops in the real standards of living and purchasing power of wages, a form of slave/surf class develops.

Its already happening they are called today's young. Fortunately, without the powers to lock up those that question the system or restrictions on those wishing to leave the country the Government will be unable to maintain the status quo and the perverse distortions in the present economy will be corrected in time.

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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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