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Householder Inflation Fears Put Dampener On Chance Of Rate Cut

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Britons are bracing themselves for the highest inflation for at least six years over the coming months as soaring energy prices take their toll, a survey for the Bank of England revealed yesterday.

Not sure if this has been flagged up yet but you can read the whole piece here.

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Expectations, expectations, expectations - pure drivel when the central bank are increasing the money supply, jamming interest rates lower again to get people borrowing and spending and then totally ignoring the energy crisis that they themselves are helping to create by creating demand out of thin air for a product that has limited supply and limited means of expanding supply. Just the same as housing.

Most economic problems are a result of monetary meddling, particularly when it is ppolitically imperative to paint the economic canvas the colour of your immediate overseers.

Companies are still closing down and shiping out.

Economic event horizon is fast approaching and we will have nothing left to stave off the consequences.

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Hear hear OnlyMe, excellent post.

As per usual the exact opposite of what should be being done is being done.

As an aside, perhaps we should have a new currency based on oil. There's no more of that coming and it might stop us all pissing it away like we have been doing :)

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CaptainClamp

As an aside, perhaps we should have a new currency based on oil. There's no more of that coming and it might stop us all pissing it away like we have been doing

When all of this is done and dusted trust in the banks may be at a point where people demand such a thing or do it themseves anyway. The amount of money swilling around the commodities markets is peanuts compared to other markets, a small fractional transfer of funds to commodities fleeing monetary inflation will make recent moves look like very small beer.

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Economic event horizon is fast approaching and we will have nothing left to stave off the consequences.

Then roll on Legeslitive & Regulatory reform bill and ID cards to stop the populous revolting!

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CaptainClamp

The amount of money swilling around the commodities markets is peanuts compared to other markets, a small fractional transfer of funds to commodities fleeing monetary inflation will make recent moves look like very small beer.

Do you think Housing has/is becoming a commodity rather than an essential resource for a sustainable society? Almost everything required for a sustainable infastructure has become a commodity where shareholder greed has more influence than citizen need since the 1980's - Water,Gas,Electricity,Transport etc etc so for the gods of capitalism why not housing?

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nodumsunreader

Reckon it has become a proxy for money and the storage of wealth, but more than that is the debt that has been taken up to get it thus far - something which is totally out of sync with real wealth and something which will cause that particular market to fall out of bed. It is also being used by banks to skim off increasing amounts earnings from the population whilst the banks shun investing in the future of business and other ventures.

Like I said I think it will end very badly with investors and speculators running from one market to another causing total dislocation to the real economy in the process and all of funded by the cheap money slush fund from the central banks.

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nodumsunreader

Like I said I think it will end very badly with investors and speculators running from one market to another causing total dislocation to the real economy in the process and all of funded by the cheap money slush fund from the central banks.

When you say 'one market to another' are you including Housing as a market? If you are then I think you and I agree that housing has largely become a commodity that is being traded in the same way as oil or gold (you could compare the proportion of FTB's in the housing market in 2006 with the number of small investors in the stock/commodities market). Like most commodities, the big boys get out at the top though - that is why they are the big boys.

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When you say 'one market to another' are you including Housing as a market? If you are then I think you and I agree that housing has largely become a commodity that is being traded in the same way as oil or gold (you could compare the proportion of FTB's in the housing market in 2006 with the number of small investors in the stock/commodities market). Like most commodities, the big boys get out at the top though - that is why they are the big boys.

Yes, the difference being the housing market is creating enough debt and margin to wipe out a generation or two for their economic life if it goes wrong, never mind all the other negative effects - of destroying the real economy in the process, social problems etc etc.

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the central bank are increasing the money supply, jamming interest rates lower again to get people borrowing and spending and then totally ignoring the energy crisis that they themselves are helping to create by creating demand out of thin air for a product that has limited supply and limited means of expanding supply.

spot on

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Seems a load of rubbish to me. Household believe CPI will be 2.7% by .......

We can't take this survey seriously 90% of housholds wouldn't know what cpi is let alone be able to calculate it and make predictions of future levels. To be honest how would anybody but an expert know the level of household inflation that a increase in gas or oil would cause.

This board rightly takes the piss out of endless surveys by VI's but can't see how this survey has any credibility or accuracy either.

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This board rightly takes the piss out of endless surveys by VI's but can't see how this survey has any credibility or accuracy either.

Isn't the BoE a VI?

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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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