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Guy on the phone at work talking to his sister, she is in arrears and is being threatened with the loss of home etc. Has lost job, unable to pay.

IT IS STARTING TO HAPPEN - in the real world prices have gone up loads, mortgage costs, fuel, taxes, bills etc etc and people can't afford to live in this country anymore while our wages inflation is kept down by fiddled CPI figures spewed out by Gordons' mates at the bank.

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This is why IRs are not neccessary to kill off HPI and start HPC.

Ignoring unemployment, which will obviously add forced sellers to the market, the incermental creep in the cost of living which is not covered by paltry wage inflation (in part due to CPI manipulation) means that people are being squeezed slowly regardless of IRs.

IRs squeeze disposable income by increasing the amount of income paid on debts that are interest sensitive.

Rising living costs not matched by wage inflation squeeze disposable income by increasing the amount of income paid on basic neccessities (Water, gas, electricity, council tax, other taxes, food, petrol etc).

What will be a nightmare for many over the next few years if this continues (false low CPI, low wage inflation, high cost of living inflation) will be that instead of inflation eroding their mortgage debt as in the past (that needs high wage inflation) they'll find that inflation in the cost of living will effectively negate all of their wage inflation and even act as a wage deflator in extreme cases.

It is different this time, people do not have high wage inflation as a light at the end of the tunnel.

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the cost of living will effectively negate all of their wage inflation and even act as a wage deflator in extreme cases.

I disagree. Not just in extreme cases, but more commonly than that.

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What will be a nightmare for many over the next few years if this continues

the nightmare scenario is alreay here. For most of us who have seen house prices escape out of reach and yet because hpi was kept out of cpi figures and cpi has been reportedly below 2% we haven't had the wage rises to keep up with house prices nor are we going to get the wage rises to catch up. But that is ultimately why house prices have to come down.

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Guy on the phone at work talking to his sister, she is in arrears and is being threatened with the loss of home etc. Has lost job, unable to pay.

IT IS STARTING TO HAPPEN - in the real world prices have gone up loads, mortgage costs, fuel, taxes, bills etc etc and people can't afford to live in this country anymore while our wages inflation is kept down by fiddled CPI figures spewed out by Gordons' mates at the bank.

Your colleague's sister, as you say, is facing repossession because she lost her job; not, as you go on to say, because of the rising cost of living. It is an isolated (albeit very sad) case; the number of people in employment is continuing to increase.

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Your colleague's sister, as you say, is facing repossession because she lost her job; not, as you go on to say, because of the rising cost of living. It is an isolated (albeit very sad) case; the number of people in employment is continuing to increase.

I think the two ARE linked.

If the rising cost of living (which you have conceded exists) was not so, people would be able to save up the three months cushion for emergencies.

This unfortunate individual would therefore have ample time to find a new job. She would also not have gotten into arrears.

I think you have over-simplified.

NDL

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I think the two ARE linked.

If the rising cost of living (which you have conceded exists) was not so, people would be able to save up the three months cushion for emergencies.

This unfortunate individual would therefore have ample time to find a new job. She would also not have gotten into arrears.

I think you have over-simplified. [NDL]

Plus her job, like many others, may have been lost due to her employer cutting staff in response to rising costs.

Edited by Jeff Ross

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the number of people in employment is continuing to increase.

How many overseas workers and recent immigrants have inflated the number of people in work?

The migrant workers currently employed on many of the farms in Cornwall (and the rest of the Country) are not here for the long haul - so I would dispute the real number of people in employment is going up - it is another of Gordons ruses to offset the sting unemployment actually rising quite quickly

CS

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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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