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dnd

Britain Has The Worst Inflation Problem In Western Europe.

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http://www.telegraph.co.uk/money/main.jhtm...C-mostviewedbox

Economists have put the chances of 6pc interest rates this year at one in three, after fresh signs emerged that the Bank of England has lost control of prices and the Organisation for Economic Co-operation and Development (OECD) said Britain has the worst inflation problem in Western Europe.
A poll of City economists carried out by Reuters showed that there is now a 75pc chance rates will increase to 5.75pc this year, and a 30pc chance they will hit 6pc. Traders are already expecting an increase to 6pc, with a further half a percentage point rise already priced in on the money markets.
George Osborne, the shadow chancellor, said: "It's official: Gordon Brown is leaving the Treasury with the public finances in the worst state in Western Europe. You have to be truly incompetent to combine the highest taxes in our history with a budget deficit higher even than Italy's."

imo rising inflation and taxation - they've been trying to hide for years - are going to bury the housing market

Edited by dnd

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so what else is likely to go down with it?

There are major imbalances in UK and globally and at some point they will start to be corrected, a process which may well be painful this time as imo the economic distortions are of major proportions i.e. unsustainable levels of debt, trade deficits, over-leveraged hedge funds, house prices well removed from average income levels etc.

None of us know how things will pan out in a major correction but I'd expect a mix of inflation and deflation - inflation in vital items which people need (such as food, energy etc) and deflation in items which people want (energy-hungry SUV's, theme parks, celebrity salaries etc). The best way to ride out such a storm would be to reduce / eliminate debt and try to position oneself on the 'needs producing' side of the economy.

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Guest Charlie The Tramp

TBH I can now see a mortgage rate of 8.5% by the middle of 2008. Once Brown has got out and installed into No 10 he won`t give a damn for all those sad fools who have overstretched themselves. When 250k lost their homes in the last correction the Government sat back and allowed it to happen. The same this time the Government will take no action to help the fools and unfortunates, and surprisingly once again the UK will survive.

It will not be different this time.

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OK, we have 2 unbiased and reliable sources of comment. George Osborne and the Telegraph. Cant see it myself.

hmm, i'm guessing you also can't see the reality of rising inflation and taxation either...

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Where's casual observer when you need him. He should be along any day now to calm us all down and reassure us that IRs HAVE peaked for the current cycle.

Move along, nothing to see here folks.

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TBH I can now see a mortgage rate of 8.5% by the middle of 2008. Once Brown has got out and installed into No 10 he won`t give a damn for all those sad fools who have overstretched themselves. When 250k lost their homes in the last correction the Government sat back and allowed it to happen. The same this time the Government will take no action to help the fools and unfortunates, and surprisingly once again the UK will survive.

It will not be different this time.

There is no tolerance for pain, we had the poll tax riots and the UK is a very different place from even back then, today things are going well but public order is pretty much on a knife edge. The Met want a fleet of water cannons.

All Labour governments end the same way, with raging inflation, unemployment, widespread discontent and trouble on the streets, I fail to see how it can be any different this time, there is far too much brewing beneath the surface. As we've seen with the public 'debate' on housing it has totally taken ministers by surprise as they are preoccupied with CO2 or whatever the latest middleclass moral panic currently is, it has taken a bunch of fascists winning council seats for them to wake up to the reality on the ground for the vast majority of the population that doesn't have £500k secreted away in an offshore hedge fund.

NuLabour will just continue to cut and privatise the public services and tax as much as possible until something breaks. Remember, if it ain't hurting it ain't working! Up the working man!

Edited by BuyingBear

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There is no tolerance for pain, we had the poll tax riots and the UK is a very different place from even back then, today things are going well but public order is pretty much on a knife edge. The Met want a fleet of water cannons.

All Labour governments end the same way, with raging inflation, unemployment, widespread discontent and trouble on the streets, I fail to see how it can be any different this time, there is far too much brewing beneath the surface. As we've seen with the public 'debate' on housing it has totally taken ministers by surprise as they are preoccupied with CO2 or whatever the latest middleclass moral panic currently is, it has taken a bunch of fascists winning council seats for them to wake up to the reality on the ground for the vast majority of the population that doesn't have £500k secreted away in an offshore hedge fund.

NuLabour will just continue to cut and privatise the public services and tax as much as possible until something breaks. Remember, if it ain't hurting it ain't working! Up the working man!

The fuel protests seem all the more strange when you look back over the last few years. Fuel prices have risen aggressively since 1998 yet it's as if the people have been kept quiet by HPI and MEW. A few hairy-arsed lorry drivers managed to achieve what 1 million anti-war protesters couldn't. To change government policy through protest. Nothing much happend after that apart from the Labour party being re-elected with the smallest turnout in history.

But look at the issues brewing up:

Iraq and high fuel prices are still an issue, but now add immigration concerns into the mix, rising interest rates and wage inflation below RPI. It seems only a matter of time before it dawns on people that the MEW party is almost over.

It's all shaping up for one hell of a rumble!

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Guest grumpy-old-man
The fuel protests seem all the more strange when you look back over the last few years. Fuel prices have risen aggressively since 1998 yet it's as if the people have been kept quiet by HPI and MEW. A few hairy-arsed lorry drivers managed to achieve what 1 million anti-war protesters couldn't. To change government policy through protest. Nothing much happend after that apart from the Labour party being re-elected with the smallest turnout in history.

But look at the issues brewing up:

Iraq and high fuel prices are still an issue, but now add immigration concerns into the mix, rising interest rates and wage inflation below RPI. It seems only a matter of time before it dawns on people that the MEW party is almost over.

It's all shaping up for one hell of a rumble!

the majority of the UK summed up in that half a sentence imo. :(

they have no opinions any more, nothing to say, they have been bought but they will be paying themselves this virtual money for many years to come (or not, as the case will be for many). :ph34r:

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