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gruffydd

Fed Move Doesn't Erase Market Risk

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Everyone seems to be saying IR cuts are just around the corner. Will inflation not become an issue if they cut IR's. Is an uptick in inflation a major problem - will it enable the indebted to inflate away their debt, or will wage inflation stay v low due to migration?

Edited by gruffydd

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Everyone seems to be saying IR cuts are just around the corner. Will inflation not become an issue if they cut IR's. Is an uptick in inflation a major problem - will it enable the indebted to inflate away their debt, or will wage inflation stay v low due to migration?

If our low paid Eastern European workers start to return home, we might see wage inflation occur again.

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You will not see wage inflation in the West for a long, long time.

Instead you will see unemployment.

It is a global economy now. Why pay western workers more, when you can simply sack them and move the operation East?

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It's always troubled me how companies can outsource/lower everyones wages and expect sales to continually grow. Only means of payment becomes debt-future expected earnings. Surely there comes a debt ceiling and a recession is inevitable until wages/productivity rise again. Seems to me that they are always killing the goose.

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It's always troubled me how companies can outsource/lower everyones wages and expect sales to continually grow. Only means of payment becomes debt-future expected earnings. Surely there comes a debt ceiling and a recession is inevitable until wages/productivity rise again. Seems to me that they are always killing the goose.

Were you hiding under my chair at lunch today? :ph34r: I almost used the exact same words! :blink:

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Were you hiding under my chair at lunch today? :ph34r: I almost used the exact same words! :blink:

If you tell me that what I'm about to say next is what you were thinking then I'm going to seriously 'wig-out'

We need to stop whizzing finance about the globe and taking a cut each time. We need to start making good quality things that people need,and we need to reward inovation,skill and talent. A return to when 'quality goods' had 'made in England' stampted on them and did'n't end up in landfill within six months. Whe need to ensure men can clothe, house and feed their families without resorting to debt. And we need it yesterday.

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If you tell me that what I'm about to say next is what you were thinking then I'm going to seriously 'wig-out'

We need to stop whizzing finance about the globe and taking a cut each time. We need to start making good quality things that people need,and we need to reward inovation,skill and talent. A return to when 'quality goods' had 'made in England' stampted on them and did'n't end up in landfill within six months. Whe need to ensure men can clothe, house and feed their families without resorting to debt. And we need it yesterday.

:lol: It was my mum that made that "made in England" comment!!! But I had just been complaining about supermarkets just being parasitic middlemen that were destroying british agriculture and textile industry (gone already) and buying cheap low quality stuff from overseas. On the landfill question, my mum was saying that some new-build flats in Glasgow she heard about were expected to be demolish in about 30 years...not surprising when you hear that modern building materials only have a design life of about 30 years. Lets get back to building things that last - we are plundering the world just to keep the make-sell-discard cycle going. Its not sustainable!

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Seriously, I get really worried about all of this. We are burning through oil at a terrific rate, cheap plastic tat, disposable whatever, 4x4's with huge petrol consumption. All ending up in the atmosphere or landfill, with a token gesture in recycling. And yet the poor worker is getting poorer and poorer either in terms of the amount of debt he's in or a poor quality of life. Can't afford housing in the west and twelve hour slave pits in the east.

Capitalism in the extreme. Not that I think communism is any solution either. Something has to radically change.

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I'm right with you on this one. Unfortunately, while recognising and identifying the problem is relatively easy (although most people haven't even realised there is a problem in the first place), working out how to remedy it is a real brain*&^k. My own contribution has been to reduce my driving from 40000 miles per year to zero. Seriously! I haven't driven a car for months. But ultimately it is relatively meaningless when China is building a new coal fired power station every week.

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:lol: It was my mum that made that "made in England" comment!!! But I had just been complaining about supermarkets just being parasitic middlemen that were destroying british agriculture and textile industry (gone already) and buying cheap low quality stuff from overseas. On the landfill question, my mum was saying that some new-build flats in Glasgow she heard about were expected to be demolish in about 30 years...not surprising when you hear that modern building materials only have a design life of about 30 years. Lets get back to building things that last - we are plundering the world just to keep the make-sell-discard cycle going. Its not sustainable!

O.K. 'serious wig-out event' caution advised. Husband and children hiding behind the sofa. :D

Yes I agree our small contribution won't make much difference. Hard to know how all this will pan out, but I think the musical chairs of sending jobs overseas to make rubbish to cart halfway back round the word has to end sometime. Maybe this is it. Maybe when the credit stops the buying will stop, then the manufacturing will stop and tptb will take a fresh look at where we're going.

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I'm right with you on this one. Unfortunately, while recognising and identifying the problem is relatively easy (although most people haven't even realised there is a problem in the first place), working out how to remedy it is a real brain*&^k. My own contribution has been to reduce my driving from 40000 miles per year to zero. Seriously! I haven't driven a car for months. But ultimately it is relatively meaningless when China is building a new coal fired power station every week.

Its widely considered that this figure is nearer two per week nowadays.

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I'm right with you on this one. Unfortunately, while recognising and identifying the problem is relatively easy (although most people haven't even realised there is a problem in the first place), working out how to remedy it is a real brain*&^k. My own contribution has been to reduce my driving from 40000 miles per year to zero. Seriously! I haven't driven a car for months. But ultimately it is relatively meaningless when China is building a new coal fired power station every week.

Rowbotham's excellent book "The Grip of Death" has convinced me that monetary reform would be a good place to start in remedying it: Many of our social and environmental ills can be seen as being a direct result of a debt-based money system.

It will never happen though, monetary reform is too esoteric for the average Joe to take an interest in, regardless of the huge benefits it would bring to all except the banks.

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