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Guest KingCharles1st

Was Gordons Biggest Fault To Not Allow Rampant Inflation?

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Guest KingCharles1st

when all the while debt has been rising faster than a speeding bullet?

After today's news, and the subsequent posts on HPC, it now seems terrifyingly obvious that NOBODY has CONTROL of ANYTHING. From here on in I feel like I'm sitting inside the fuselage of a darkened plane, about to make my first parachute drop into enemy territory...

Scary stuff calls for draconian measures- bit like the French Revolution for example. I doubt if it sorted out much, but sure made a lot of people feel a whole lot better about stuff.

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when all the while debt has been rising faster than a speeding bullet?

After today's news, and the subsequent posts on HPC, it now seems terrifyingly obvious that NOBODY has CONTROL of ANYTHING. From here on in I feel like I'm sitting inside the fuselage of a darkened plane, about to make my first parachute drop into enemy territory...

Scary stuff calls for draconian measures- bit like the French Revolution for example. I doubt if it sorted out much, but sure made a lot of people feel a whole lot better about stuff.

I thought the problem was they did allow too much (monetary) inflation and it went on housing and other assets.

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when all the while debt has been rising faster than a speeding bullet?

After today's news, and the subsequent posts on HPC, it now seems terrifyingly obvious that NOBODY has CONTROL of ANYTHING. From here on in I feel like I'm sitting inside the fuselage of a darkened plane, about to make my first parachute drop into enemy territory...

Scary stuff calls for draconian measures- bit like the French Revolution for example. I doubt if it sorted out much, but sure made a lot of people feel a whole lot better about stuff.

Isn't a 35% increase in your gas bill rampant enough for you then?

EDIT to say that only rampant wage inflation is going to ease the debt burden, no thanks.

Edited by Kuma

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Guest KingCharles1st
I thought the problem was they did allow too much (monetary) inflation and it went on housing and other assets.

Sorry- yes, I meant that they could have allowed wages to explode to cover the debt- maybe, just maybe, the sunami would have eventually stopped and things would have gently reset?

Edited by KingCharles1st

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when all the while debt has been rising faster than a speeding bullet?

After today's news, and the subsequent posts on HPC, it now seems terrifyingly obvious that NOBODY has CONTROL of ANYTHING. From here on in I feel like I'm sitting inside the fuselage of a darkened plane, about to make my first parachute drop into enemy territory...

Scary stuff calls for draconian measures- bit like the French Revolution for example. I doubt if it sorted out much, but sure made a lot of people feel a whole lot better about stuff.

Yes, for a control freak, Brown has very little in his grasp.

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Sorry- yes, I meant that they could have allowed wages to explode to cover the debt- maybe, just maybe, the sunami would have eventually stopped and thinks would have gently reset?

yes they were simultaneously allowing rampant monetary inflation and suppressing wages by importing cheap labour or exporting production to place with cheap labour. It is really quite disgraceful that they have so comprehensively screwed the UK population like this and worked against their interests.

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Sorry- yes, I meant that they could have allowed wages to explode to cover the debt- maybe, just maybe, the sunami would have eventually stopped and things would have gently reset?

May happen yet, however if you let it 'explode' then you are toying with hyperinflation. Anyway, interest rates would have to soar in an attempt to control the inflation and you'd get any business on fixed outputs and variable inputs go to the wall.

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We did have rampant inflation it was just hidden as we where able to buy in loads of cheap Chinese goods on Chinese debt. Now those goods are drying up we have true inflation merging. Mervyn King knew this but chose to ignore it, the twit should resign for being an incompetent negligent stunt.

http://business.timesonline.co.uk/tol/busi...ticle675905.ece

June 18, 2006

China’s not yet exporting inflation

David Smith

I WAS playing badminton in the garden last weekend, after a fashion, using rackets and a shuttlecock that were so cheap they were free. The garden games set, which included a frisbee and ball, was a gift from one of our well-known retailers — okay it was Marks & Spencer — for spending a modest amount on its delicatessen range. The set was, of course, made in China.

We have grown accustomed to cheap imports from China. They have been responsible for the fact that, for many goods, the experience over many years has been one of falling prices. One of my favourite statistics has been that the average price of goods in the shops is no higher now than in 1997. In fact the news is better than that — goods prices are, on average, more than 10% lower than they were, largely thanks to the China effect.

Without it, keeping inflation down in recent years would have been much harder. It would have required significantly higher interest rates and meant much slower economic growth. China has played a big part in Britain’s successful run of non-inflationary growth.

Is this now coming to an end? That was the spectre raised by Mervyn King in his important speech last week. Warning of turbulent times ahead, the Bank of England governor said the following: “Even in China, with its growing manufacturing base and large pool of labour, some indicators are showing upward pressures on export prices. And in turn that is raising our import prices, over and above the increases resulting from higher energy prices.”

If that is true it has momentous implications, not just for inflation and interest rates in Britain, but also more widely. If even China with its huge labour-cost advantages can’t keep export prices down, the world could be on the cusp of a big inflation. As for China, perhaps its competitive advantage will begin to diminish faster than experts thought, raising doubts about its long-term ability to conquer the world.

Two things are clearly happening. One is that Britain’s import prices are rising, and were up 5.9% in the February-April period compared with a year earlier. A lot of that is due to oil but, even stripping out oil and so-called erratics, the rise was 3.2%.

It is also clear that there is upward pressure on wages in the big Chinese cities, notably Shanghai and Beijing. Inflation has been low in China but is creeping up.

Edited by interestrateripoff

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  • 399 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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