Wednesday, November 28, 2007

About inflation

School fee plans face toughest test

"School fees typically rise at twice the rate of inflation, increasing by a total of 41 per cent over the past five years." beg your pardon what was the rate of inflation, 2% in the BoE dreams! But no worries "Next year buy-to-let could look a steal as stretched landlords dump houses and flats and repossessions appear. Such property could provide an income stream."

Posted by confused76 @ 07:29 AM (1086 views)
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11 thoughts on “About inflation

  • When the BTL brigade start pulling out you can be sure that rents will rise. Are rising rents are inflationary? Oh yes! Lack of supply wont look too clever then.

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  • rent rises are just temporary. more than one EA told me that, here in central london, frustrated BTL sellers are pulling their flats from the sale market to rent them out and wait for some liquidity to come back. so the issue with high rents is not a demand one (people chosing to rent) but a supply one (BTLers wanting to cash in during and after the summer) but a glut of for sale properties are coming back to the rental market

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  • strugling to pay public school fees
    how terrible , i feel really sorry for those people

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  • 41% over 5 years means a per annum increase of around 7%, which would be in line with about twice RPI over the same period.

    Also as a complete aside, one of the 5th roots of 1.41 is 0.33+1.02i which means we have imaginary inflation of 2%! Don’t you just love life’s little ironies?

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  • dohousescrashinthewoods says:

    Kind of appreciate the sentiment, seanb303, but it’s either that or go to Blair’s comedy “education-education-education” schools where you will be purposefully stunted to prepare you for a life of watching the telescreen and paying interest to the banks.

    Frankly I can see why home-schooling is on the rise. (I don’t know if the pay-as-you-learn schools are much better)

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  • “Cashing in on the pound’s strength could be another earner, perhaps by buying dollars….”

    ???!?

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  • Seanb303,

    20 years ago, I would have agreed with you. Since then the politicians have spent their time introducing more and more radical changes to education that the teachers are left stunned and shell-shocked. Discipline no longer works in many schools where the kids know they can get away with spoiling the show with little recourse to punishment. When they truant, there is little incentive to encourage them back.

    Given that backdrop, why not send your children to a place where they can learn to earn a living instead of living on benefits.

    Therefore, IMHO, school fees are more valid these days.

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  • How can anyone take inflation seriously when pretty much EVERYTHING is rising in price faster than inflation. Train fares up 14% – well at least that’s in line with money supply.

    People seem to speak of inflation as a magic number that everything else must relate to, rather than teh reality that inflation is (allegedly) the measure that relates to what everything is actually doing in terms of price.

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  • alan
    if the rich were forced to send their kids to state schools
    they would very quickly improve

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  • Not as bad as Zimbabwe though…
    http://news.bbc.co.uk/1/hi/world/africa/7115651.stm

    IMF recon they could hit 100,000% in a year.
    Currently 8000%. Or 21% per day.
    In other words, a loaf od bread costs twice as much at the end of the week… if you can find one that is.

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  • sean, post 9

    how?
    more children going to state schools, how on earth would this improve standards?

    What any government should be looking at is choice in terms of education vouchers. This would help more people pay for private education, now that would improve standards.

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