Tuesday, March 24, 2009

CPI: +3.2 YoY, RPI +0.0 YoY

Consumer price indices February 2009

In the year to February, the consumer prices index (CPI) rose by 3.2 per cent, up from 3.0 per cent in January. In the year to February, the all items retail prices index (RPI) was unchanged, that is, an annual rate of 0.0 per cent, down from 0.1 per cent in January. Over the same period, the all items RPI excluding mortgage interest payments index (RPIX) rose by 2.5 per cent, up from 2.4 per cent in January.

Posted by 51ck-6-51x @ 09:32 AM (5327 views)
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73 thoughts on “CPI: +3.2 YoY, RPI +0.0 YoY

  • little professor says:

    O PWNED!!!

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  • little professor says:

    So much for fscking deflation. I thought CPI would hold up, but wasn’t expecting it to actually rise. Mervyn now has to write another letter to the chancellor explaining why inflation is still more than 1% above the target range.

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  • little professor says:

    The largest upward pressure on the CPI annual rate came from food and non-alcoholic beverages. There were further large upward pressures from:recreation and culture; transport costs, mainly due to the price of fuels and lubricants which rose by more than a year ago. The average price of petrol rose by 3.2 pence per litre between January and February this year; furniture, household equipment and maintenance with upward effects from major appliances and non-durable household goods; clothing and footwear where prices rose by more than a year ago.

    The only large downward pressure on the CPI annual rate came from housing and household services. This was due to gas and electricity bills which were unchanged this year but rose a year ago when many suppliers increased their rates.

    Retail Prices Index (RPI) inflation slowed to 0.0 per cent in February, down from 0.1 per cent in January. There was a large downward pressure from housing with the main effect coming from mortgage interest payments which are excluded from the CPI.

    RPIX inflation – the all items RPI excluding mortgage interest payments – was 2.5 per cent in February, up from 2.4 per cent in January.

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  • We’ve obviously past the bottom ;p

    Economic numbers coming out this morning are all better than expected:

    Germany: Purchasing Manager Index Services (Mar): 41.7 (expected: 41.2)
    European Monetary Union: Purchasing Manager Index Manufacturing (Feb): 34.0 (expected: 33.5)
    European Monetary Union: Purchasing Manager Index Services (Mar): 40. (expected: 39.2)

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  • little professor says:

    It’s OK, clothing is cheaper.

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  • Fuel should have been coming down for 5 months, but has not – it’s up 22.3% on last year. Where is the competition in the market? If this were to have adjusted in an efficient manner RPI would be very negative indeed.

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  • The BBC has spent a lot of time this morning talking about deflation starting to happen as though it were a certainty.

    – bit embarrassing for them, these stats..

    RPI is misleading at the moment, because it is heavily influenced by housing. CPI reflects inflation as seen in the shops, and that is high – and rising.

    Note the price of clothing and footwear in the graph above. This is almost all imported, and paid for in dollars. Prices in that category are about to swing sharply to the upside.

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  • I think the government feels unable to defend their deflation stance, because they can’t broadcast the fact that 3.5 million unemployed will have a serious effect on demand, wages and prices. They can’t say “I assure you we will be right about deflation because we are going to put another 1.5 million of you out of work”

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  • Better stop the press and start up the shredder Mervyn!

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  • charlie brooker says:

    Is it Inflation? Is it Deflation? No, its Nonflation!

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  • sold 2 rent 1 says:

    Looks like the Armstrong high on 19 April will signal the turn from deflation to inflation

    The 10 year US T-bill yield has broken down to attack the low made in December 2008
    Remember this is a yield trend that has been falling since 1981.

    After this high we will have to sat goodbye to the 8.6 year PI Cycle and move to the 8.6 month internal cycle as change continues to accelerate into the consciousness singularity.

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  • last_days_of_disco says:

    Food going up is easy to explain, its the strength of the Euro. We get most of our food from Europe.

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  • S2R,

    You’ll be telling us next that Nostradamus predicted everything.. 🙂

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  • 9. 51ck-6-51x said… Better stop the press and start up the shredder Mervyn!

    We both know that’s not going to happen.

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  • Lies, Damned Lies and Statistics. “RPI excluding mortgage interest payments – was 2.5 per cent in February, up from 2.4 per cent in January.” Inflation for ordinary people, who eats food instead of sucking blood, is going up, not down. This is stagflation. And welcome back to the 70’s.

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  • Nice one LP.

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  • He may as well have written, “Hey matey, how’s it going? I know, you know, and we both know the other knows that your department wants inflation, and here you go I’m managing to keep it up. Let’s do lunch sometime.”

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  • CPI will start to fall over the next 5-6 months because it was during that period a year ago that petrol prices went through the roof, and the comparison with depress the index. Not as low as zero though. Then later in the year when we start comparing the current oil price ($50/barrel and rising) with the lows of last year, and with all the other inflationary pressures that are building up in the economy, the CPI will go mental. I reckon it could be 4-5% by year end. RPI will lag, but eventually the effects of the lower interest rates will fall out and it will catch up, fast if rates have to start rising again.

    What the BoE and govt will do is anyone’s guess. They have built their strategy on inflation declining into deflation and not rising again indefinitely. Looks now like we’ll not get deflation in any real sense, and inflation is on the march. What will they do? Raise rates in the middle of a recession? Reverse QE and start taking money out of the economy? Cut spending and raise taxes to get money out of the economy and reduce debt? (unlikely that knowing politicians).

    My guess is they’ll ignore the rising CPI figures, use the RPI as the headline figure (thanks BBC for the propaganda this morning), and basically take no action at all until its too late. Because they actaully want double digit inflation to reduce the level of debt, both public and private, as quickly and easily (for them) as possible.

    Get your money out of the bank and into something that can withstand inflation.

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  • little professor says:

    Goweresque – oil was already $100 a barrel this time last year. Current oil prices are rising in dollar terms, and even more once the collapse in Sterling is taken into account. I wouldn’t count on petrol prices bringing the CPI down.

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  • sold 2 rent 1 says:

    Look at this graph. This 28 year bubble is going to burst soon.
    What better way to mark the end of 8.6 year PI cycle and the movement to the 8.6 monthly internal cycle than to have a final blow-off exhaustion in 10 Year T-bills. For all you traders, around 19 April (plus/minus a few days), is a fantastic shorting opportunity.

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  • little professor says:

    I’m not normally one for BBC-bashing, but compare the headlines from the private media and the state owned broadcaster:

    Sky News: Shock rise in UK inflation
    CityWire: Consumer inflation shows surprise increase
    Telegraph: The return of inflation
    Independent: What fall? Inflation shows a surprise increase
    Financial Times: Inflation surprises and jumps to 3.2%

    BBC ‘News’: Key inflation measure falls to zero

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  • little professor says:

    S2R1 – a good rule of thumb is that the more random text there is written on a graph, the less insightful and valuable it is. The graph shows nothing.

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  • @18. goweresque said…

    Get your money out of the bank and into something that can withstand inflation.

    What do you suggest…… bricks and mortar?!!?

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  • I knew it.

    Can I just parp and honk that I predicted that CPI may well have gone up, a fact that was known during the last interest rate decision to cut to 0.5% (see comment #5).

    The BBC’s reporting of this is breathtaking – they now refer to RPI as the “headline” measure. Disgusting.

    So, what of that last interest rate cut, and the basis for quantitative easing? This is the nail in the coffin for the idea that MPC decisions are based on raw facts – they clearly are not and only a fawning and pliant press are standing in the way of brewing anger and resentment at the way the central bank has handled the economy as the robotic arm of the government’s bidding.

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  • Indeed little professor.

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  • Yes, the 10 year yield has been decreasing since 1981, but that is not necessarily a bubble is it? Here is another graph that goes back to 1962:

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  • We have not had negative inflation for 49 years. There is a reason for that. The letter will be ignored, because the wrong eye will be reading it.

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  • RPI index feb 08 = 211.4
    RPI index jan 09 = 210.1
    RPI index feb 09 = 211.4

    There has actually been a rise in the RPI over the past month of 0.62%
    if you annualise that (which I know you shouldn’t, but it’ll give you an idea) it comes to 7.7% inflation.

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  • Please can somebody tell me (in non-abstract terms) what a ‘consciousness singularity’ is.

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  • The aim is to boost the supply of money in the economy and hence cause inflation.

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  • mark wadsworth says:

    @ LP, good compilation, I’ve nicked that for my ‘blog.

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  • Long Gilt prices started the day up a little, but have taken a beating on the news.

    The stage looks set for a repeat of what happened in the mid seventies, when despite having an economy that was far from healthy, the stock market took off as people got out of Gilts. The result was Denis Healey being forced to call in the IMF.

    The difference today is that the numbers are much much bigger.

    Once the markets come to terms with the fact that inflation is the issue, and that deflation is not going to happen; it will be almost impossible for the government to function without the wholesale devaluation of Sterling.

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  • george monsoon says:

    Goweresque @ 18 – What money? I don’t have any…

    So what is the verdict? are we heading for hyperinflation as a government vehicle out of debt? or deflation or stagflation?? there are a lot of contradicting remarks in here. It suggests that we probably don’t have a clue?

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  • “Please can somebody tell me (in non-abstract terms) what a ‘consciousness singularity’ is.”

    It’s the name given to the time when after spending so long reading conspiracy websites your IQ decays to 1.

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  • sold 2 rent 1 says:

    p. doff,

    “Please can somebody tell me (in non-abstract terms) what a ‘consciousness singularity’ is”

    Read this
    http://brainmeta.com/index.php?p=consciousness-singularity

    and this

    http://knol.google.com/k/bruce-fenton/year-2012-the-consciousness-singularity/3pk64oyiyu361/2#

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  • sold 2 rent 1 –
    But I don’t believe in looking at charts in order to make predictions, that was the point of the counter chart. Furthermore I don’t see what these ‘waves’ at the bottom are actually charting! Anyway one picks whatever time scale and measure one wants and fits it to whatever pattern one feels like preaching – this means one persons analysis of the same data may turn out to be correct whereas another’s may be incorrect.
    The fact that there has been a couple of centuries of debt creation by the U.S. would seem to be a correct observation, but the conclusion that it must fall now is not necessary it all depends on if the market starts to shun the US debt, it seems unlikely since the biggest holders would be punishing themselves by doing so – that said, avalanches do happen and are more likely when there has been heavy snowfall preceded by rain.
    So I do not rule out your prediction, just the method 🙂

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  • sold 2 rent 1: Isn’t it when the human race suddenly becomes capable of higher thought that was previously unimaginable? Kind of like a gerbil suddenly being able to think like a monkey?

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  • A Consciousness singularity is defined as a singular event at which consciousness evolves to a state beyond current comprehension.

    If it is beyond current comprehension how may anyone predict it with certainty, let alone put a time scale on it? Are they in dialogue with a deity? [rhet]

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  • george monsoon says:

    s2r1 – have you done a lot of acid in your youth?

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  • LP @22

    Interestingly the BBC have now changed their headline,.gone 180 degrees and even used the word “hike”. I think that’s a bit OTT myself but they are obviously picking up on the sentiment around them.

    Still links from your orginal version and the “old” link also appears elsewhere on the site. Very odd.

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  • sold 2 rent 1 says:

    51ck-6-51x,

    “If it is beyond current comprehension how may anyone predict it with certainty, let alone put a time scale on it?”

    From the article above:
    “The term “Singularity”, as used in this article’s context, is an analogy to the well-known singularity in physics, the black hole, where you cannot see beyond the event horizon because light cannot escape from it. In a similar manner, we cannot see (or imagine) what’s beyond the Consciousness Singularity because it is beyond our cognitive and imaginative capabilities.”

    IMHO the totally unknowable issue is not approximately when it happens but what actually happens afterwards.

    When you start to really think about it, the closer to the Consciousness Singularity we get the more signs and clues there are it will be happening soon. If consciousness is evolving as an exponential function then these clues will start appearing more frequently, but the majority of people on the planet will only discover the “event” moments before it happens.

    IMHO anything that shows acceleration of change is a valid clue. Traders out there should see this in their charts.
    An example for me is the collapse of the HUI (gold bugs index) of 70% in 7 months. Normally 70% HUI crashes take years

    Similarly in the above US bond graph it took 20 years for yields to go from 4pc to 16pc. If change is accelerating exponentially then could see the same change pattern in 12 months or so.

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  • mark wadsworth says:

    Re LP’s comment at 22, the BBC first changed the headline to “Housing costs dampen UK inflation” (but the article still kicked off with “A key measure of UK inflation has fallen to zero for the first time in 49 years, official figures show”) and subsequently to “Surprise hike in consumer prices”.

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  • @george monsoon: yes, hyperinflation, or at least steady 8-12% inflation for a number of years, is going to be how the govt (which ever colour party is in charge) gets out of its huge debt hole (and will help massively indebted private individuals as an aside). Look at it from their point of view: which is preferable – cutting spending and raising taxes and raising interest rates (all very unpopular) and running an austerity govt for 10-15 years, or letting inflation silently steal peoples savings and reduce your debts by an equal amount? A no brainer isn’t it?

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  • It could be that inflation won’t fall an awful amount lower as the propensity to import is significantly high enough that devalued sterling will combine with the increased money supply to offset the deflationary pressure. It could be that the swing in the basket of goods is to those product areas of higher inflation due to higher price inelasticity. In other words, you need food, beverages and housing – as per the table in post 5. Discretionary purchases according to that list all look lower than the average. It’s also reported that shopping patterns are changing – this will always be to the “essentials”. These essentials beign the ones where prices are rising. Since alchohol seems to be on the governments hit list in their quasi-moral crusade, expect more inflation here.

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  • george monsoon says:

    I still think my question @ 41 is valid.

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  • sold 2 rent 1 said “IMHO anything that shows acceleration of change is a valid clue.” –
    Sorry, so anything with a positive second derivative proves there is an imminent consciousness singularity? How so? Why would there be a necessary correlation between consciousness and markets?

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  • george monsoon says:

    Goweresque – 44

    take an average of your prediction at 10% per year over the next 5 years and my wage won’t be worth sh**

    Do any of the unions have any power left after Maggie stripped it away in the 80’s ? People are going to start to demand (Quite rightly) wage rises to meet costs of living increase, and when the companies play the “credit crunch” joker card and the unions fail to make any progress, things could get very ugly indeed.

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  • george monsoon – It’s a valid question, but the answer has no bearing on the subject in my opinion, I don’t think we can dismiss ideas because of a pre-existing condition of the individual who is distributing said ideas, you may as well ask if he has ever listened to Beethoven’s fifth.

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  • george monsoon – unions are an economic greenbelt designed to ring fence a minority for their own benefit, I think they are disgusting. If you cannot secure a wage increase the best response is to hand in your notice and find a competitor. A mobile labour force increases the efficiency of wage distribution, a union just discriminates.

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  • @44

    But such inflation rates will have to have interest rates to match this to keep inflation down. If the UK government does not increase rates, there will be a flight of capital to those countries (in or out of the EU) that do. This will dump sterling on the market which will devalue the currency more. The only way to stop the currency devaluing will be to increase interest rates or for the Government to buy sterling. Since they don’t have the money for open-market currency support, the rates will have to increase. Any professionals on this site – I know this is economic theory, but do you think this holds true?

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  • matt_the_hat says:

    51ck-6-51x… pt50

    I notice how you cleverly use “A mobile labour force increases the efficiency of wage distribution”, i.e. the distribution is skewed towards a few people not equally distributed amongst the many. For a moment I thought you might be suggesting a more equal distribution of wealth, but we can’t have that because mass mobility would mean chaos. What a silly union loving socialist I am.

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  • matt_the_hatt –
    I am suggesting that wage distribution would be efficient, not a flat wage for all. How ridiculous. Socialist ideals are fantastic in principle, but do not work – do you really need another left boot?! Why, pray, should a few people not be incredibly lucky if the world works better as a whole in that scenario? Some of the richest people in the world right now provide funding for numerous good causes via trusts that evaluate charities based upon valuation (e.g. Bill Gates foundation) which is a far better way of allocating such resources than any state body.

    To paraphrase the unfortunately manipulated Nietzsche,
    The state is dead!

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  • buy some Gold!!

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  • matt_the_hat says:

    53. 51ck-6-51x…

    The entire notion of capitalism is based on the promise that you will be one of those ‘few …. incredibly lucky’ people, the reality is that you will spend 40 years looking at lights on a screen like a battery hen, working to support the lifestyle of those few, knowing that if you didn’t go to work tomorrow for some reason (health being one) you would lose your job and be in poverty in less than 6 months – unless $40 a week keeps your head above water. WAKE UP MAN. The only thing that works better is the mis-allocation of resources via advertising that makes people believe they want a Porsche instead of a Skoda when they both do exactly the same thing.

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  • sold 2 rent 1 says:

    51ck-6-51x,

    “Sorry, so anything with a positive second derivative proves there is an imminent consciousness singularity? How so? Why would there be a necessary correlation between consciousness and markets?”

    There is a strong correlation between rate of change and consciousness. The internet revolution rolled out 20 times faster than the industrial revolution.

    The dinosaurs didn’t change that much over 200 million years compared to humans over 100,000 years.

    The markets capture all aspects of reality; from human emotion to economic data to natural disasters. The wild swings in the markets show that change and consciousness are accelerating

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  • matt_the_hat – I think you are confusing capitalism and consumerism. I like capitalism but despise consumerism. It is consumerism that affects both statements you made (marketing of Porsches & needing to work all hours under the sun). people who blindly consume need to wake up, but true capitalism is the way forward. Central control is a naive solution which is not only naturally inefficient, but which is also open to greater levels of corruption.

    I like many socialist ideals, but think that the way to achieve them is through liberalisation. (Of course it would be best if we could just have no systems of control and just live in peace and tranquillity with each other.)

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  • sold 2 rent 1 –
    You didn’t answer any of my questions. The fact that the market price takes account of all available information only goes one way – from the information to the market, inferring back does not work (otherwise everyone would know all this information with absolute certainty).

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  • sold 2 rent 1 says:

    51ck-6-51x,

    All I am saying is the record rate of change that we have seen over the last year in certain charts (HUI index crash, CRB index crash, UK IR rate crash, DJIA etc) reflects accelerating change. Whilst many will say “so what”, I am arguing that this change will continue to accelerate as the economy appears to be spiralling out of control.

    Whilst we have no way of measuring global consciousness, rate of change seems to be a good guide of where we are on the exponential curve leading to the singularity.

    Read 80 Years History of Brutal Gold Stock Corrections
    http://www.safehaven.com/article-11679.htm

    During the next year we should gold stock correction of 70% happen in 1 month as we approach the next gold mania in 2010.

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  • sold 2 rent 1 –
    Change: Fair enough, you may well be correct.

    Gold: I would agree that gold price changes do tend to be abrupt too. I will have a read…

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  • S2R1

    ”During the next year we should gold stock correction of 70% happen in 1 month as we approach the next gold mania in 2010.”

    Afternoon, I think you had a bit of a typo in that last sentence. But I think you’re saying Gold will correct by 70% (I assume from peak) in a 1 month period during the next year.
    Is there a specific motnh to which you refer ?

    I was under the impression you saw Gold taking off in April this year and the bubble bursting in Feb/March 2010.

    I wasn’t aware you were expecting another Gold bubble straight after that.

    Have I interpretted that correctly ?

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  • Interesting and mildly informing though the above is……… did any of you notice the seemingly trivial notice that the RPI measure of annual increase for state pensions was going to change to average wage??

    I have been keenly aware of the cyclical changes of this measure, it is always marketed as an attempt to be kind and generous to pensioners, but in reality has always proved to be a most mean minded penny pinching measure.
    In short, when prices are falling and can be expected to for some time and wages are racing upwards, RPI is the chosen measure, conversely, when prices can be expected to rocket and wages are expected to statgnate or reduce then average wage is the chosen measure.
    Might I suggest that when the change is enacted we all brace for inflation? (bearing in mind the October date for the measurement)

    On a personal note; Solld 2 rent1, you know nothing about dinosaurs. (written by an all knowing lacertilian)

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  • letthemfall says:

    Haven’t read all these posts – too busy wealth creating this afternoon I’m afraid – but I can see a left v right (ish) argument developing.

    51ck: I think your comment on unions is a bit strong; they are after all only trying to ensure a fair deal for workers, and given the unequal distribution of the benefits of globalisation between capital and labour, I think the need for them is as keen as it ever was. There has been bad behaviour by unions in the past, for sure, but no more so than by employers.

    Viewing socialism in the sense of the example of the Eastern bloc obviously casts it in a bad light, and no one would wish to see that. And yet, the recent TV programmes about communism show another side, such as the East Germans missing the sense of community and importance placed on the arts. And of course no rampant consumerism there. I certainly wouldn’t advocate such a system, but nor can I believe the free market is the solution.

    Home time

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  • letthemfall – my argument against unions is against their effect not their intention. They are, as you say, there to ensure a ‘fair’ (well actually higher) wage for their members, but in doing so they create a greenbelt distorting the labour market itself. (I am not really on the left or right, politically – I believe that the political system is now corrupt, that the democratic ideal has been skewed by it’s interaction with the capitalist system to the point that choice is no longer really there, hence I advocate a separation and a truly free market for as much as possible. Maybe I should change my name to F233 3v32yth1ng or 1!83241!53 or something.)

    Have a good evening!

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  • voiceofreason says:

    LP @ 22 – very good !

    Re inflation hedging. I bought BP when the FTSE was down at around 3500 2 weeks ago. They sell oil in $.

    I will buy into miners on the next FTSE low. They also sell commodities in $.

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  • sold 2 rent 1 says:

    str 2007,

    The trading system I have is using the Barrons Gold Mining Index – which uses gold stocks not gold itself.
    Gold will not be as volatile as the gold stocks will be

    Graph
    http://www.bgmi.us/

    The 70pc corrections I talk about are after huge 5-6 fold increases
    The charts say we will have 1 in August-September and another in December-January which should last just over 1 month each time

    Current buy signal is early April

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  • sold 2 rent 1 says:

    iguana,

    “On a personal note; Sold 2 rent1, you know nothing about dinosaurs. (written by an all knowing lacertilian)”

    I know that during their time on earth they did comparatively little comparing to humans who went from being unable to speak to putting a man into space. That, my friend, is the relationship between consciousness and change.

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  • sold 2 rent 1 says:

    Calleman’s model at the moment resonates with 1960 and the peak in 1981 maps to April 2010
    Buy gold stocks now for a 35 fold increase in 12 months

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  • 51. 51ck-6-51x said…

    “george monsoon – unions are an economic greenbelt designed to ring fence a minority for their own benefit, I think they are disgusting. If you cannot secure a wage increase the best response is to hand in your notice and find a competitor. A mobile labour force increases the efficiency of wage distribution, a union just discriminates.”

    “I am suggesting that wage distribution would be efficient, not a flat wage for all. How ridiculous. Socialist ideals are fantastic in principle, but do not work – do you really need another left boot?! Why, pray, should a few people not be incredibly lucky if the world works better as a whole in that scenario? Some of the richest people in the world right now provide funding for numerous good causes via trusts that evaluate charities based upon valuation (e.g. Bill Gates foundation) which is a far better way of allocating such resources than any state body.”

    “matt_the_hat – I think you are confusing capitalism and consumerism. I like capitalism but despise consumerism. It is consumerism that affects both statements you made (marketing of Porsches & needing to work all hours under the sun). people who blindly consume need to wake up, but true capitalism is the way forward. Central control is a naive solution which is not only naturally inefficient, but which is also open to greater levels of corruption.”

    I think that you make two assumptions in the first two statements that undermine the valid point you make in the third – that less control is good. In the first statement you are working for the assumption that we must be ’employed’ by someone and that our only option is to move between one employer to another – I would suggest that this is a form of slavery to a system of control that we need to get rid of, rather than adapt to. In the second statement, you assume that socialism equates to state control – it does not. You seem to want to exclude the fairness implied in socialism to gain the freedom from state control – both are not exclusive, in my opinion. Being in favour of free markets, surely you see that the huge wealth inequalities existing in the world are a sign of imbalances in the ‘market’ of labour and wealth? Why do you then defend these imbalances – aren’t you in effect implying that these imbalances will always exist and therefore the ‘free’ market is not efficient? This comes up again with the example of the Bill Gates foundation – do such foundations not exist because of the failure of current systems to provide for people? Why should a large private organisation be better that a large state one? Both imply control by the few. In my experience there are very few large corporations that function in a democratic way – quite the opposite – they are all about central control, subservience, rigid hierarchy and single ideologies – rather like totalitarian states. are they really better because they are privately run? You make the point about “an economic greenbelt designed to ring fence a minority for their own benefit”. You mean like a company?
    I’m not sniping, just pointing out that while you are making radical suggestions, the arguments for them I think are founded upon some very unradical assumptions.

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  • shipbuilder –

    Thanks for your thoughts.

    Yes – I have implied some assumptions in the first two statements.
    The first is that we are in the existing system, although finding a competitor could mean becoming a competitor too.
    The second that efficient wage distribution is not necessarily flat, which I stick to (I believe a wage differential aids the efficiency of the labour market, without any prospect of any increase in wage there is less incentive to make a transition).

    Furthermore, I do believe that there will always be imbalances in this world, one way or another, yes. Regarding the failure of the current system to provide for people – maybe you are correct, but it is not the institutions that have evolved as a counter (charitable trusts, etc) that should be inspected in that case, but rather the current system itself. I don’t believe a large corporation is necessarily better than a large state one, and agree with your point about concentration of power, I do believe, however, that the current and recent (200 years) political power has allowed the easy evolution of these behemoths and that without the systems of control that have been put in place by the strengthening link between the democratic & business systems these institutions would not survive without major changes in the way they run. Finally – yes like a company, but without the benefit to society, only the barrier to the potential employees.

    I do not wish to make radical assumptions, just steer towards better solutions, and I do not believe the current ‘consumer-democratic’ system is such a solution. I do believe in true democracy and I do believe in true capitalism, and that it is the link between the two that breeds power concentration and leads to [enforced?] consumerism via the inherent need for continual production.

    I hope that addresses your comments satisfactorily.

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  • Sold2rent1
    Without the extreme evolutionary pressure exerted by dinosaurs there would be no ‘man’.
    That is the reality of evolution which happens entirely without consciousness and causes the most profound change.

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  • iguana – Nice but futile ;p

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