Thursday, October 14, 2010

Savers to get shafted again…..

Bank of England Prepares to Print Money Despite High Inflation at CPI 3.1%

'UK Inflation for September 2010 was unchanged at CPI 3.1%, remaining stubbornly above the Bank of England's upper limit of 3% and target of 2%, despite virtually 10 months of worthless mantra from the BoE Governor that high inflation was ALWAYS just temporary and imminently expected to fall back to below the 2% target'

Posted by hpwatcher @ 12:51 PM (2222 views)
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24 thoughts on “Savers to get shafted again…..

  • sibley's b'stard child says:

    Interesting read, so is further QE a logical next-step?

    I will get rather irked if they begin asking for my first-born child.

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  • general congreve says:

    Gold has just hit a record high of $1380, seems like the perfect time for more QE to me.

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  • sibley's b'stard child says:

    Phew, just as well you don’t hold any gold, eh?

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  • Is it a good time to buy gold?

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  • sibley's b'stard child says:

    Alan, it’s always a good time to buy gold. We are most definitely not in a bubble. Nope.

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  • Nadeem is right.

    The whole charade is seen as part of ‘managing inflation expectations’ – perhaps the closest watched indicator by Mr King.

    One day the world will wake up and realise that the only good inflation is wage inflation and currency appreciation – where these are paid for by gains in productivity. See German policy for hints. Instead we seek to pay our workers less and debase our currency.

    Oh how poor are we? Poor in spirit and poor in thought.

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  • careful with gold….it hit an all time high in 1980…this would be the equivilent of around $2100

    after that though,it fell every year for 19 years!

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  • Has anyone considered applying for an arrest warrant for Mervyn King on charges of counterfeiting and fraud? If company directors attempted to issue new shares and do no more than dilute the value of existing shares they would probably go to prison for fraud. Printing money (QE) is nothing more than fraud as it devalues the current in circulation.

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  • Sibley, thanks for the advice, I’m off out to mortgage the house and buy a few ingots.

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  • general congreve says:

    @5 – From Le Metropole Cafe:

    Top callers … wrong again … are either out of their positions or worse, short. Top callers come out of the woodwork for years. The Jon, (NitWits), Nadlers are screaming bloody murder today with Gold and Silver going to these “unjustified” levels. Top callers have been WRONG for 10 years running but their past calls were never as dangerous as now.

    Trade very little and carefully, or better, not at all. We now face BIG events that will certainly be “outside the box”…. a global currency crisis with dimensions never seen before.

    Do you feel “lucky” … maybe make a couple of good trades and “feel good”? Of course, but the real risk now is being “in” when all hell breaks loose. Being “in” paper is where you will be if you are “out” of Gold.

    Where’s the upside of trading in and out … the risk is that the music stops suddenly and only those with Gold and Silver assets will survive. How can anyone recommend playing Russian roulette with your financial future … your loved ones? This is exactly what top callers are doing. Top callers are assuming that “this CORRUPT system” will survive.

    Assume that this current fiat system will die… go the way of every single one before it… die to be transformed. “Money” will be “changed” … shape… form… value!, and much less purchasing power. Devaluations are about stripping purchasing power… not spreading wealth from helicopters.

    “Staying on the Bull” is the hardest thing to do.

    If you were bright enough back in 1999 or 2000 to enter the precious metals arena, you have done VERY well so far…But! Yes it is a BIG BIG “but” … if you now decide “OK I made enough to retire” or whatever, where do you place your wealth?

    Exiting and cashing in your gains will only put you in front of the same oncoming train that those who don’t have a clue are about to be hit by.

    Made a Million? … now decide to “cash out” for a month or so expecting a pullback in Gold. What happens if you wake up Wednesday to a $100/day move up? And $200 on Thursday and $300 on Friday?

    What’s your mindset over the weekend?

    Sunday night it is announced that Monday and for an indefinite time will be a bank AND market holiday?

    You were SO right for 10 long years and are only wrong for 1 day. The people who were right on the most important day of all will survive, you will not. No one knows… (except for the dirty Mafia insiders) when this thing will break apart at the seams. You just cannot trade and RISK losing everything by being on the sidelines in trash cash.

    Anyone who suggests that you trade your metals positions are doing a huge disservice and need to have their MORONIC heads examined. If Gold pulls back … so what…for how long and to what level? You might be right in the short term. But take very little to no risk with your entire financial future. Is it worth the gamble?

    DO NOT get cute and think you are smarter than a Mafia manipulated market. There are many many smart traders bankrupted during normal times. Stick to home base and don’t let loose of even one ounce nor one share because if you are not right immediately you will be. Who cares if it is “later” and you must live through another correction, this battle’s winners will have the power and the money for the next 100 years.

    THIS is not a trade, it is a important strategic position that must be in place when the music stops if you expect to survive the coming events.

    Don’t let ANYONE fool … con … you into giving up the only asset that will protect you.

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  • Well that’s not alarmist then, phew.

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  • “Bogus inflation statistics are never more clearly illustrated then by the fact that academic economists in the pay of vested interests or journalists that think they are economists write reams of nonsense”

    ————–
    Beautiful.

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  • sibley's b'stard child says:

    C’mon then General, how much money have you got riding on this bubble?

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  • C’mon then General, how much money have you got riding on this bubble?

    I’ve got fifteen quid.

    It’s a silver handle broken off from an old teapot.

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  • “C’mon then General, how much money have you got riding on this bubble?”

    I’m sure you are joking because it is an impertinent question. It is none of anybodies business.

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  • sibley's b'stard child says:

    Estrader, i’m being semi-facetious. However, if i’m going to subjected to such gold-ramping on a daily basis i’d like to know how much of a VI the General has.

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  • “However, if i’m going to subjected to such gold-ramping on a daily basis i’d like to know how much of a VI the General has.”

    sibley’s b’stard, fair enough but the question could almost be reversed: How much have you got to lose through inflation?
    In a sense it is an unanswerable question because anybody with a bit of brains doesn’t put all their eggs in one basket and rely on a hope and a prayer. You ought to be paying attention to why people talk about gold instead of acting like a dinosaurs laughing at the little mammals scurrying around your feet.

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  • general congreve says:

    @12 – How much? Probably not enough, but doesn’t look like that pullback is ever going to come so I can load up on substantially more.

    Where is this bubble? Not many on here raving about gold is there? How many friends or family do you know talking about it? How about that bloke down the pub? In real terms the price is still well below it’s LONG TERM 40 YEAR AVERAGE PRICE, yet the situation we find ourselves in is hardly average is it?

    Just had a leaflet through the door yesterday, apparently a ‘top london jeweller’ is coming to my town hall to pay paltry rates to any gullible locals for their scrap gold, including up to £80 for a sovereign (anyone can sell one for over £190 to a reputable dealer). Might go down and cause a ruckus, just for a laugh.

    Did you know that on average in the US/UK only 2-3% of individuals own investment gold?

    The only bubbles I see are housing, bonds and fiat currency. Last one out please shut the door.

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  • general congreve says:

    @16 – Thanks for the support Estrader, but I enjoy the opposition, gives me a warm glow to know I’ll be rubbing their noses in it further down the line 😉

    To be fair I’ll state my position. I currently have about 70% of my cash worth in Precious Metals. All physical and about 90% in gold and 10% in silver. This is my position because I have every reason to believe I am right about where the price is heading and have been correct for the last 18 months, unlike many on here. Of course when sensible fiscal policy returns with sky-high interest rates and no more QE and the subsequent deflationary depression it will bring (no incentive for TPTB to do this), then the top may well be in, until then I’ll stick to my guns.

    As for ramping. What difference does me talking about gold to a bunch of other guys with too much time on their hands make to the gold market? Even if you all went out and bought 100k worth tomorrow, what would be the difference? The sum total of f4ck all I imagine. I am not on here trying to boost my wealth. If I wanted to do that I’d go back to work! I’m merely trying to get it into people’s heads that their savings are at stake and that there is not only something to hedge against this, but if you’ve got the balls you may well come out the other side with bumper profits and a massive sh1t-eating grin on your face!

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  • sibley's b'stard child says:

    GC, I appreciate that you took the time to humour me. As Estrader alluded, you would be well within your rights to tell me to STFU. My position – as I have intimated on other occasions – is that I have but two brass farthings (in the grand scheme of things) to rub together; as such, I have nothing to lose but everything (I hope) to gain by a HPC. Had I sufficient wedge behind me then perhaps I may have more than a passing interest in gold vs sterling vs US $ or whatever. But I don’t so my stance is purely academic. Were I in your position then I most probably would act accordingly; I simply like to know people’s motivations.

    I’ll let you buy me a drink when you make your first million…

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  • @19 General Congreve, I wish I’d bought some gold 10yrs ago, that’s for sure. What’s your guess on where gold might top out to? To make it clear, I don’t know what the long term average is etc., or how over/under valued it is, when would you start getting twitchy about selling?

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  • general congreve says:

    @20 – Fair do’s, your position doesn’t allow for you to get involved in the gold bull, but hopefully the coming HPC will work out nicely for you. But I was more or less on the money with the article I posted earlier attested too:

    “Top callers … wrong again … are either out of their positions or worse, short.” 😉

    Will be more than happy to buy you a beer if I win big, but then it could all be a cunning plan to kidnap me and rob me of my stash!

    @20 – LOL Alan, you tell me I’m alarmist then admit you know very little about the market! The long term average is about £1650 dollars (I got that from an article on zerohedge.com I think), but then the conditions we face now are anything but average (end of a long term credit cycle, ponzi fiat reserve currency, ponzi fiat currencies in all other countires, unprecedented public and personal debt etc.). So the sky is the limit. What is likely to happen has been called the greatest wealth transfer in history, from those that hold their assets in worthless debt-backed fiat paper supported by a busted economy with no legs, to those that hold it in the oldest currency known to man that is no one elses’s liability and cannot be debased in any meaningful way.

    I’ll get nervous about getting out when everyone is screaming buy gold and there are serious noises from governments that they were totally wrong about QE and that they are going to raise interest rates sky high and to hell with the pain it’ll cause the public. If you study the facts you will understand the situation is dire and can only spiral out of control. If they make the cuts we’re damned, if they don’t we’re damned, essentially.

    I’m in gold because I started researching about the situation when Icesave collapsed (got my money out the day before they shut the door – so was right about that – but still a big thanks to Gordo for getting me my outstanding interest back at the taxpayers expense). Some good places to learn and understand the situation are:

    zerohedge.com
    marketoracle.com

    Also go to youtube, have a look at vids by:

    Marc Faber
    Gerald Celente (He will depress you, but I fear he is very right)
    Jim Sinclair
    Max Keiser (a bit nasal and OTT, but on the money)
    Peter Schiff

    Alternatively get your financial news from the BBC (complete failure to mention gold’s latest breakout or what it means) and the Sunday Times Money Section (Sunday before the -3.6% September house price crash read ‘Join the new BTL Boom!’).

    I am not ramping, I am informing. Think of it as a public service 😉

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  • general congreve says:

    @22 – Sorry Alan, was supposed to say @21 in response to your question.

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  • Thanks, I’ll have a look.

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