A Big, Bright and Frightening Future for us all...???

Money, investing, mutuals etc
Boro Boy
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A Big, Bright and Frightening Future for us all...???

Post by Boro Boy » Sun May 03, 2020 8:18 pm

Talk is that when the world finally "restarts" that one of the first threats could be the return of crippling inflation...!!!

Lets hope the "Powers that Be" are reading reports similar to what follows and not wildly planning to print money and fall into the inflation trap? Or is it the famous "fingers crossed approach": https://www.bloomberg.com/news/articles ... -inflation :think:
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Re: A Big, Bright and Frightening Future for us all...???

Post by Chadwick » Sun May 03, 2020 8:58 pm

I expect we will just ignore it until there is no choice.

No, wait, this directly affects the wealth of our Lords and Masters, so I expect they will find some way of extracting money from everyone else to cover their losses.
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Re: A Big, Bright and Frightening Future for us all...???

Post by Boro Boy » Sun May 03, 2020 9:37 pm

Chadwick wrote:
Sun May 03, 2020 8:58 pm
I expect we will just ignore it until there is no choice.

No, wait, this directly affects the wealth of our Lords and Masters, so I expect they will find some way of extracting money from everyone else to cover their losses.
In the past the usual tool to tackle inflation is to increase interest rates... there is plenty of room for that and yes, all those with loans, credit card debts, mortgages (that's most of the population) etc. who could end up being financially crippled... let's think about that when the Government is asked to pay for this & that and so willingly does so at the moment - that can't go on for much longer...!
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Re: A Big, Bright and Frightening Future for us all...???

Post by macliam » Sun May 03, 2020 10:37 pm

Why do you think the government is making it so easy to borrow? A population in debt is a population that doesn't make waves.......

I await the squeals when/if the interest rate ever gets close to the levels I endured when buying my first flat in London. There is a generation waiting to find out that a trip to Thailand and continual stag dos are not a vital part of life and that whingeing doesn't get you far......
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Re: A Big, Bright and Frightening Future for us all...???

Post by AAAlphaThunder » Mon May 04, 2020 7:26 am

I have assets that are easily liquidated should interest rates rise to breach the threshold of my current financial plan.
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Re: A Big, Bright and Frightening Future for us all...???

Post by planteria » Mon May 04, 2020 8:12 am

tell us more about your plan AAAT..

we may have a wobble with deflation first, but i see hyperinflation ahead.
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Re: A Big, Bright and Frightening Future for us all...???

Post by blythburgh » Mon May 04, 2020 9:12 am

I fear going back to the 1970's and 1980's with the horrible inflation. Only those of us who lived through will know how bad it was for your savings and what you could buy as prices went up and trying to pay your mortgage and other forms of credit was so hard with well into double digit interest rates.

It happened under Labour and the Tories. Mrs Thatcher kept her election promise not to double VAT. She raised it from 8 to 15% overnight. You can imagine what that did to inflation as VAT is charged on the "wouldn't it be nice to have the latest and hardly changed mobile phone" to essentials in the Supermarket.
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Re: A Big, Bright and Frightening Future for us all...???

Post by Sarah » Mon May 04, 2020 9:59 am

High interest rates tend to be used for an overheating economy; whereas the upcoming problems are supply-side. They're unlikely to raise them anytime soon, the economy is far too weak. It's going to be high inflation and low interest rates for a long time ahead; a great time to borrow but a terrible time to save.
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Re: A Big, Bright and Frightening Future for us all...???

Post by blythburgh » Mon May 04, 2020 10:17 am

We save on a regular basis but with the acceptance the the £100 in the account will buy less than £100 worth of the average basket in a year's time.

And I have no regrets about that, we have bought the new fridge freezer and washing machine with those savings. Our new kitchen, when it happens, will not need a loan either.

You know the saying "everything but the kitchen sink"? Well we have nothing but the kitchen sink. Because of the narrowness of our kitchen we have to have a narrower sink than the building suppliers stock. But we tracked one down in WIckes so bought it and the builder was coming in today to start removing the current kitchen and it will happen one day. In the meantime we live with the stuff we have had for many, many years. 2015 we were going to have it along with the new wet room that replaced the bathroom. But no sink could be found that was narrow enough unless you did not have a draining board. An essential when you have no room for washing machine, fridge freezer and dishwasher. No prizes for the one of the three we can live without
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Re: A Big, Bright and Frightening Future for us all...???

Post by AAAlphaThunder » Mon May 04, 2020 5:55 pm

AAAlphaThunder wrote:
Mon May 04, 2020 7:26 am
I have assets that are easily liquidated should interest rates rise to breach the threshold of my current financial plan.
I have, and I won't say how many, in a bank safety deposit box:
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