This current situation and financial problems

glasshouse · Mar 21, 2020

I know i am going to get pelterd for this, but here goes anyway
The property industry has sucked the country dry.
Shops, farms, factories are all paying far too much in rent on upwards only reviews so there is no way to build reserves
Private house renters are even worse off,
I saw a 4 bed ex council house for rent for £1600/ month yesterday, i nearly choked.
That house was probably bought off the council for £10-15 k
A farm cottage used to cost a days pay per month (£50) 25yr ago
Now it is £900 -£1000 per month
That is two weeks pay or even three

Martin Holden · Mar 21, 2020

Ah this is the modern world which has created this. Man gets a taste for more and then wants more and more but he wants it now, not when he can really afford it!! The credit driven world is a wonderful place isn’t it????

glasshouse · Mar 21, 2020

Its the same mentality, buying up all the houses, buying up all the toilet roll
I am alright jack

Campbell · Mar 21, 2020

One for the legal team.
As many 'otherwise viable' businesses close down, and probably never to start again, some will have no choice but to walk away from any debts. If these debts are challenged through the court system, the defence will surly be "I was obeying government orders, and as a result have no money to pay anyone" The Crown v The Crown.......?

suffolksmallholder · Mar 21, 2020

glasshouse said:
I know i am going to get pelterd for this, but here goes anyway
The property industry has sucked the country dry
Shops, farms, factories are sll paying far too much in rent on upwards only reviews so there is no way to build reserves
Private house renters are even worse off
I saw s 4 bed ex coincil house for rent for £1600/ month yesterday, i nearly choked
That house was probably bought off the council for £10-15 k
A farm cottage used to cost a days pay per month (£50) 25yr ago
Now it is £900 -£1000 per month
That is two weeks pay or even three

Ah, that T woman again. chasing votes she was. It was a fantastic decision to get rid of old housing stock and do something sensible with the money. Unfortunately no it was frittered away and not re-invested in NEW housing hence the shortage now.
An ag-tied cottage will fetch the same rent as an ordinary place, 'tis only the selling price that is different.
Interestingly some of my children own and some rent. The owners are really tied to one place while the renters are much more mobile, going where the young folk like to live.......Melbourne, Bristol as examples.

SS

Martin Holden · Mar 21, 2020

Good

Campbell said:
One for the legal team.
As many 'otherwise viable' businesses close down, and probably never to start again, some will have no choice but to walk away from any debts. If these debts are challenged through the court system, the defence will surly be "I was obeying government orders, and as a result have no money to pay anyone" The Crown v The Crown.......?

good point!!

Brisel · Mar 21, 2020

glasshouse said:
I know i am going to get pelterd for this, but here goes anyway
The property industry has sucked the country dry
Shops, farms, factories are sll paying far too much in rent on upwards only reviews so there is no way to build reserves
Private house renters are even worse off
I saw s 4 bed ex coincil house for rent for £1600/ month yesterday, i nearly choked
That house was probably bought off the council for £10-15 k
A farm cottage used to cost a days pay per month (£50) 25yr ago
Now it is £900 -£1000 per month
That is two weeks pay or even three

Will you add housing developers to your hit list? Plenty of land signed up for building, yet Persimmon, Taylor Wimpey etc are managing supply to keep the demand ahead of it so prices remain high to protect their profit margins?

ollie989898 · Mar 21, 2020

I agree to an extent that too much of the nation's wealth has been diverted into housing. It's ironic, because in reality whatever your house is worth is nearly immaterial because you still have to live in it. It's not like you can sell it and be instantly any better off.

The banks have been the main beneficiaries of this system for many years. In other countries there is more housing stock and private rents are much more realistic. In the UK housing has become an investment and a way of building a pension and/or income stream. This leads to a hugely disproportionate haves and have-not scenario.

There does need to be a rethink in how the country, society and economy functions. We are a big economy and should be in a far better state than this.

Short term thinking and popular politics is what has done it. Every government of every stripe has done the same for decades. It needs to stop.

Bossfarmer · Mar 21, 2020

andybk said:
time to buy some safe stock wrappers (isa) going to be a massive jump in about 15-20 weeks , im going to put some more in soon . should be worth 15-20% more when it all settles down ,

what are safe stock wrappers?

Bossfarmer · Mar 21, 2020

yellow belly said:
If it is not dry for 4 of the next 6 weeks many farms will have no harvest

looks like it will be though, everyone should get their spring crop in now

Farmer Roy · Mar 21, 2020

Goweresque · Mar 21, 2020

ollie989898 said:
I agree to an extent that too much of the nation's wealth has been diverted into housing. It's ironic, because in reality whatever your house is worth is nearly immaterial because you still have to live in it. It's not like you can sell it and be instantly any better off.

The banks have been the main beneficiaries of this system for many years. In other countries there is more housing stock and private rents are much more realistic. In the UK housing has become an investment and a way of building a pension and/or income stream. This leads to a hugely disproportionate haves and have-not scenario.

There does need to be a rethink in how the country, society and economy functions. We are a big economy and should be in a far better state than this.

Short term thinking and popular politics is what has done it. Every government of every stripe has done the same for decades. It needs to stop.

What we are seeing is the consequences of money not being tied to something of intrinsic value. That is why credit can be created so easily, because money is fiat money, that is to say it is money because the government says so. It has not claim on anything as of right, because its just a piece of paper. It only functions as money while everyone accepts it as money. Once that faith disappears, its no longer money its just a piece of printed paper like yesterdays newspaper.

Throughout human history money has been linked largely to gold and other precious metals. We removed the final link of the global monetary system to gold in 1970, when Richard Nixon stopped the convertability of the dollar into gold. Since then every currency in the world has had no link to anything of value, its only value is relative to other fiat currencies.

History tells us that fiat currencies do not last forever. They've been tried many times before, as way of escaping the restraint of a gold based system, and every time they collapse into financial disaster, because eventually too much paper money is printed and it become worthless.

Our system will be no different.

ollie989898 · Mar 21, 2020

Goweresque said:
What we are seeing is the consequences of money not being tied to something of intrinsic value. That is why credit can be created so easily, because money is fiat money, that is to say it is money because the government says so. It has not claim on anything as of right, because its just a piece of paper. It only functions as money while everyone accepts it as money. Once that faith disappears, its no longer money its just a piece of printed paper like yesterdays newspaper.

Throughout human history money has been linked largely to gold and other precious metals. We removed the final link of the global monetary system to gold in 1970, when Richard Nixon stopped the convertability of the dollar into gold. Since then every currency in the world has had no link to anything of value, its only value is relative to other fiat currencies.

History tells us that fiat currencies do not last forever. They've been tried many times before, as way of escaping the restraint of a gold based system, and every time they collapse into financial disaster, because eventually too much paper money is printed and it become worthless.

Our system will be no different.

In todays world, gold, silver or other precious metals are of no real intrinsic value either, except what people believe they are worth? You can't burn it or eat it.

yellow belly · Mar 21, 2020

Farmer Roy said:
ive had no harvest for over 2 years

I’ve gone & done something else

however, the “something else” could quite easily be put at risk if someone at work tests positive.
Being a casual, I can’t afford any time off work, no sick leave or holidays owing . . .

farmers ALWAYS have lots more options than the general wage earning public

I agree many farmers and farmworkers are multiskilled and can turn their hand to anything having often had no choice but do it your self from an early age
problem solving is learned from an early age as is using your hands
it is easier now to find out how to do any job because of you tube ect

andybk · Mar 21, 2020

Bossfarmer said:
what are safe stock wrappers?

a wrapper is a selection of stocks picked by a broker(covers risk better) will have different values according to risk your willing to take , some will be in blue chip companies that dont tend to tank even in bad times ,
One of my investment portfolios for instance will have 3 different wrappers (one is Baillie Gifford Managed B Acc ) all with different risk attached again to spread risk even more , obviously at the moment all stocks are down but the greatest gains always come in the few days after crisis is over or looking like over , So the time to buy is when you consider to be the lowest point which will be right in the depth of crisis, so about another month
a good source is trustnet

https://www.trustnet.com/factsheets/n/sn85/scot-eq-baillie-gifford-balanced-managed

glasshouse · Mar 21, 2020

Bossfarmer said:
what are safe stock wrappers?

Blue water pipe

Goweresque · Mar 21, 2020

ollie989898 said:
In todays world, gold, silver or other precious metals are of no real intrinsic value either, except what people believe they are worth? You can't burn it or eat it.

Yes they are, precious metals are used massively in electronics. The point is that if a money supply is not connected to something in relatively short supply (and gold is hard to come by) then sooner or later it will be printed into oblivion. The US is contemplating printing money and giving it to people. Where do you think that little escapade ends?

Gold has held value as a store for millennia, for the entirety of human civilisation. One ounce of gold today will buy roughly the same goods as an ounce of gold 100 years ago. You can't say that for printed money, a pound today has a fraction of the purchasing power of a pound even 50 years ago.

Princess Pooper · Mar 21, 2020

ollie989898 said:
Where are these jobs advertised?

Been plenty of posts on twitter directly from the growers and also HOPS that run the seasonal workers scheme

Tubbylew · Mar 21, 2020

glasshouse said:
I know i am going to get pelterd for this, but here goes anyway
The property industry has sucked the country dry.
Shops, farms, factories are all paying far too much in rent on upwards only reviews so there is no way to build reserves
Private house renters are even worse off,
I saw a 4 bed ex council house for rent for £1600/ month yesterday, i nearly choked.
That house was probably bought off the council for £10-15 k
A farm cottage used to cost a days pay per month (£50) 25yr ago
Now it is £900 -£1000 per month
That is two weeks pay or even three

Thats the trouble with an economy based nearly entirely on financial services, mortgages, loans, lease agreements, have been pushed as gospel for 20 years, sure they're all useful tools, but it seems the a measure of a mans worth is no longer what he can achieve, but what he can borrow. The hens have come home to roost, for now at least. The deck of cards was always going to come crashing down, one day. "Alas, that these dark days are mine..."

The Seeker · Mar 21, 2020

I really dont know where all this will end up but money wise Dad always says you get to see who's wearing a swimming costume when the tide goes out ....

This current situation and financial problems

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0 %

Up to 25%

25-50%

50-75%

75-100%

100% I’ve had enough of farming!

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