Inflation creates free money for borrowers, at the expense of those who have saved carefully
Rishi is just trying to keep the economy flowing, but at what cost?
Demand
- Thread starter Hilly
- Start date
Inflation creates free money for borrowers, at the expense of those who have saved carefully
Rishi is just trying to keep the economy flowing, but at what cost?Basically production of everything slowed down worldwide and its not back up running properly yet. You'll struggle to find any electrical items actually in stock you can physically walk out the shop holding. Apple for example is roughly 6 weeks from order to delivery. Vehicle wise the lease companies tend to have more stock than the manufacturer dealerships.
Inflation creates free money for borrowers, at the expense of those who have saved carefully
we live through times where saving does not pay and borrowing / leveraging really does
will it last ? who knows !
Hilly
Member
- Location
- Scottish Borders.
easy to do ................ the consequences maybe not so easy to manage however, it does indeed seriously devalue currency, that is why cash is the last thing you want right now, you need assets and debt to beat the "squeeze"
It's why everything suddenly feels that bit more expensive
Cab-over Pete
Member
- Location
- Kenilworth, Warwickshire
And in a similar vein, when the news bod tells us the economy has dropped back x percent, does it really matter if the rest of the worlds major economies are doing the same?
This Bear Of Very Little Brain just tries not to think about it, preferring to find comfort in the fact that some lime will eventually be needed somewhere.
Hilly
Member
- Location
- Scottish Borders.
As long as it’s good debt.
Was talking to a packaging supplier yesterday, their business has gone mental , trying to keep up with demand. Shortages of cardboard because of high demand, the way we shop has changed, home delivery uses more packaging.
Hilly
Member
- Location
- Scottish Borders.
What are you going to get borrowed up to the doo dars moving forward for then ?
Paddington
Member
- Location
- Soggy Shropshire
This Bear Of Very Little Brain just tries not to think about it, preferring to find comfort in the fact that some lime will eventually be needed somewhere.
You rang ?
You rang ?
Cab-over Pete
Member
- Location
- Kenilworth, Warwickshire
Was thinking more of the bear who loves hunny
- Location
- roe valley
Everything is away mad. Ordered a turbo. £350 and it's available in June, or £490 and have it in 2 days, same firm. Off the counter shell bearings 10 days wait, send the wrong ones another 10day wait. Had 2 lots of stuff at the galvanizers 5 week wait each time.
- Location
- Montgomeryshire
A collection of ploughs?
Building another shed / yard at the moment with cheap money
the building will be worth more than the cost to build and I can make a higher return on it than the money costs
It's asset value will also rise with inflation whilst the magnitude of the debt falls in relative terms
No brainer
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- Location
- somerset
as i see it, the boe, buys guvs bonds, with printed money, as the guv has significant control of the boe, interest dead low. The problem comes, if the money markets lose confidence in the £, or the guvs handling of the finances. To fully understand it, you need about 3 phd's in false accounting. Some inflation would reduce the value of the borrowing, but as the boe, is the main lender, and it bought the bonds, with printed money, you begin to understand why many 'city traders' sniff a white powder. But the true point, is that this is the result of a global pandemic, which has pretty well hit every country in the balls, so the after effect, might not be quite as painful, as first thought. Interest rates will not rise for a considerable length of time, if they did, it would result in a bloodbath of insolvency
Hilly
Member
- Location
- Scottish Borders.
Argentina suffer inflation !
GeorgeK
Member
- Location
- Leicestershire
Another danger of printing money is asset bubbles as the newly created money is never distributed evenly it condenses in certain assets and those who own them do very well but others lose out. The problem with asset bubbles is you can only really identify them after they have burst. Examples might be Bitcoin, house prices and tech shares...
GeorgeK
Member
- Location
- Leicestershire
Best way. A lot of 'intelligent' people have caused no end of damage and here we go again with Greensill and his mate Gupta 'Saviour of British Steel.' It's looking like both 'businesses' were really multi-billion £ frauds that did little more than pass IOU's between each other to disguise huge operating losses and bad debts. Greensill robbing investors that will no doubt include pension funds with promises of 'secured' financing that was anything but, and Gupta raking in millions possibly billions of taxpayer £ in return for promises of keeping jobs that will now be lost without more government bailouts
kiwi pom
Member
- Location
- canterbury NZ
What happens if anyone with spare ground borrows money to build a shed?
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