Inflation

[Bramble]

Is this about to become a bit more of a problem. Everything I seem to want to buy is a lot more than it was 12 months ago. The government figures of 2.5% just don’t feel believable, or are they measuring stuff I don’t buy

Any tips for farming when inflation is high??

 

[teslacoils]

Buy houses or stuff the govt won't let fall in value.

 

[farmerm]

Is this about to become a bit more of a problem. Everything I seem to want to buy is a lot more than it was 12 months ago. The government figures of 2.5% just don’t feel believable, or are they measuring stuff I don’t buy

Any tips for farming when inflation is high??

dont save a penny, borrow shed loads and go as deep into debt as you can, inflation will pay much of it off... its not in my nature to do this though...

 

[egbert]

Hold tight, presume interest rates are about to rocket.
Be ready to pick up a lot of pieces for nought!
(which seems to be at variance with the above)

 

[SilliamWhale]

Certainly having savings seems pointless

 

[egbert]

Certainly having savings seems pointless

Disagree.
It'll be too late to go rummaging under the sofa cushions when the crash hits.

 

[farmerm]

Hold tight, presume interest rates are about to rocket.
Be ready to pick up a lot of pieces for nought!
(which seems to be at variance with the above)

I dont think interest rate rises would do much to lessen the inflationary pressures of high gas prices and worker and material shortages? Any significant rises would I think bankrupt many individuals and businesses and potentially crash the economy... but I am no economist

 

[SilliamWhale]

Disagree.
It'll be too late to go rummaging under the sofa cushions when the crash hits.

On the flip side when the crash hits you know that they can come up with an "innovative financial mechanism" ?

 

[egbert]

I dont think interest rate rises would do much to lessen the inflationary pressures of high gas prices and worker and material shortages? Any significant rises would I think bankrupt many individuals and businesses and potentially crash the economy... but I am no economist

On the flip side when the crash hits you know that they can come up with an "innovative financial mechanism" ?

Ha! I'm hardly an economist meself!

But last time round 07 crash, I sat tight until the right opportunity came, borrowed as much as I needed to top up the held reserves, and bought a fair bit of real estate - which has more or less doubled in 11 years.

 

[Andy26]

Is this about to become a bit more of a problem. Everything I seem to want to buy is a lot more than it was 12 months ago. The government figures of 2.5% just don’t feel believable, or are they measuring stuff I don’t buy

Any tips for farming when inflation is high??

The government CPI and RPI are a complete fiction.

The pensions triple lock abandoned this year because one of the three metrics, wages are up 8% this year, this feels closer to what the RPI and CPI should be showing.

It wouldn't surprise me if its not closer to 10%.

 

[delilah]

Certainly reinforces the point made by folks on here about ELMS payments being index linked.

 

[SilliamWhale]

Ha! I'm hardly an economist meself!

But last time round 07 crash, I sat tight until the right opportunity came, borrowed as much as I needed to top up the held reserves, and bought a fair bit of real estate - which has more or less doubled in 11 years.

But if you had owned that real estate 10 years earlier using someone else money would you have been better off?

 

[le bon paysan]

Disagree.
It'll be too late to go rummaging under the sofa cushions when the crash hits.

Agree, its what I've always tried to do.
Deeply unfashionable though.

 

[ARW]

I feel it unlikely interest rates will dramatically rise, we a country in debt, no one has savings, it’s all credit and nearly all big businesses run around this model. Interest rates jumping would start an economic crash, hence why I believe they will stay quite low for now.
I’m up for inflation for a few years and pay some mortgage off!

 

[Yale]

On the flip side when the crash hits you know that they can come up with an "innovative financial mechanism" ?

Walletative Easing, WE are all in this together.

 

[toquark]

Interest rates are unlikely to rise significantly. The current inflation is being driven by factors outwith its sphere of influence. Plus it would crash the housing market which under no circumstances seems to be allowed to fail.

The "leveling up" strategy seems to involve making the rest of the country as expensive as the South East. What a mess.

 

[egbert]

But if you had owned that real estate 10 years earlier using someone else money would you have been better off?

As it goes, I'd bought another such piece of dirt about 12 years previously, on the same kinda terms. Reserves topped up with borrowing, strike when the market is right.

 

[Bramble]

Certainly reinforces the point made by folks on here about ELMS payments being index linked.

Whats the point of being Index linked if CPI/RPI is only 2-3%. As already pointed out wages are already up 8%, and only likely to go up. The upcoming 1.5% added to National Insurance Contributions is a more than 10% increase over existing levels.

I left the ELS after the first 5 years because the payment rates were still the same for the second 5 year period, an effective pay cut after inflation

 

[uztrac]

Many on here might remember 15/16 th September 1992. Base rate was raised to 12 %,so any overdraft etc was at least 15%. Unemployment rose to over 10,000,000.Houses were repossed by the thousands this was under John Majors government. This led to the Blair administration and the subsequent shambles.

 

[egbert]

Many on here might remember 15/16 th September 1992. Base rate was raised to 12 %,so any overdraft etc was at least 15%. Unemployment rose to over 10,000,000.Houses were repossed by the thousands this was under John Majors government. This led to the Blair administration and the subsequent shambles.

don't think unemployment ever got anywhere near 10 million