DOOM™

[AtW]

Brace yourself for the toxic mix of falling interest rates and a spike in inflation

The financial mayhem predicted by the Remain side if Leave won has not, so far at least, come to pass. But savers should take note of one consequence of the vote.

I’m thinking of inflation. One expected result of a Brexit decision was a fall in the value of the pound, which has now duly declined by about 10pc. This will in time mean that we pay more for imported goods, putting pressure on inflation.

The consensus of City economists seems to be that the consumer prices index will reach 3pc within a year or so.

Now both a weaker pound and inflation have their advantages – the fall in sterling will help our exporters, while rising prices are to be welcomed if they ward off deflation, which is regarded as far more dangerous to the economy.

But pensioners in particular will not welcome inflation. Many live on incomes that are at least partly fixed (although, as I wrote here before the vote, I think the “triple lock” on annual increases in the state pension is safe for the moment) and so will see their living standards eroded by any inflation"

More from ToryGraph: Brace yourself for the toxic mix of falling interest rates and a spike in inflation*

Well, they voted for Brexit, so time to pay for it.

 

[BrilloPad]

I am sure our increased exports will soon make up for it.....

 

[diseasex]

That only means that we will see new highs on the stock market. My boots are filled so it's welcome..

 

[stek]

Knee deep in the dead.....

 

[xoggoth]

But pensioners in particular will not welcome inflation. Many live on incomes that are at least partly fixed

Indeed, but I'd rather see a reduction in my income than carry on in the EU as it is. Anyway, I'm still so incredibly handsome I can always go back to being a rent boy.

 

[xoggoth]

In any case, do a Google of "currency fluctuation euro" the pound is still worth more relative to the Euro than it has been at times during the last 5 years. Not just our currency that's struggling.

 

[diseasex]

In any case, do a Google of "currency fluctuation euro" the pound is still worth more relative to the Euro than it has been at times during the last 5 years.

WAT?
GBP/EUR:1.19501 low:1.11231 high:1.44072

for 5 Y
its closer to low than high now...

 

[AtW]

Indeed, but I'd rather see a reduction in my income than carry on in the EU as it is. Anyway, I'm still so incredibly handsome I can always go back to being a rent boy.

You might just get what you've asked for...

 

[stek]

Indeed, but I'd rather see a reduction in my income than carry on in the EU as it is. Anyway, I'm still so incredibly handsome I can always go back to being a rent boy.

Jeremy, there's no call for rent men.....

 

[OwlHoot]

Brace yourself for the toxic mix of falling interest rates and a spike in inflation

Why in the present circumstances does a bit of inflation spell doom? It's more like a slight reprieve from this horror barreling towards us!

2016-07-04 Deflation Is Blowing In On An Eastern Trade Wind

Probably within a year or so Brexit will look more and more inviting simply as a way to deliberately weaken the pound and stave off deflation!