How long do you think the current UK economic and employment downturn will last for?

[AtW]

In turn the £ dives and inflation takes off.

Unfortunately it's much worse than that - previously printing money would result in currency going down, however those clowns thought they found perfect solution - both USA, EU (UK) will print money, so in theory currencies would be more or less ok against each other, perfect solution right?

Wrong.

The end result is that prices of real stuff (food, oil, gold) goes up so everyone is shafted even though relatively currencies are not that different against each other.

This leads to outflow of wealth from the west to other countries - that's why you don't see many Western people buying big football clubs, and when they do they just use debt tricks to effectively buy it for free

[EternalOptimist]

Yup, I've still got my own teeth as well though you old fart.

i still have all my teeth and my hair you greenie.

i keep them in a box under the bed

[TimberWolf]

QE was used for 2 things:
1) purchase tulip assets at overinflated prices from banks to prevent them marking them down to real value and going bust
2) purchase Govt bonds/gilts because China no longer wishes to do so - banks used to do that so that they create illusion of demand but then they resell those bonds back to BoE/etc.

What happens with this money banks got? They put them into commodities markets - that's why oil, gold, food etc keep going up, that's where all the printed money end up - all this will import inflation back into countries big time, where as banks will pocket hefty profits.

HTH

Is it already too late to protect savings from (price) inflation? E.g. the places that would normally be refuges (gold, property, etc) being in bubbles of their own before inflation appears in official figures, the damage already having been done to savings with now nowhere to go?

[EternalOptimist]

Is it already too late to protect savings from (price) inflation? E.g. the places that would normally be refuges (gold, property, etc) already being in bubbles of their own before inflation appears in official figures, the damage has already having been done to savings with now nowhere to go?

The only thing to do, imo, is to spend.

I stopped saving about a year ago and have started churning stuff as frequently as is possible.
vehicle, PC - any big ticket item.

spend on the house, new fences, drive, etc etc

[TimberWolf]

The only thing to do, imo, is to spend.

I stopped saving about a year ago and have started churning stuff as frequently as is possible.
vehicle, PC - any big ticket item.

spend on the house, new fences, drive, etc etc

Beans by the pallet load. Food presumably won't be getting any cheaper. Heck, it seems to get more expensive each shopping trip.

[EternalOptimist]

Beans by the pallet load. Food presumably won't be getting any cheaper. Heck, it seems to get more expensive each shopping trip.

big ticket items

get that new shower put in.

or

have a big fck-off holiday every six months.

[CheeseSlice]

Hello,

I am interested to read what your views are.

Cheers.

It will go on several years, followed by a politically engineered pre-election boom to secure a Tory win in 2015.

HTH

[Sysman]

The only thing to do, imo, is to spend.

I stopped saving about a year ago and have started churning stuff as frequently as is possible.
vehicle, PC - any big ticket item.

spend on the house, new fences, drive, etc etc

Not convinced about stuff that depreciates, but if you might need to put a new roof or do any other major repairs on the house in say the next 5 years, now is the time to do it before prices go up.

[Sysman]

big ticket items

get that new shower put in.

or

have a big fck-off holiday every six months.

Quote from someone who got hammered by the taxman many years ago:

"The taxman can take all your money, but he can't take your memories."

[MrMark]

It will go on several years, followed by a politically engineered pre-election boom to secure a Tory win in 2015.

HTH

I'm sure that's the plan, but remember we're talking about politicians here.

If there's an option to screw up, the beloved leaders will find a way..