The left-field threat to Europe ...

[sasguru]

That's because printing presses at BoE make up for slack demand, so instead of Govt paying what's due for its own mismanagement now whole population pays it in higher inflation.

You really are almost as stupid as BlasterBates, hard though that seems almost impossible.
So you think that countries paying higher rates on their bonds has no effect on their citizens?

[AtW]

So you think that countries paying higher rates on their bonds has no effect on their citizens?

I state categorically that having Italy pay 7% on 5-10 bln euros of debt incurs far lower cost on population than UK's 5%+ inflation.

[sasguru]

I state categorically that having Italy pay 7% on 5-10 bln euros of debt incurs far lower cost on population than UK's 5%+ inflation.

Apart from the GDP-debt ratio rising to unsustainable levels thus leading to economic collapse in the long run.
Whereas inflation is good for a heavily-indebted population in that their debt is eroded faster.
FFS, you are more stupid than BB, I thought it was impossible

[DimPrawn]

Apart from the GDP-debt ratio rising to unsustainable levels thus leading to economic collapse in the long run.
Whereas inflation is good for a heavily-indebted population in that their debt is eroded faster.
FFS, you are more stupid than BB, I thought it was impossible

Cretin, only wage inflation erodes debt. Only the public sector workers are on index linked pay and pensions, everyone in the private sector are having job cuts, pay cuts and overtime freezes.

[AtW]

Apart from the GDP-debt ratio rising to unsustainable levels thus leading to economic collapse in the long run.

Debt auctions are not for whole country debt, it's not a variable rate that country pays - just right now for some bonds rate will be high, better that then inflation that taxes everybody and keeps price permanently higher.

Debt is only eroded if salaries increase - right now inflation in UK is one sided: everybody pays more for essential stuff.

[OwlHoot]

Apart from the GDP-debt ratio rising to unsustainable levels thus leading to economic collapse in the long run.
Whereas inflation is good for a heavily-indebted population in that their debt is eroded faster.
FFS, you are more stupid than BB, I thought it was impossible

It's curious how people are often desperately anxious to be good at things they have no aptitude for, in AtW's case economics, even when they may have other talents they could put to far better use.

[Old Greg]

You really are almost as stupid as BlasterBates, hard though that seems almost impossible.
So you think that countries paying higher rates on their bonds has no effect on their citizens?

BB is actually one of the more intelligent posters here. He just has appalling judgement.

[sasguru]

Debt is only eroded if salaries increase -.

Cretin, only wage inflation erodes debt.

It's the 2 imbeciles tweedledum and tweedledee.
I'm curious - is there some masochistic streak that forces you two to advertise your stupidity to all and sundry?
It's OK for DP since he's a non-entity, but AtW has customers - no one can take you seriously as an MD if they read the crap you post.


I'll try to be succint: since debt is fixed in nominal terms, inflation erodes its real value.

HTH, BIDI since you two have all the economic nous of an amoeba.

[DimPrawn]

I'll try to be succint: since debt is fixed in nominal terms, inflation erodes its real value.


What is real value is incomes are falling? If income is fixed, it's real value is eroded also, so you have eroded income to pay eroded debt, therefore inflation has no effect on reducing it.

[AtW]

When people like sasguru get to run the countries it is no suprise then run them into the ground. No doubt some tweet at Bank of England also thinks the same - inflation will erode debts, nice position to say that when his pension pot is being topped up by £1.4 mln to £5.36 mln, FFS - FIVE MILLION QUID PENSION POT for an actor whose main job is to pretend he is independent of Treasury!

When salaries don't raise and inflation is on essential goods it means debt becomes more expensive because there is less cash to repay it.

It can only get cheaper for foreigners who have hard currency to pay for suddenly devalued assets.