Britain stuck with high inflation, meagre growth..

[sasguru]

Feels as if we're going around in circles here.

That usually happens when you post your bollux.
So are you in massive debt or not?
Because either you're right and you should act logically OR you're posting complete bulltulipe.
Which is it, tulip for brains?

[EternalOptimist]

What we are saying is, whatever you have, only put in as much as is needed to secure the property as the lowest mortgage rate.

What's left over, buy other physical assets.

Roll forward 10 or 20 years, and your mortgage is paid off and you have lots of very valuable assets to sell.

Those who kept the cash in the bank will be using it to buy a loaf of bread.

Negative real interest rates rob those that have to pay those that don't.

I understand all that , and I did it differently, without debt or risk.

[Robinho]

I have a lot of money in precious metals.

Looking to get a mortgage in a year's time.

[Mich the Tester]

I have made predictions based on the government policies i am complaining about. Feels as if we're going around in circles here.

No, no. You have made predictions based on thinking you know what the effects of government policies will be. I'm saying you don't know what the effects will be. Neither do the government; they're just following the same basic logic as you, but acting differently to how you would choose to act.

I certainly don't know what's going to happen but my logic is; we don't know what's going to happen to inflation, house prices, interest rates etc and I'd rather have a little bit in the bank than owing money to somebody. If I'm wrong I miss out on the chance to buy a huge mansion and pay very little for it and maybe my savings aren't worth much. If I'm right I prevent myself (not 100%, but that's another matter) becoming poor and indebted. Not much of a sacrifice to make for peace of mind. I agree that the current policies with very low interest rates and lots of QE are making saving less attractive, and I think they're undermining people's desire and ability to save for old age; that's not a good thing. But I'm not sure that falsely expanding the money supply will lead to higher house prices.

By the way, I don't want a huge house. I grew up in a big old house, visited many others and concluded that big old houses are actually a bit tulip.

[sasguru]

I have a lot of money in precious metals.

Looking to get a mortgage in a year's time.

You must extremely thick then, because according to you it's stupid not to have a huge debt.
So you admit you're stupid then?

[DimPrawn]

No, no. You have made predictions based on thinking you know what the effects of government policies will be. I'm saying you don't know what the effects will be. Neither do the government; they're just following the same basic logic as you, but acting differently to how you would choose to act.

I certainly don't know what's going to happen but my logic is; we don't know what's going to happen to inflation, house prices, interest rates etc and I'd rather have a little bit in the bank than owing money to somebody. If I'm wrong I miss out on the chance to buy a huge mansion and pay very little for it and maybe my savings aren't worth much. If I'm right I prevent myself (not 100%, but that's another matter) becoming poor and indebted. Not much of a sacrifice to make for peace of mind. I agree that the current policies with very low interest rates and lots of QE are making saving less attractive, and I think they're undermining people's desire and ability to save for old age; that's not a good thing. But I'm not sure that falsely expanding the money supply will lead to higher house prices.

My dad was like that. A zero risk person, always money in the bank, would never take on a mortgage due to "risk" so rented all his life.

Never made any wealth or owned anything of value.

I take the opposite view, get rich or die tryin'

[Mich the Tester]

I have a lot of money in precious metals.

Looking to get a mortgage in a year's time.

What makes those metals 'precious'?

[EternalOptimist]

What makes those metals 'precious'?

we could speculate on that all day

[DimPrawn]

What makes those metals 'precious'?

They cannot be conjured from thin air, and for 5000 years they have always had value.

We need another $300trn to pay some debts. Oh look, my central bank computer now has an extra $300trn. How weird?

Same as a classic Ferrari never turns a wheel, but doubles in "value" every few years.

[Robinho]

But I'm not sure that falsely expanding the money supply will lead to higher house prices.

Then you're thick.