Reply to: Inflation and raising interest rates

[DimPrawn]

Gold to break $2,000/oz barrier - Telegraph

Who cares if inflation is 10% when you can double your money?

They say your first million is the hardest, well, looks like the 2nd one is going to be a piece of piss.

[milanbenes]

So a slowing economy and falling prices = deflation risk = quantative easing.

Stocks (especially solid dividend payers) and Gold/Silver will continue to do well.

It also means little pressure on home owners, so house prices will start to rise too.

if you are correct

then we've got nothing to worry about

party on guys

but why did Japan lose a decade with deflation

Milan.

[DimPrawn]

Panic Over.

BBC News - UK inflation rate falls to 4% in March

Phew!! That was close.
Back to work everyone.

The fall eases pressure on the Bank of England to raise interest rates.

So a slowing economy and falling prices = deflation risk = quantative easing.

Stocks (especially solid dividend payers) and Gold/Silver will continue to do well.

It also means little pressure on home owners, so house prices will start to rise too.

[shaunbhoy]

Panic Over.

BBC News - UK inflation rate falls to 4% in March

Phew!! That was close.
Back to work everyone.

[ChimpMaster]

It's quite clear to every man and his dog that the public is being manipulated. Who has gained from saving the banks? It's made to sound like we are the beneficiaries, but in fact we all know that it is us who are paying to keep the financial system afloat.

It would have been more painful but far, far quicker to just let the system unwind itself and let the banks go bust. A bit like an injection at the doctor's rather than contracting the disease.

So we'll pay. We'll pay in higher taxes, in lower wages, in cost-of-living increases, in higher interest rates, in rising unemployment. We'll pay in ever decreasing standards of living. It's like the 70s all over again.

I guess in the future we'll just be known as 'that generation'.

[doodab]

But the Chinese will start to notice the 50" LCD's stacking up in the corner Shirley? What will happen then?

Global Thermonuclear War.

Or an idealogical victory for global communism.

[gingerjedi]

The same day when China learns they can't put your 50" HD LCD screen together for less than £1.50 a hour. So in that case never.

But the Chinese will start to notice the 50" LCD's stacking up in the corner Shirley? What will happen then?

[scooterscot]

when are wages going to rise to finally compensate for everything else rising ?

Milan.

The same day when China learns they can't put your 50" HD LCD screen together for less than £1.50 a hour. So in that case never.

[milanbenes]

Something which is strange in the current scenario is,


for everybody,

prices of food are rising

prices of fuel are rising

prices for going out are rising

and now interest rates are going to start rising


but so far, as far as I can see, there has not been wholesale, I mean across the board wages inflation,

when is the wages inflation going to begin ?

when are wages going to rise to finally compensate for everything else rising ?

Milan.

[milanbenes]

Yep.

The global financial system ain't going to crash and we're not all rushing to make withdrawals.

What do you think.

Oh and morning to you too, young Benes.

What do I think ?

For me, the jury is out on this at the moment

Watching, working, waiting


You see, I won't feel that we can all relax until Joe Bloggs can get back to his comformatable
state of buying new plasma tv's every winter and holidaying on the Costa's in the summer.

Once Joe Bloggs is spending I'll feel more comfortable.

Until Joe Bloggs is spending, I will continue to wonder with uncertainty what is going on, and when is it going to end, while in parallel doing my best to keep myself in the highest paying graft which I can find and subsequently not squandering the rewards but parking them in vehicles which have the best possibility to have strong defenses against inflation while maintaining a balance of having a pleasant lifestyle for the Mrs, the wee ones and oneself.

That's what I think.

Milan.

[Churchill]

Morning Winston old bean,

are you implying that what is happening now will stop faith in the global banking system from being erroded ?


Milan.

Yep.

The global financial system ain't going to crash and we're not all rushing to make withdrawals.

What do you think.

Oh and morning to you too, young Benes.

[milanbenes]

Morning Winston old bean,

are you implying that what is happening now will stop faith in the global banking system from being erroded ?


Milan.

[Churchill]

and another I don't understand


all this money which is being printed and quantatively eased,why isn't it being used for infrastructure projects and creating employment and getting into the hands of the ones who drive the economy ?


Milan.

Because that wouldn't stop faith in the global banking system being eroded.

[milanbenes]

and another I don't understand


all this money which is being printed and quantatively eased,why isn't it being used for infrastructure projects and creating employment and getting into the hands of the ones who drive the economy ?


Milan.

[DimPrawn]

Apart from most major economies shutting down most of their manufacturing?

For example, most of the car factories in the UK put their workforce on short hours...

Takes quite a bit of oil to power all that machinery.

Demand for oil dropped about 10% globally during the short crash period at the end of 2008.

But if you believe oil demand fell 70% globally, then, hey, yeah it's all driven by a few car factories having a month off.