Reply to: Inflation rising, stocks down - end of housing boom?

[OwlHoot]

It only needs one stimulus. The fact is the property market is not sustainable. I can't wait...

Yup, and the Government in their infinite wisdom and foresight are providing just such a stimulus - seller's packs, due to come into effect on a certain date (not sure exactly when). Obviously sellers will be frantic to sell before having to pay £1000 to provide one of these, and after that date sales will plummet.

[NoddY]

You're talking about the fractional reserve banking system and the fiat currency (GBP) - once you understand how it works, you'll know it's the biggest scam going. I see it as part of an education process. A long time ago, I used to think retail banks (Barclays, etc) were decent companies that would look after you and not actively try to scam you. Now I know that to be untrue. It's the same thing with central banks and bankers, only on a bigger scale. Inflation is only 2% hah! What most people think of as inflation is ~8% (i.e. the growth in money supply M3/M4 (10%) minus GDP growth (2%))

Yes, I was talking about fractional-reserve banking.

For most people (i.e. those who have to work) the only true measurement of 'cost' is the amount of labour expended. Money is an artificial construct that obscures the amount of effort required to obtain something.

[stackpole]

but my point is that the precise measurement of increase in paper money is higher than the % they want inflation to be reported as therefore it cannot possibly be used in the inflationary basket calculation.

I know that, and it was bobhope who made that point first. I wish you'd read my posts properly.

Who do you mean by "they"? Presumably you mean the government.

Well, MY point has always been clearly stated - if this figure is more accurate, and it is in the public domain, why don't the opposition press use it? They have no reason not to.

I suspect that this precise calculation does not indicate true inflation after all.

[Numptycorner]

a spot of Milton Friedman for your sad-do bedtime reading maybe?!
He was into all that M3/M5 moneterist s**t.

He was also proven wrong

[ASB]

What most people think of as inflation is ~8% (i.e. the growth in money supply M3/M4 (10%) minus GDP growth (2%))

True enough. But since M0, M2 and M4 all include bank and building society deposits you have effectively reclassified saving as inflation. That doesn't seem quite right somehow. in effect surely there are non inflationary reasons for an increase in broad money?

[Hart-floot]

quite right bogey man, I have no economic qualifications (and only a douglas in computer science at that!) and am probably talking sheeeet on this subject

moral of the story folks, do your own research

would anybody else care to elaborate on these subjects, to be honest Stacker I am surprised you are asking these questions as I always took you to be a worldy member of the congregation.

Milan.

a spot of Milton Friedman for your sad-do bedtime reading maybe?!
He was into all that M3/M5 moneterist s**t.

[deforce]

their is more to this stuff and who is pulling the strings than immediately meets the eye

Milan.

Agreed, now say no more

[milanbenes]

quite right bogey man, I have no economic qualifications (and only a douglas in computer science at that!) and am probably talking sheeeet on this subject

moral of the story folks, do your own research

would anybody else care to elaborate on these subjects, to be honest Stacker I am surprised you are asking these questions as I always took you to be a worldy member of the congregation.

Milan.

[bogeyman]

it cannot possibly be used in the inflationary basket calculation

Milan.

Phhhht ! I think you're an inflationary basket case old bean.

Where did you obtain your degree in economics, by the way?

[milanbenes]

but my point is that the precise measurement of increase in paper money is higher than the % they want inflation to be reported as therefore it cannot possibly be used in the inflationary basket calculation

Milan.

[stackpole]

the job for the rulers of the country is to remove anything from the inflationary measurement basket which rises in % higher than the % they want inflation to be reported as

hth

Milan.

But we aren't talking about the basket, we are talking about the precise measure.

[threaded]

That doesn't stack up as a reason. For a start, it isn't in the interest of the tory press to keep it quiet.

Erm, you don't read the tory press then I take it?

One paper have their own measure of inflation, and gives a similar result to that mentioned earlier in this thread (about 8%).

HTH

[milanbenes]

it is if they are being told to tow the line

wheels within wheels my friend

their is more to this stuff and who is pulling the strings than immediately meets the eye

Milan.

[milanbenes]

the job for the rulers of the country is to remove anything from the inflationary measurement basket which rises in % higher than the % they want inflation to be reported as

hth

Milan.

[stackpole]

because then everybody would know the truth, we can't have that can we.

That doesn't stack up as a reason. For a start, it isn't in the interest of the tory press to keep it quiet.