Inflation

[jowwy]

Furlough should have been paid at a purely subsistence level with a low monthly cap, not at the level that allowed people with reduced outgoings due to being at home, to save it up as free spending money. It was way too generous, and is at least partly to blame for the current inflation spiral.

So at what level??? Why do you think people just saved it up, rather than pay their mortgages, electric, gas, food etc etc etc

 

[gbb]

The problem is people mortgage themselves up to the hilt when Interest rates are low and are quite happy that others are earning bugger all on any money they have been able to save, but as soon as interest rates then start to creep up they cry foul. You should always leave yourself some leeway for when not if things change.

I remember 15% interest rates now that did make your eyes water a bit.

We always have these swings and roundabouts and people just don't seem to prepare for them.

The UK isn't the only country suffering at the moment. It's happening all over.

Of course there are some who will exploit the situation but on the whole, we have to live with it.

Bang on. Look back in my lifetimes, ive seen about 3 boom and busts, its a cycle we (everyone) has to live with but you can prepare for or at least have one eye on. Every major financial decision we make has a backup plan. Ive never earned big big money, indeed for 23 years earned very modest wages but as a couple, we worked hard, saved, used credit sensibly and have a net worth that belies our modest lives from the outside.
Its not financial wizardry, im actually not very good at big finance, but be good at small finance,look after the pennies, the pennies look after themselves as they say.
But we live in a world of want...its no wonder people get in the states they do.

 

[gbb]

Consider what happened during the pandemic. The supply of consumer goods shrank massively due to factory shutdowns and logistics disruption, and at the same time governments all over the world started handing out free welfare money to people with no travel to work costs and little stuff available to purchase.
Simple economics is that more money chasing a reduced supply of products equals inflation. Furlough was printed money. The money supply was artificially increased without any underlying natural increase in the size of the real economy. Once the pandemic restrictions were lifted all the furlough cash that had been stockpiled started to get spent on consumer durables, holidays, and entertainment . The problem was the shutdowns reduced the capacity of all these sectors to supply the goods and services the punters craved, so prices soared.

Then you've got the West's reaction to Putin marching into Ukraine, which has made matters much worse than if they had kept their noses out and left it to Russia and Ukraine to slog it out. Without the West getting involved, it would all be over by now, less fighting, less destruction, and the oil price spike would have been far more subdued.

In principle, this is bang on according to an eminent economists video i watched. Over supply of money, undersupply if goods, inflation is absolutely inevitable, that was from the 1990s so its nothing new
Add in quantaitive easing over the last 20 years, exacibating the over supply of money, the pandemic and all its effects, the Russian invasion of Ukraine, 'local' incidents such as the Suez Canal blockage, its all so obvious with hindsight...pity the people running the worlds finances didnt act with some caution and have a little foresight eh ?

 

[gbb]

Furlough should have been paid at a purely subsistence level with a low monthly cap, not at the level that allowed people with reduced outgoings due to being at home, to save it up as free spending money. It was way too generous, and is at least partly to blame for the current inflation spiral.

At the risk of getting political i thought the same when the 80% payment was proposed...who's going to pay for all this ?...us, not now but eventually it will come home to roost, and maybe it has already.
Devil and the deep blue sea i suppose drove it, cut everything to minimise cost (furlough included) , it would have created a more instant bad scenario. I also remember saying (with some mirth) ...is this THE most benevolent Tory government that ever existed ?
Same as it did when one government spent spent spent in maybe the 90s, i clearly remember saying to my wife...we're all going to pay heavily for all this one day.

 

[Chislenko]

I couldn't believe the inflation on the new tyres I just bought.......120 psi!!

 

[raleighnut]

I couldn't believe the inflation on the new tyres I just bought.......120 psi!!

I've got some really silly tyres. Continental 'Grand Prix' Supersonic 18mm x 700c they need 160psi to avoud 'pinch flats' max is 170

 

[Chislenko]

I've got some really silly tyres. Continental 'Grand Prix' Supersonic 18mm x 700c they need 160psi to avoud 'pinch flats' max is 170

18mm, the "modern day" cyclists will be up in arms!!

I still run 23mm and am constantly batting away questions as to why!

 

[gbb]

seems the most appropriate place to post this but Xmas shopping, always expensive, highlights just how expensive things have gotten.
Easily £200 spent today in three shops, I was complaining for instance one item £2, I was absolutely sure used to be £1, my wife came out of one shop for some decorations saying, I'm just not paying those prices for something as simple as decorations, the prices are ridiculous. A leg of lamb is just out of reach for most people on a normal budget, the list goes on and on.
And this will be controversial, people going on strike for more money are just going to make things worse for those that don't have union backing....there, I said it

 

[Chislenko]

And this will be controversial, people going on strike for more money are just going to make things worse for those that don't have union backing....there, I said it

Not controversial for me, something I have been saying for decades.

 

[jowwy]

seems the most appropriate place to post this but Xmas shopping, always expensive, highlights just how expensive things have gotten.
Easily £200 spent today in three shops, I was complaining for instance one item £2, I was absolutely sure used to be £1, my wife came out of one shop for some decorations saying, I'm just not paying those prices for something as simple as decorations, the prices are ridiculous. A leg of lamb is just out of reach for most people on a normal budget, the list goes on and on.
And this will be controversial, people going on strike for more money are just going to make things worse for those that don't have union backing....there, I said it

I dont have union backing were i work, but i support the strikes 100%…….

 

[PaulSB]

seems the most appropriate place to post this but Xmas shopping, always expensive, highlights just how expensive things have gotten.
Easily £200 spent today in three shops, I was complaining for instance one item £2, I was absolutely sure used to be £1, my wife came out of one shop for some decorations saying, I'm just not paying those prices for something as simple as decorations, the prices are ridiculous. A leg of lamb is just out of reach for most people on a normal budget, the list goes on and on.
And this will be controversial, people going on strike for more money are just going to make things worse for those that don't have union backing....there, I said it

How about if those with wealth and higher incomes pay higher taxes to allow the country to pay nurses, ambulance workers and all other essential staff a decent wage? Perhaps they could buy a leg of lamb.

We were happy to clap them a couple years back. Perhaps we should put our hand in our pocket and reward these people properly.

I'm 100% behind the strikes. Enough is enough.

 

[SpokeyDokey]

Mod note:

This is getting a tad too political so can we please call a halt at this juncture.

These issues are possibly/probably being talked about in NCAP if you are interested in furthering the political discussion.

Many thanks in advance for your co-operation.

 

[PaulSB]

Mod note:

This is getting a tad too political so can we please call a halt at this juncture.

These issues are possibly/probably being talked about in NCAP if you are interested in furthering the discussion.

Many thanks in advance for your co-operation.

Apologies.