Inflation - when is this going to end?

Johnny Mars Bar said:
Interest rates going up by another 0.75%.

My economics is a little rusty, but when inflation is being caused by supply side constrictions as is the case at the moment, and people have comparatively little disposable income as it is, it seems to me that trying to cool the demand side through brutal interest rate increases will do more harm than good.

The price caps (read: government bailouts) on the supply side with energy will do a bit to help I suppose, particularly now they're applying it to businesses too. Assuming businesses do actually pass on some of this to consumers and not just continue jacking prices up.

A bit like covid though, it's just kicking the can down the road. We'll still have to pay for all this in the end.
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0.75% is across the pond. It’s hiked up by 0.5% in the UK.

I don’t think we will have to pay for it in the end. The government will just continue to refinance.

To reduce the real value of the government debt we’ll have higher inflation than we’ve been used to, to inflate the debt away by the debt becoming a smaller percentage of GDP.

We’ll continue to have low interest rates (in historical terms) and inflation will be kept higher than interest rates.

If you plan on keeping any cash in a savings account or fixed rate investments you’ll lose out.

Those that’ll do well will be those who take on debt to purchase assets that historically beat inflation over time.

Anyone with a mortgage will have seen the real value of that debt fall and their net worth in real terms will likely have done pretty well as house prices increased too.

I alluded to this at this start of thread, but it seemed nobody wanted to focus on that and instead focus on media headlines and start flapping and shit their beds.
 
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Johnny Mars Bar said:
Interest rates going up by another 0.75%.

My economics is a little rusty, but when inflation is being caused by supply side constrictions as is the case at the moment, and people have comparatively little disposable income as it is, it seems to me that trying to cool the demand side through brutal interest rate increases will do more harm than good.

The price caps (read: government bailouts) on the supply side with energy will do a bit to help I suppose, particularly now they're applying it to businesses too. Assuming businesses do actually pass on some of this to consumers and not just continue jacking prices up.

A bit like covid though, it's just kicking the can down the road. We'll still have to pay for all this in the end.
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I agree with you Johnny ! I also don’t understand reversing NI and tax cuts which in theory gives more disposable income to spend more.
Which is apparently the reason for inflation.
 
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Protein Junkie said:
I agree w

I agree with you Johnny ! I also don’t understand reversing NI and tax cuts which in theory gives more disposable income to spend more.
Which is apparently the reason for inflation.
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The twats refused to give pay rises to workers as it would increase inflation, but have affectively given a 50k pay rise to the rich. Fucking wankers.
 
Protein Junkie said:
I agree w

I agree with you Johnny ! I also don’t understand reversing NI and tax cuts which in theory gives more disposable income to spend more.
Which is apparently the reason for inflation.
Click to expand...
They aren’t going to spend it though are they, it’s going on bills, not going on the piss. The government must also be raking in an absolute fortune in tax as well, with petrol Sky high, food etc so VAT must be raking it in as well. Just as well really as they spending it on giving it to their mates in the energy industry.
 
What purpose does tax cuts hold for working class folk if they offer no respite from day to day inflationary pressures.

A tax payer with a 1385m tax code on a 1% reduction would only see a saving of £1.30p a week at a tenner an hour, so to call the savings negligable would be an understatement. I dont know maybe I have my sums wrong so humour me ?

I have a better idea, why not increase the tax rate by one or two percent and properly fund our NHS so that it can carry out the primary aim of providing health care and universaly free benefits to those desperatly in need.

Most working class folk cannot afford private health care, so have to rely soley on the NHS for primary care. I would even pay 5% more if it ensures we all have fair and prompt access to care rather than reduce it by 1%, which in the greater scheme of things is as much help as a chocolate fireguard.

There's something fuckity going on in the new eschelons of power and it doesnt smack at all of fair play.
I dont think I like this mini budget one little bit. That is all:
 
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Protein Junkie said:
I agree w

I agree with you Johnny ! I also don’t understand reversing NI and tax cuts which in theory gives more disposable income to spend more.
Which is apparently the reason for inflation.
Click to expand...

no.....no...... we can't give public sector workers and transport workers etc decent pay rises - THEY are inflationary. Reversing the NI increase and cutting taxes is cool and is in no way inflationary and in fact needed.
 
CME GBP Futures halted 15 minutes ago.

GBP/USD hit lowest ever recorded value.

Get ready.
 
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