Inflation - when is this going to end?

[ChicagoBlue]

The interest rate rises shouldn't be put on mortgages and rent as people have no choice but to pay those. Thousands becoming homeless will cost the government more, that's if they can find somewhere to house them.

Mortgage companies should be required to allow LONG TERM, FULL DURATION, FIXED INTEREST mortgages.

In the UK, the very short terms allowed for fixed rates, before they reset, creates a financial risk that most people cannot hedge. Financial conglomerates can.

I was recently (12-18mos ago) looking at a home that would have only required me to carry a mortgage for a short period…basically until I sold my current home, because I was buying without selling. Was offered a 1.99% APR for 15 yrs fixed!

Not only does that help me buy a house (and create significant economic activity), it was almost free money that would have led to us doing significant, immediate work on the house by holding back some of our equity from the sale and rolling the shortfall into a sub 2% mortgage.

In essence, the UK banks, after getting a public bailout, are having their cake and eating it, too, while screwing over their best long term customers!

Btw, I have NEVER ended up making my mortgage payment to the financial institution that wrote my mortgage, because they always sell it off to recycle their loan monies. FEES, FEES, FEES!! That’s how they make money…servicing the loan process and washing money THROUGH the system, which helps create continuous economic activity!

The financial game in the UK seems rigged AGAINST the retail home purchaser.

 

[Bluewonder]

We vaccinated our way out of the Covid crisis and your routine doesn’t change the facts. Yes Covid hurt us economically and we printed too much money but it was only when the Truss / Kwarsy mini budget was reversed (at the cost of at least £30bn) that the economy stabilised. It was their double act that truly damaged market confidence. It was an economic plan that had failed miserably in Central America 50 years ago but they went for it anyway.

What are your solutions as crying over spilt milk only gets us so far. How do we create the economic zeal that we were promised post Brexit. How do we get people to work hard to fill jobs? How do we reduce the consumption of non renewable energy? How do we get peole to grow more of their own food?

Not sure where you got the £30bn from but again, the Truss/Kwarteng budget impact was temporary and alleviated once the adults took control again

The number one priority should be an improvement in our trading relationship with the EU (I am assuming that rejoining at this stage is still political dynamite).

Secondly a fully developed and integrated service-based economy across the anglosphere would be worth pursuing.

Either or both of the above would ideally come with free movement of labour to help alleviate the tight labour market until the NHS backlog is dealt with.

Of course removing the present cartel of Tory dim-wits is also necessary to move to a more investment-backed economy, though some of the Truss/Kwarteng supply side reforms that were mooted would probably be helpful.

 

[i kne albert davy]

You’d get £525 a month between you on Universal Credit, assuming you have no disabilities.

? at a loss mate.

 

[Deleted member 77198]

Blame SAGE and their idiotic lockdowns.

You think British lockdowns from two years ago are causing inflation now?

 

[i kne albert davy]

You think lockdowns from two years ago are causing inflation now?

I'm fairly certain it's to much money chasing to few resources and goods, anything else is just deflection. In my opinion of of course I'm no fiscal genius like the Kwarteng/Truss combo.

 

[Deleted member 77198]

It absolutely did, it created the massive surge in demand that brought about inflation.

The impact of the Truss mini-budget was temporary only; gilt yields are now below where they were before the budget.

Lockdowns are their restriction on economic activity are the root cause of this inflation. The war has just made it worse.

The surge in demand in certain goods came from China going into lockdown, not Britain. So SAGE have nowt to do with it.

The world buys a great deal of stuff from China and there was a halt in buying from them. Australia completely stopped buying certain things from China and vice versa over political disputes. Anything that was imported/exported between the countries had greater tariffs put on them.

 

[Bluewonder]

You think British lockdowns from two years ago are causing inflation now?

Lockdowns en masse and accompanying monetary policy created inflation, yes.

 

[i kne albert davy]

Lockdowns en masse and accompanying monetary policy created inflation, yes.

I think you'll find a Russian attack on Ukraine followed by Oil and gas embargo's was a far great cause of the inflation problems the world now faces.

 

[paulchapo]

We’re you there?

What do you mean was I there? Read the thread I most certainly was.

 

[Bluewonder]

I think you'll find a Russian attack on Ukraine followed by Oil and gas embargo's was a far great cause of the inflation problems the world now faces.

I think you'll find that CPI was 5.5% in February, before the invasion, if you do some research.

I think you'll find that UK wholesale gas prices have been increasing since we came out of lockdown in summer 2021, if you do some research.

The war has obviously not helped.