Britains economical future - What do you think? Watch

mmaattrriixx
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hypocriticaljap
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4.4% is nothing!

I remember 15% interest rates and mortgages fixed at 10% cos people thought it was a good deal.
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Quady
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(Original post by mmaattrriixx)
Yo!

I am a bit worried about the economical future of Britain, the inflation is up to 4,4% now!

Do you think the economy of Britain will be stable soon? And good in a few years?

What do you all think? Will we fall or will the economy bounce back positive?

Todays news about the inflation to 4,4%:
http://www.guardian.co.uk/business/2...daches-osborne

CHEERS

//Mmaattrriixx

Higher inflation shows the economy has problems how exactly?
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laeof
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(Original post by Quady)
Higher inflation shows the economy has problems how exactly?
Because prices rise too quickly, fuel goes up quicker meaning it's harder for people to live. When that happens, less spending etc so businesses suffer (along with their increasing costs).

2% is the target, so 4% isn't great....but it's not emergency news or anything...but it is putting pressure on the Bank of England to raise interest rates again.

And the pound weakens against other currencys.

Wall street crash inflation was so bad, people were getting their wages and throwing the money out of the windows to their wives to buy bread because prices went up so quickly....You'd get a cup of coffee, drink it and then go to pay and the price had gone up.

In the end people were burning their notes because it was cheaper than buying wood/heating.
Last edited by laeof; 7 years ago
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Jmzie-Coupe
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Shouldnt it be economic future not economical?
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hypocriticaljap
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(Original post by AshleyT)
Because prices rise too quickly, fuel goes up quicker meaning it's harder for people to live. When that happens, less spending etc so businesses suffer (along with their increasing costs).

2% is the target, so 4% isn't great....but it's not emergency news or anything...but it is putting pressure on the Bank of England to raise interest rates again.

And the pound weakens against other currencys.

Wall street crash inflation was so bad, people were getting their wages and throwing the money out of the windows to their wives to buy bread because prices went up so quickly....You'd get a cup of coffee, drink it and then go to pay and the price had gone up.

In the end people were burning their notes because it was cheaper than buying wood/heating.
LOL!
And you think what is happening here is anything like the wall street crash
In the 1970s we had 20%+ inflation here. We survived.
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Planar
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It depends if labour get in or not - there is a reason that the labour party has never had a reputation for economic competence.

edit: negging and providing no rebuttal is pathetic
Last edited by Planar; 7 years ago
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hypocriticaljap
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(Original post by Planar)
It depends if labour get in or not - there is a reason that the labour party has never had a reputation for economic competence.
From the early 70s average mortgage rates have been 8%. Most of that time we were governed by Tories. In 1988 Under the Tories we had 15% bank rate interest for a while.
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Cheesecakefactory
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It's going in the sh*tter and never coming back out.
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Quady
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(Original post by Cheesecakefactory)
It's going in the sh*tter and never coming back out.
Just as was said in the 40s and 70s, its nothing new, it has been known for decades.
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hypocriticaljap
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Here's a thought for you OP
Inflation is not necessarily your enemy
Low interest rates are not necessarily your friend.
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yoyo462001
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Economical :lolwut:

Either way the long run inflation expectations of inflation (and most likely projected) won't be running at 4% but like 2%, the target rate. Wage contracts, probably the most important aspects are only rising about 2.2% per annum which means people don't think inflation will stay high forever and that this is no more than an inflation spike.

Either way, don't panic and if you do, panic rationally.
Last edited by yoyo462001; 7 years ago
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Iorek
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It probably will not be Great Britain again anytime soon.

Probably will remain a nation of the haves and the have-nots... already showing a lot of signs of it, just look at all the expensive housing and how most of them never really lost much value in the downturn.... with few exceptions of course.

Inflation, BoE is in a very tight spot on this one, they can't really control it by raising interest rates too much as it would mean a major housing crisis and the other issue is credit spending is still required to keep the money moving.

Currency, it's just weak right now.... doesn't have to be as Britain isn't a manufacturing nation and the services industry doesn't really require a low currency.... however it a strong Pound isn't really necessary either and may even be beneficial especially in attracting new foreign investments and also keeping the education sector attractive to international students.

Government debt.... I highly doubt even with all the spending cuts that anything is going to work.
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berty121023
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i'm thinking very few of you do economics. i look at some of the above comments and cry due to the ignorance/lack of understanding that some people have!
we will not have fast growth due to the suicidal cuts george insists on making. for a detailed analysis of his foolishness, read the work of paul krugman.
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Fusion
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Inflation erodes debt, so don't think the current government are having sleepless nights over 4.4% (index link your savings!!)
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Quady
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(Original post by berty121023)
i'm thinking very few of you do economics. i look at some of the above comments and cry due to the ignorance/lack of understanding that some people have!
we will not have fast growth due to the suicidal cuts george insists on making. for a detailed analysis of his foolishness, read the work of paul krugman.
And cuts lead to inflation?
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A15hat
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Whether we want to admit it or not, the cuts will reduce the deficit. However, the inflation may be due to factors such as high levels imports. Things will get worse before they get better, I just feel that the government is being slightly stupid about cuts that are to be made, either way they have to be done. Usually, if inflation is high the interest rate is used as a tool to reduce it, though we need people to inject money into the economy to promote growth hence the interest rate being at 0.5%.
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hypocriticaljap
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I repeat, anyone who thinks bank rates and inflation are currently high is living in a fool's paradise.
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Planar
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(Original post by hypocriticaljap)
From the early 70s average mortgage rates have been 8%. Most of that time we were governed by Tories. In 1988 Under the Tories we had 15% bank rate interest for a while.
Thatcher stopped stagflation. John Major bequeathed unto Blair a healthy economy with good prospects. They turned Britain from the sick man of Europe to one of the wealthiest and most successful nations in the world. Labour bowed to the unions, and inflation went to 25%. About 30 years after that, they leave power having racked up a massive deficit. Thatcher sorted a mess which was mostly Labour's the first time, and now Cameron will have to sort one which is all Labour's the second time.
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mmaattrriixx
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Check budget 2011 released by George Osbourne, will go towards right direction they say 2012 or 2013.
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