Deflation of the economy (shush, whisper it)

[Old Git Racing]

I predict 2014 will be the year when they try to prevent deflation. After all who does inflation benefit? Shareholders, rich bastards etc. Whereas it would benefit 80% of the population.
Prices are coming down because your average geezer has no money to spend, it being eroded by made up taxes, hidden taxes, no real wage rises in the last 4 years (except for MP's, bankers), benefit cuts etc. The rise of Aldi and Farm Foods.
Hence the call for a living wage all of a sudden instead of a minimum wage. Interest rates will slowly creep up now (as indicated by Mark Carney) to control inflation, i.e. prevent deflation.
God forbid we should have less than 2% inflation, the rich bastards might have to start contributing.

OGR
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2022 Tiger Sport 660 2019 Street Twin 2003 K3 gixxer 1000 1998 Srad 600 track hack

[smegballs]

With all this "living wage" stuff, what is to stop businesses just putting up their prices at point of sale. Like the story about everyone getting a million quid magicked into their bank overnight, the next morning you are buying a loaf of bread for 20 grand...

Also surely a rise in minimum wage will cause employers to be even more picky about who they employ. If the least I can pay someone is now 8 quid an hour, you can be damn sure that I'll be vetting everyone with a fine-tooth comb to get the maximum output possible for my £8/h.

I would expect the people right at the bottom, who the minimum wage is ostensibly to help, will lose out; as they are the most likely to have poor qualifications or a minor criminal charge etc etc. Why would you hire anyone with so much as a tiny blemish on their record, when there are hordes of people without such transgressions looking and competing for limited work.

[Pigeon]

[fatpies]

Ha you have it backwards.

The central bank's job is to create inflation.

The government have absolutely no intention of controlling inflation. They cause it and profit from it.

Each £1 has a % debt attached to it, this is the banker cut, as every £ that exists doesn't belong to you, even if it is in your pocket. It belongs to the bank you're renting it.

Inflation is the rent you pay.

This is why luddite theory doesnt work, the lower cost of production is stolen by the bank.

So why would they prevent it?


Also cash never increases in purchasing power. It always decreases in purchasing power ALWAYS. This is part of the design of fiat inflationary money. Cash halves in purchasing power every 10 years. Currently cash halves in purchasing power every 7.5 years because of active inflation and money printing.

My 400g block of cheese used to be £3, it is now £4 and only 320grammes. This was a 2 year price difference.

The horse meat thing, it was an inflation story, price went up so they put in cheaper substitutes.

Ask your dad how much a pint of beer was in 1970, ask your grandad how much it was.

Consider how many of whatever you could buy for £1.

Around 2002 it was 64p a litre its now £1.28.

Can of coke was 35p now 85p
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"It's easy to attack and destroy an act of creation. It's a lot more difficult to perform one"

[Kickstart]

[Pigeon]

[slowlydoesit]

[Souleh]

[fatpies]

[Kickstart]

[Tungtvann]

So typical, I've been a saver for years now, loads of money doing fuck all. When I'm ready to buy a house in a year or so, interest rates will jump and I'll be doubly fucked because I have no savings and loads of debt.

[N cee thirty]

[Ribenapigeon]

[slowlydoesit]

[Ribenapigeon]

[Mark_F]

Deflation wouldn't benefit 80% of the population at all.

Prices can only go down so far before wages need to drop accordingly, or companies go bust.

Ok you can buy more for your money in the short term, but when your wages fall (or your job goes), that mortgage or credit card becomes nigh on impossible to pay off.

The people who would benefit the most are the "rich bastards" (who don't have all their wealth tied up in shares) who will be able to buy so much more with their vast wealth! When many houses get repossessed, flooding the market, who is it that has the cash ready to buy them all up cheap?

Normal folk with savings and no debts whatsoever (or a very small proportion left on their mortgage) may make some small gains, but will they feel secure enough to spend with their wages falling or disappearing altogether?

Do you really want deflation?

[smegballs]