The cost of living!

[ArchieG]

If central banks increase the money supply, it can create inflation. The worst possible scenario for a central bank is that its quantitative easing strategy may cause inflation without the intended economic growth. An economic situation where there is inflation, but no economic growth, is called stagflation.

Another potentially negative consequence of quantitative easing is that it can devalue the domestic currency. While a devalued currency can help domestic manufacturers because exported goods are cheaper in the global market (and this may help stimulate growth), a falling currency value makes imports more expensive. This can increase the cost of production and consumer price levels.

https://www.investopedia.com/terms/q/qu ... easing.asp



We don't have a lot of experience with QE on this planet. The Japanese first did it about 20 years ago.


But even without the experience, most of us fundamentally understand that making money out of thin air to buy investment products is fraught with danger.

If we could just print forever, we could stop paying taxes..

True as all that may be, the horse has already bolted. Mucking around with the stable door is futile

[Rolluplostinspace]

If central banks increase the money supply, it can create inflation. The worst possible scenario for a central bank is that its quantitative easing strategy may cause inflation without the intended economic growth. An economic situation where there is inflation, but no economic growth, is called stagflation.

Another potentially negative consequence of quantitative easing is that it can devalue the domestic currency. While a devalued currency can help domestic manufacturers because exported goods are cheaper in the global market (and this may help stimulate growth), a falling currency value makes imports more expensive. This can increase the cost of production and consumer price levels.

https://www.investopedia.com/terms/q/qu ... easing.asp




But even without the experience, most of us fundamentally understand that making money out of thin air to buy investment products is fraught with danger.

I knew you'd get there in the end.

[Maddog]

If central banks increase the money supply, it can create inflation. The worst possible scenario for a central bank is that its quantitative easing strategy may cause inflation without the intended economic growth. An economic situation where there is inflation, but no economic growth, is called stagflation.

Another potentially negative consequence of quantitative easing is that it can devalue the domestic currency. While a devalued currency can help domestic manufacturers because exported goods are cheaper in the global market (and this may help stimulate growth), a falling currency value makes imports more expensive. This can increase the cost of production and consumer price levels.

https://www.investopedia.com/terms/q/qu ... easing.asp



We don't have a lot of experience with QE on this planet. The Japanese first did it about 20 years ago.


But even without the experience, most of us fundamentally understand that making money out of thin air to buy investment products is fraught with danger.

If we could just print forever, we could stop paying taxes..

True as all that may be, the horse has already bolted. Mucking around with the stable door is futile

It's more of case of the stable is on fire because someone poured gas all over it and lit it.

First, people need to understand why the stable is on fire (that's a huge problem).

Second, once they understand that it's not Brexit, greedy corporations or the "other" party. They need to understand the cure. Much of the cure will come from an informed constituency not being so dependent on the "juice" of easy money.

[Maddog]

If central banks increase the money supply, it can create inflation. The worst possible scenario for a central bank is that its quantitative easing strategy may cause inflation without the intended economic growth. An economic situation where there is inflation, but no economic growth, is called stagflation.

Another potentially negative consequence of quantitative easing is that it can devalue the domestic currency. While a devalued currency can help domestic manufacturers because exported goods are cheaper in the global market (and this may help stimulate growth), a falling currency value makes imports more expensive. This can increase the cost of production and consumer price levels.

https://www.investopedia.com/terms/q/qu ... easing.asp




But even without the experience, most of us fundamentally understand that making money out of thin air to buy investment products is fraught with danger.

I knew you'd get there in the end.

The QE was something new (in the US) in 2009 or so. I'll admit that I lumped it into FRB (fractional reserve banking) like I leaned about when I studied economics on an abacus.

I was long gone out of college when Bernanke borrowed that trick from the Japanese.

Just goes to show we need to keep on learning.

[Stooo]

"The Bank of England is poised to raise interest rates on Thursday amid growing concern over the pressure on households from high inflation in Britain’s cost of living crisis.

City economists widely expect the central bank to increase its key rate from 0.25% to 0.5% in response to inflation hitting levels not seen for almost 30 years, with financial markets suggesting a 90% chance of an increase in borrowing costs.

From milk to crisps: why the price of basic food items is rising
With pressure mounting on households from soaring energy bills and the rising cost of a weekly shop, several leading analysts expect that the Bank’s nine-member monetary policy committee (MPC) will vote unanimously for a rise in rates.

It comes after the official inflation rate reached 5.4% in December, the highest level since March 1992, driven by soaring gas and electricity prices and the higher cost of food, clothes and footwear. The Bank has warned that inflation could peak at close to 6% by April, three times the 2% target rate set by the government."

https://www.theguardian.com/business/20 ... takes-toll



Look on the bright side. It's not as bad as in the US, because the BofE didn't go quite as crazy with the quantitative easing.

In any event, central banks everywhere are trying to unwind the damage, while politicians and poorly informed or deliberately dishonest forum posters try to blame things that have nothing to do with this.

On top of the NI tax increase, the raising of the energy price cap tomorrow and the inflation of often 100% from five years ago on basic essentials.

Show me the bright side.

[ArchieG]

"The Bank of England is poised to raise interest rates on Thursday amid growing concern over the pressure on households from high inflation in Britain’s cost of living crisis.

City economists widely expect the central bank to increase its key rate from 0.25% to 0.5% in response to inflation hitting levels not seen for almost 30 years, with financial markets suggesting a 90% chance of an increase in borrowing costs.

From milk to crisps: why the price of basic food items is rising
With pressure mounting on households from soaring energy bills and the rising cost of a weekly shop, several leading analysts expect that the Bank’s nine-member monetary policy committee (MPC) will vote unanimously for a rise in rates.

It comes after the official inflation rate reached 5.4% in December, the highest level since March 1992, driven by soaring gas and electricity prices and the higher cost of food, clothes and footwear. The Bank has warned that inflation could peak at close to 6% by April, three times the 2% target rate set by the government."

https://www.theguardian.com/business/20 ... takes-toll



Look on the bright side. It's not as bad as in the US, because the BofE didn't go quite as crazy with the quantitative easing.

In any event, central banks everywhere are trying to unwind the damage, while politicians and poorly informed or deliberately dishonest forum posters try to blame things that have nothing to do with this.

On top of the NI tax increase, the raising of the energy price cap tomorrow and the inflation of often 100% from five years ago on basic essentials.

Show me the bright side.

It is beginning to look a bit like cricifixion.

[Maddog]

There is no bright side to run away inflation based on too much debt.

What's the fucking bright side of inflation anywhere?

I guess the bright side is folks may learn about run away debt and spending, but I'm not optimistic.

[Rolluplostinspace]

"The Bank of England is poised to raise interest rates on Thursday amid growing concern over the pressure on households from high inflation in Britain’s cost of living crisis.

City economists widely expect the central bank to increase its key rate from 0.25% to 0.5% in response to inflation hitting levels not seen for almost 30 years, with financial markets suggesting a 90% chance of an increase in borrowing costs.

From milk to crisps: why the price of basic food items is rising
With pressure mounting on households from soaring energy bills and the rising cost of a weekly shop, several leading analysts expect that the Bank’s nine-member monetary policy committee (MPC) will vote unanimously for a rise in rates.

It comes after the official inflation rate reached 5.4% in December, the highest level since March 1992, driven by soaring gas and electricity prices and the higher cost of food, clothes and footwear. The Bank has warned that inflation could peak at close to 6% by April, three times the 2% target rate set by the government."

https://www.theguardian.com/business/20 ... takes-toll



Look on the bright side. It's not as bad as in the US, because the BofE didn't go quite as crazy with the quantitative easing.

In any event, central banks everywhere are trying to unwind the damage, while politicians and poorly informed or deliberately dishonest forum posters try to blame things that have nothing to do with this.

On top of the NI tax increase, the raising of the energy price cap tomorrow and the inflation of often 100% from five years ago on basic essentials.

Show me the bright side.

He did explain what the bright side was and that was our shit aint quite as deep as his shit.

[Stooo]

There is no bright side to run away inflation based on too much debt.

What's the fucking bright side of inflation anywhere?

I guess the bright side is folks may learn about run away debt and spending, but I'm not optimistic.

Debt to who?

[Stooo]

It is beginning to look a bit like cricifixion.

Whatever one of those is...

The lack of three meals and three and a half percent of the population is all it takes from what I understand.

I have no idea why the government is doing this.

[Rolluplostinspace]

There is no bright side to run away inflation based on too much debt.

What's the fucking bright side of inflation anywhere?

I guess the bright side is folks may learn about run away debt and spending, but I'm not optimistic.

Debt to who?

The public in the western world and especially so in the US/UK are in record debt for just about everything you can get in debt for so from there it's not difficult t figure out who the public owe.
Then those companies who the public owe are in massive debt to banks and credit houses.
Governments are in debt on a scale that dwarfs anything in history.
They owe pension funds insurance companies banks investment houses and so on.
Some domestic banks will probably collapse this year in Spain Italy Germany because they are
in so much debt and on it goes but who are we in debt too?
I'm in no debt.

[Stooo]

There is no bright side to run away inflation based on too much debt.

What's the fucking bright side of inflation anywhere?

I guess the bright side is folks may learn about run away debt and spending, but I'm not optimistic.

Debt to who?

The public in the western world and especially so in the US/UK are in record debt for just about everything you can get in debt for so from there it's not difficult t figure out who the public owe.
Then those companies who the public owe are in massive debt to banks and credit houses.
Governments are in debt on a scale that dwarfs anything in history.
They owe pension funds insurance companies banks investment houses and so on.
Some domestic banks will probably collapse this year in Spain Italy Germany because they are
in so much debt and on it goes but who are we in debt too?
I'm in no debt.

As I say, debt to who?

[Rolluplostinspace]

2008 and 8's global debts haven't been dealt with yet and in fact they have been massively added to again and again.
This level f debt is impossible to sustain.
There ae no answers no ways out.
In comes the great reset which I think we all need to start researching and understanding as best we can because the whole global thing will just collapse at some point with the gentlest of nudges.
I reckon despite all the complaints we in the west have lived the dream post WW2.
Every thing has been a breeze.
So much comfort so much excess so much safety and security the very thought of the whole thing crashing around our ears is near impossible to imagine but we really aren't doing anything in a sustainable manner.
When we arrive at a point where lying and deception are brazenly published and encouraged you know the whole thing is rotten on the inside.
The 21st century wasn't supposed to be like this.

[Stooo]

2008 and 8's global debts haven't been dealt with yet and in fact they have been massively added to again and again.
This level f debt is impossible to sustain.
There ae no answers no ways out.
In comes the great reset which I think we all need to start researching and understanding as best we can because the whole global thing will just collapse at some point with the gentlest of nudges.
I reckon despite all the complaints we in the west have lived the dream post WW2.
Every thing has been a breeze.
So much comfort so much excess so much safety and security the very thought of the whole thing crashing around our ears is near impossible to imagine but we really aren't doing anything in a sustainable manner.
When we arrive at a point where lying and deception are brazenly published and encouraged you know the whole thing is rotten on the inside.
The 21st century wasn't supposed to be like this.

Who is the money owed to?

I'm into HSBC on the credit card for a few quid but who is owed this vast and unimaginable sum of money?

[Rolluplostinspace]

2008 and 8's global debts haven't been dealt with yet and in fact they have been massively added to again and again.
This level f debt is impossible to sustain.
There ae no answers no ways out.
In comes the great reset which I think we all need to start researching and understanding as best we can because the whole global thing will just collapse at some point with the gentlest of nudges.
I reckon despite all the complaints we in the west have lived the dream post WW2.
Every thing has been a breeze.
So much comfort so much excess so much safety and security the very thought of the whole thing crashing around our ears is near impossible to imagine but we really aren't doing anything in a sustainable manner.
When we arrive at a point where lying and deception are brazenly published and encouraged you know the whole thing is rotten on the inside.
The 21st century wasn't supposed to be like this.

Who is the money owed to?

I'm into HSBC on the credit card for a few quid but who is owed this vast and unimaginable sum of money?

I just answered that but to make it simple there's a vicious and massive circle of debt where almost all the debtors I mentioned owe money to each other.
At the end of the day everything is owed to the few at the top of the pyramid which is a handful of banking families.
You don't like answers like that though and start talking about conspiracy theorists.
The money goes forever upward it never comes down.
We do not live in an economically benign world.
It is vicious dishonest selfish and in many areas many times criminal.
We are now at the point where the world is saturated in debt.
We are at the point where there are now no fixes.
We are in a trap.
We are in a death spiral that some may see as mismanagement or a series of mistakes.
I see it as the coming to fruition of well laid plans.