CVByrne Posted August 16, 2023 Share Posted August 16, 2023 Just now, sidcow said: Plastered everywhere "our plan to tackle inflation is working". What **** plan? I want just one journalist to ask them what there **** plan is. The only thing governments can do to tackle inflation is keep the wage increases in their control below inflation. Other than that there's little they can do as inflation once it takes hold becomes a wage price spiral. prices go up, wages go up, prices go up again, wages go up again loop. Interest rate rises is the most effective tool and it's the BoE's job (not the governments) to control inflation. Link to comment Share on other sites More sharing options...
sidcow Posted August 16, 2023 VT Supporter Share Posted August 16, 2023 (edited) 8 minutes ago, CVByrne said: The only thing governments can do to tackle inflation is keep the wage increases in their control below inflation. Other than that there's little they can do as inflation once it takes hold becomes a wage price spiral. prices go up, wages go up, prices go up again, wages go up again loop. Interest rate rises is the most effective tool and it's the BoE's job (not the governments) to control inflation. I know the but the press continue to pass on the message that Sunak is busy in his anti inflation mine expending blood, sweat and tears to personally shovel tons of anti inflation magic dust up to the surface to save us all. Jeremy Hunt is pulling up the handcarts up the incline by hand, his biceps straining under the weight of all the dust god bless him. I shudder to think where inflation would be without their hard work and I thank the press for alerting the public to this hard work. Edited August 16, 2023 by sidcow Link to comment Share on other sites More sharing options...
Genie Posted August 16, 2023 Share Posted August 16, 2023 6.8%, still very high. I think it’s the energy costs coming out of the calculation making the biggest impact and little to do with anything the government have done. Link to comment Share on other sites More sharing options...
tinker Posted August 16, 2023 VT Supporter Share Posted August 16, 2023 Fuel prices creeping up again will have a knock on effect with inflation. It's doesnt take a high IQ to see what's fueling inflation when record profits are being announced. The most telling part of it all is the lack of any comment from anyone in the media to call this out. Link to comment Share on other sites More sharing options...
sidcow Posted August 16, 2023 VT Supporter Share Posted August 16, 2023 Just now, Genie said: 6.8%, still very high. I think it’s the energy costs coming out of the calculation making the biggest impact and little to do with anything the government have done. If they want a plan to tackle that, disconnect the price of electricity from gas and allow land based wind turbines and the price of electricity will fall sharply. That would save the public and companies a fortune in energy costs and massively boost environment saving heat pumps and EV's as the economics would be undeniable, saving the planet from dying and the UK from global fossil fuel shocks. But nope. Let's rely on the BOE putting up interest rates and claim victory for the plan. 1 Link to comment Share on other sites More sharing options...
blandy Posted August 16, 2023 Moderator Share Posted August 16, 2023 43 minutes ago, CVByrne said: The only thing governments can do to tackle inflation is keep the wage increases in their control below inflation. Other than that there's little they can do as inflation once it takes hold becomes a wage price spiral. prices go up, wages go up, prices go up again, wages go up again loop. Interest rate rises is the most effective tool and it's the BoE's job (not the governments) to control inflation. That’s not right, really. Government can choose to do many things. Ours chooses not to. Here are just a few things that government can do. Windfall tax on excessive profits. Price controls. Subsidise costs (like with gas). Reduce VAT rates and so on. Im not saying these are good or bad or even appropriate, but just that as @sidcow exposes (Kenny), the government is doing nothing whatsoever and has no “plan” to do anything other than try and keep public sector wages down and watch public services crumble. Interest rates are a poor tool. There’s a massive lag between rate rises and any impact each rise has. Only 28% of people have mortgages, and many of those are on fixed rates. Loans, businesses loans, government borrowing costs and the value of the pound are all affected much more rapidly, but not necessarily in a good way. Link to comment Share on other sites More sharing options...
Genie Posted August 16, 2023 Share Posted August 16, 2023 (edited) I suggested before that I think government backed high interest savings accounts would have a positive impact on inflation by taking money out of spending without it being diverted to the banks profits. The Tories won’t go for that for obvious reasons (see their thread title). Edited August 16, 2023 by Genie Link to comment Share on other sites More sharing options...
foreveryoung Posted August 16, 2023 Share Posted August 16, 2023 (edited) A pal of mine has finally give in to his £1400 a month mortgage and gone to the bank for the help they are supposed to be offering. Don't quote me, but I think he was saying, they have offered him a 3 month payment break which will end up costing him around another £6800 ontop of his 16 year mortgage, or pay 50% for 3 months, which is a extra £4000 ontop of the mortgage including interest, both will cost him more on his monthly payments, dont really sound like much help. Cheers Santander On another note, I would have expected Starmer to come out with a better plan to reduce the interest rates, will do him a world of good I would think. Edited August 16, 2023 by foreveryoung Link to comment Share on other sites More sharing options...
MakemineVanilla Posted August 16, 2023 Share Posted August 16, 2023 If the present inflation is driven by lack of supply then the government has two options; increase supply or reduce demand. Unfortunately they find themselves in a cleft stick, as they are party to the causes of the drop in supply with their various policies, both globally political and environmental, while actually being responsible for almost half of demand as they spend 46% of the GDP. They can't cut public spending because that is anathema, and so their only option is to screw joe public with high interest-rates and wait for us to reach our debt ceiling, and demand starts to fall. Recession is an obvious risk, as happened in the 1980s, which took over a year to recover from. Link to comment Share on other sites More sharing options...
desensitized43 Posted August 16, 2023 Share Posted August 16, 2023 I was gearing up to take a hit next December when I thought my 1.99% mortgage deal expired but just checked my account for the first time in over 12 months and my deal actually expires December 2025...happy days. Let's hope someone competant gets a grip of this shit in the next few years. 2 Link to comment Share on other sites More sharing options...
sidcow Posted August 16, 2023 VT Supporter Share Posted August 16, 2023 10 minutes ago, desensitized43 said: I was gearing up to take a hit next December when I thought my 1.99% mortgage deal expired but just checked my account for the first time in over 12 months and my deal actually expires December 2025...happy days. Let's hope someone competant gets a grip of this shit in the next few years. Same here. I'm taking the 2 year opportunity to overpay as much as I can afford so hopefully the hit is much smaller when I inevitably have to re-mortgage at a higher rate. Link to comment Share on other sites More sharing options...
Genie Posted August 16, 2023 Share Posted August 16, 2023 49 minutes ago, desensitized43 said: I was gearing up to take a hit next December when I thought my 1.99% mortgage deal expired but just checked my account for the first time in over 12 months and my deal actually expires December 2025...happy days. Let's hope someone competant gets a grip of this shit in the next few years. I have a little longer, Feb 26 before I am getting a new deal. I doubt I’ll see 1.39% again any time soon Link to comment Share on other sites More sharing options...
desensitized43 Posted August 16, 2023 Share Posted August 16, 2023 2 hours ago, Genie said: I have a little longer, Feb 26 before I am getting a new deal. I doubt I’ll see 1.39% again any time soon Well this is my second fixed rate. When we first moved in we were at 4.5% and we thought that was low at the time. If it settled back to that level I'd be happy. 1 Link to comment Share on other sites More sharing options...
Genie Posted August 16, 2023 Share Posted August 16, 2023 (edited) 5 minutes ago, desensitized43 said: Well this is my second fixed rate. When we first moved in we were at 4.5% and we thought that was low at the time. If it settled back to that level I'd be happy. I’m sure on my first house I got a 100% mortgage at about 6%. It went up about £20k in 2 years (bought at £120k, sold at £140k) so put that down as ~10% deposit on the next one. Edited August 16, 2023 by Genie Link to comment Share on other sites More sharing options...
foreveryoung Posted August 16, 2023 Share Posted August 16, 2023 (edited) I know someone has already metioned, but I've been in the car all day today, an it's constantly being repeated on the news about Sunaks plan, an how it's starting to work. As far as I know, correct me if i'm wrong, but he seems to be doing f*** all and leaving it to the BOE to increase interest rates until 50% of mortgage owners have to start going to food banks. Edited August 16, 2023 by foreveryoung 3 Link to comment Share on other sites More sharing options...
blandy Posted August 16, 2023 Moderator Share Posted August 16, 2023 1 hour ago, foreveryoung said: he seems to be doing f*** all Is the correct analysis. 3 Link to comment Share on other sites More sharing options...
Genie Posted August 16, 2023 Share Posted August 16, 2023 1 hour ago, foreveryoung said: I know someone has already metioned, but I've been in the car all day today, an it's constantly being repeated on the news about Sunaks plan, an how it's starting to work. As far as I know, correct me if i'm wrong, but he seems to be doing f*** all and leaving it to the BOE to increase interest rates until 50% of mortgage owners have to start going to food banks. Yep, his plan is to do nothing and just wait it out. Link to comment Share on other sites More sharing options...
foreveryoung Posted August 16, 2023 Share Posted August 16, 2023 Noticed fuel gone up by 10-15p a litre too, used to be breaking news if it went up 3-4p, now with rising costs of everything, 10p+ hardly turns a blind eye.. Link to comment Share on other sites More sharing options...
sidcow Posted August 16, 2023 VT Supporter Share Posted August 16, 2023 28 minutes ago, Genie said: Yep, his plan is to do nothing and just wait it out. It was always the plan but it's backfired somewhat as inflation has stayed high longer than he thought I think 1 Link to comment Share on other sites More sharing options...
bickster Posted August 16, 2023 Moderator Share Posted August 16, 2023 19 minutes ago, foreveryoung said: Noticed fuel gone up by 10-15p a litre too, used to be breaking news if it went up 3-4p, now with rising costs of everything, 10p+ hardly turns a blind eye.. I thought this too the other week but my cheap places have gone up in price but oddly others have come down, prices round here are changing but it isn't a global rise, I can still buy diesel at 138p per litre, just in different garages to where I was previously buying it because they e come down and the others have gone up. It’s very odd Link to comment Share on other sites More sharing options...
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