Inflation ?

[Observer II]

With Labour's Lisa Nandy supporting a strike by Rail Workers; it would seem that Labour's solution to the cost of living "crisis" is a mad scramble for wage rises, which will feed into an inflation spiral.   Now we're being told by the media and lefty politicians, that folk are struggling and can't afford to put food on the table, turn their heating on, or drive their cars;  and whilst I've no doubt that applies in some cases, I'm not sure it applies to well paid rail workers; or all those booking flights for foreign holidays.  So perhaps less hysterics are called for and a return to the old adage of "cutting your cloth according to your means".     

[Evil Sid]

They have to put something on the news now that the pandemic has been relegated to page eight and no longer causes panic among the masses.

I can imagine the editors sitting in a little room with a brandy and a cigar discussing what the next scare story will be.....🕵️‍♀️

[Observer II]

Well, the scare for today was the weather, hottest day of the year so far - has anyone told them it's summer.    

[Evil Sid]

They want to get the climate change train back on track probably.

"It's the hottest day since records began" really?

when i were a lad the tar on the road used to melt and bubble up during summer, mind you it were proper tar in those days wit loads of chippings in. If you walked across the road you ended up half an inch taller by the time you got to the other side. but you had water proof shoes and soles that could scrape the bark off trees......😎

 

[ninearches]

I noticed 1947 was a quoted hot summer on yesterdays weather. I wonder how many there were before records began ?

[Observer II]

It should not escape us, that inflation was started by the US,  who, during the pandemic were sending out cheques to the populace funded by printing more dollars.   This has been compounded by attempts to cripple the Russian economy with sanctions, which are failing and the consequent rises in energy and food costs.  But we still have a Gov paying out £5million per day to house immigrants  and  in sending money and arms to Ukraine.   Time we had politicians prepared to put Britain first for a change and look after our own, starting with the worst off.      😠

[ninearches]

I must say ,i wonder if HMG were expecting this inflation when the pensioners triple lock was suspended last autumn . Hopefully, that will be reinstated this year.

[Confused52]

1 hour ago, ninearches said:

I must say ,i wonder if HMG were expecting this inflation when the pensioners triple lock was suspended last autumn . Hopefully, that will be reinstated this year.

Public statements last year were about the 8% increase in the Average Take home pay index being unrepresentative and temporary and that was why the triple lock didn't apply last year. It has already been re-instated this year. I'll bet the government wish they hadn't curbed the triple lock because it would have taken the sting out of this inflation, my guess is that they certainly were not expecting it.

[Observer II]

I keep hearing Labour MPs in regard to the rail strike, talk about "sitting round he table",  but it seems to me there's nothing to discuss, as any wage increase will feed into the inflation spiral and probably encourage other, some more deserving,  sections of the workforce to do the same.  The principle to employ imo, is that the broadest shoulders should bear the weight and relief measures applied to the worst off.   I notice MPs sneaked in a wage rise earlier in the year - but alas it's "don't do as we do, do as we say" as usual.    😠 

[Evil Sid]

32 minutes ago, Observer II said:

 I notice MPs sneaked in a wage rise earlier in the year

since when did any mp vote for a pay cut.

anyhow it is an expensive thing being an mp, the upkeep of the moat to keep the peasants out when the rebellion happens must be staggering.....🤦‍♀️

[Confused52]

5 hours ago, Evil Sid said:

since when did any mp vote for a pay cut.

anyhow it is an expensive thing being an mp, the upkeep of the moat to keep the peasants out when the rebellion happens must be staggering.....🤦‍♀️

You may be surprised to hear that the agreed, by the pay body, increases for ministers salaries was rejected by Boris this year - so they got nothing. MP's pay was frozen for the previous two years too.

According to Shapps the pay of all rail workers went up by 39% over the last 10 years compared with 16% for nurses: in response to a question from Charlotte Nicholls! (Her Mum is an RMT striker)

[Observer II]

With inflation now at 9.1% it seems pensioners will survive with an estimated 10% rise, thanks to the return of the triple lock.   However,  no mention of the highway robbery of savers by the Banks, who have failed to increase interest on savings for years.  😠

[Bill]

But surely if the banks increased interest rates, then building societies would have to match them forcing up mortgages and so adding to the inflationary spiral.

 

Bill 😊

[Observer II]

Think that's the way it supposed to be Bill;  the borrower pays interest, the lender receives interest; it's called capitalism.   😑

[Confused52]

Interest rates on building society savings accounts and National Savings have indeed been following Bank Rate up this year.

[Bill]

The point is that the Bank of England’s base interest rate is a control mechanism that helps the country to control prices and inflation and I’m no expert in these matters, but I can’t understand how anyone could see this as being robbery.

Yes, it’s capitalism but the banks provide most of our financial services and like most other businesses ideally it needs to return a profit. If it was run on a none profit basis, then we’d probably have to pay them to use it and interest rates could even be negative.

 

Bill 😊

[Observer II]

Banks are offering less than 1% interest on savings - inflation is over 9%;  this means that they are literally stealing money from savers.    😠

[Bill]

Increase it then to 9% but you’re still no better off at the end of the year.

Do that though and everyone’s mortgage goes up by 9%, millions suddenly can’t afford their home and are forced into strike action and all because of you Obs 😊 😊 😊

 

Bill 😊

[Observer II]

😀    Bill, even I remember a time when, if you wanted something, you saved up in order to afford it; then along cam HP and some folk went wild buying on the "never never".  Having a mortgage is basically the same thing, and many take on commitments beyond their ability to repay,  sensible folk will keep their commitments within their means and only the foolhardy will gamble on their future situation, by living beyond their means.    As for strikes, I'll wager that the vast majority of those now in the queue and threatening to join the strike bandwagon,  have all had their holiday abroad and are not anywhere near the poverty line.    Wage inflation will only inflame an inflationary spiral and we all finish up worse off, a line has to be drawn in the sand before we slip into anarchy.     😉

[Bill]

Nobody saves up to buy a house outright, so a mortgage is a fact of life and indeed most people buy stuff these days using some form of credit. It’s not the way you or I would do things but we’re in the minority. You only need to look at the number of adds on telly about increasing your credit rating to realize that we live in a very different world.  Given the majority live this way, we can’t just do things that would create real hardship for this majority of people just because we think they’re all foolish. Interest rates need to stay as low as possible if we’re to avoid runaway inflation and all it associate problems.

 

Bill 😊

[Observer II]

Well Bill, circumstances change with the times, and were now in a position where folk pay upfront for their funeral in advance !     😉

[Evil Sid]

you know obs i do wonder about that.

had one of those funeral plan things through the post and decided to read it.

over a certain age, can't remember exactly what age think it was around 60,the cost was double what they advertised as an upfront payment.

so it it cost say £1200 all in after 60 it would cost £2400 not much of a saving. Still cheaper than going the normal route.

My concern would be what if the particular firm you paid went out of business before you pegged out?

would you get your money back or would you get your funeral shifted onto another firm?

That advert for sunlife always makes me smile when one of them says "and i will get a guaranteed lump sum when I die" er no you wont your relatives will get the money you will get the cheapest funeral they can find and pocket the rest.....🤦‍♀️

[Observer II]

Well there's no doubt that the sons and daughters of the boomer generation will hit the jack pot when the boomers finally depart this mortal coil;  having probably had the best period in history imo.  It's probably downhill from now on, so I don't envy them.    😉

[Evil Sid]

Can you still leave your body to medical science?

 

[ninearches]

8 hours ago, Evil Sid said:

you know obs i do wonder about that.

had one of those funeral plan things through the post and decided to read it.

over a certain age, can't remember exactly what age think it was around 60,the cost was double what they advertised as an upfront payment.

so it it cost say £1200 all in after 60 it would cost £2400 not much of a saving. Still cheaper than going the normal route.

My concern would be what if the particular firm you paid went out of business before you pegged out?

would you get your money back or would you get your funeral shifted onto another firm?

That advert for sunlife always makes me smile when one of them says "and i will get a guaranteed lump sum when I die" er no you wont your relatives will get the money you will get the cheapest funeral they can find and pocket the rest.....🤦‍♀️

Perhaps the receivers would auction your body off Sid.