Carryfast:
Winseer:
I’m sick to death of seeing every decent pay round for the past four decades - choked off, and cancelled out by bloody interest rate and/or tax rises!!
As opposed to theft of capital.In the form of below inflation interest rates.Mostly because workers have bought the militant unions narrative so haven’t got the bottle or the inclination to maintain wage levels at above inflation.
Or regressive Council Tax or Purchase taxes which means earned income being taxed twice to provide income tax cuts for the highest earners.
Also bearing in mind the laughable difference in investment rates v lending rates ripping off investors even more.
There is a point where savers decide to either risk the cash playing the markets or spend it to add value to property which they can then liquidate later.
Rather than hand over their cash, so as to subsidise the wage levels of gutless workers with an aversion to maintaining their own wage levels instead of nicking other people’s cash.
Building Societies are already having to increase their savings rates to attract capital in that regard.The banks will have to follow suit if they want to maintain their funds.
As for Thatcher her idea of wage control was to just export the jobs to foreign workers whether German or Communist it didn’t matter to her.
Which further weakened the position of the domestic workforce.
There’s two tug-of-wars going on here.
The Bank of England likes to threaten interest rate rises - whenever workers get above-inflation pay rises, thus cancelling them out as I said earlier.
The other side of the coin however is the inflation in things you have no choice but to pay through the nose for, such as Utility bills and Forecourt prices.
I find it odd timing right now that ALL the supermarkets have stubbornly kept forecourt prices at sky-high levels, despite Oil dropping 20% back last week, although it has recovered half the drop since then. NO sniff of any drop back to the mid-130p/litre for forecourt prices alas! This is inflationary.
It bites the supermarket in the arse though, as Farmers won’t let the usual bullying happen to them… They’ll argue that THEIR prices need to rise to keep pace with inflation as well, and it all feeds on itself as it did in the late 1970’s…
If the Bank of England over-reacts, then we could see the beginnings of such inflation turn into a deflationary CRASH though…
It is a very fine balancing act indeed. Next week’s interest rate decision - will be watched closely by doves and hawks alike…
A rate rise more than necessary will kick workers and their recent pay rises into touch, and make everyone wonder why they bother to go on living…
A rate rise to 0.25-0.5% will be in line with expectations, and little will change.
NO rate rise - would give the supermarkets another month to start dropping their prices in line with cheaper produce, cheaper wholesale fuel, and of course a now-cheaper wage settlement, with more and more accepting the new deal of 5.5% plus 0.5% in february… There’s also a bonus for taking no time off over Christmas, so there’s not much point in striking at all really…
I am always amazed at how stupid savers with huge sums in the bank @ 0.1% interest rates - don’t put it into dividend yielding shares “Because it’s toooo risky” when leaving it on deposit at 0.1% guarantees you go broke slowly over many years - 100% chance of going broke, not 99% chance like trying to pick the winner of the next grand national!
People have got no idea of how to “RIsk Assess” their capital, and as such “Fools and their money - are soon parted”.
If you throw a rock into a pond - it sinks. If you throw the same rock into the sea - it sinks further.
Your savings are that rock. What you need to be doing - is surrounding it with bouyant devices, like floats NOT merely choosing a shallower pool to lose your money in!
“Oooh if it takes me 10 years to lose it all - then that’s lower risk than losing it all by the end of this year…”
No it bloody well ain’t! - The longer it takes you to lose it all, the longer it takes you to re-build it as well, and accept the fact you lost it!!
A quicker end means a quicker bounce-back recovery.
I know plenty of people that went bankrupt in their 40’s, and became millionaires in their 50’s.
Those who didn’t go bankrupt in their 40’s - are strangly still struggling to make their first million, yours truly included.
It seems “Getting rid of all the minus things in your financial life” - makes you wealther rather faster than actually adding money to your pocket…