Swerv-o

Yes, whatever happened to that nice Mr Smith?


S

themerlin

Well didn't this mess start when the wise old Mugabe chucked the white farmers off there land, as a result there was no farming going on and no food?
So I think it has a lot to do with the guy running the country.

Swerv-o

Hmm. And, despite invitation, I notice that we haven't marched in to Zim claiming that there needs to be regime change...

Could it be that Zim has no oil?


S

Nursebank

Inflation is a hidden tax, where does inflation originate from, you tell me?

When you inflate an economy, how do you actually do it?

You keep inflating yes?

Print that stuff you spend, print loads of it, it becomes worthless.

It is printed to inflate assets such as stocks and guess what things you live in!

Yep, if we all pulled all our paper out of the banks and bought gold, the global paper economy would collapse! Are being conned, you tell me you dozy tw@t?

bcworld

I didn't ask what inflation was, rather how you justify your 'soaring' inflation argument. If failing to blindly agree with your opinions (many of which I have in the past agreed with) makes me a dozy tw@t then so be it!

@boy

Good advice. Rising up to to 11% is exactly the assumption we made when we took out our loan to buy in March 2005 here. The amount we decided to borrow (influencing the decision of what/where we bought) was determined in a large way by that assumption.

As a result, we don't have to quake in our boots every time there is another .25% rise, although if there are 12 more of them, we'll be getting to that point !

cavacharva

I'm no economics guru like our Gordon but I think you will find the official inflation figures are pure BS. 2-3% is laughable.

Think about Council Tax, Travel costs, houses. If you factor all the real things people have to buy then the figure is much higher, closer to 10 - 15 %. There is a personal inflation calculator I've seen somewhere, do a google for it, you'll be shocked.

And guess what If any of those items in the official inflation figures get's out of control it's quietly dumped.

Nursebank

No, my appologies, you are not, inexcusable that kind of remark, i withdraw that comment!

No excuse i know, but i was blind drunk, i now recognise your profile, you are one of the good guys, sorry again. One too many tequila slammers, out with the girls, been a tough week on the wards!

Regarding inflation though here in the UK, believe me, it is way above official stats, and the natives are getting restless. To cut base rates in the enviroment where cost inflation is out of control and hidden, and where wage inflation is lagging so far behind, so the subject is quite sensitive, and i sometimes bite when the sheep do not see it right before their eyes that they are being conned. I did not look at your signature, you are not here in the UK, so you are blind to it. But Crash Gordon Brown the biggest ever Clown, is single handedly destroying UK Public Limited Company!

bcworld

I'm not blind to the situation because its exactly the same here. I think I saw official inflation numbers at 3.6% last week but for probably 2 years now most food groups, fuel & housing - especially rents, have had figures in the double digits so it always makes you wonder what it is that is having the negative effect and bringing the 'official' rate back to where it is. I can only think in Aus and the UK the answer is imports, as the p!ss weak US dollar has made these cheaper - although I'm not sure plasma TVs are included in the basket of goods to calculate inflation. Or the inflation figures are a nonsense as you say.

However, its not a situation which is unique to Gordon. You could level the same criticisms at Howard / Costello - the RBA has now even eluded to the fact that their policies were stoking inflation and hence interest rate rises were required - nice legacy they have left for Mr Rudd.

NikiL

One of the major factors affecting inflation is food. Pure and simple. The price of farming has been kept artificially low (predominantly by the supermarkets) for some considerable time, and it has now reached a point where the farmers have had to force price rises to enable them to feed livestock (where feed prices have increased exponentially) purely to survive. Arable farmers have had the same issue at a more basic level. As no matter which way you look at what goes into the inflation basket, some of it has to be food, this is one of the many factors forcing inflation upwards globally. The international expansion of some developing countries has created an increased demand for certain commodities, (China and steel being a strong case in point wher China now demands an extremely large percentage of the worlds steel supply) which also forces prices upwards. Its global, just some countries feel it more than others.

BadgeIsBack

Interesting that rates are going higher here, and lower in US/UK!

Nursebank

Maybe a time lag, if and i say if; The central banks have made a very secret handstake, whereas, we will all reduce one by one, USA, then Cananda, the UK, next OZ? It will stabalise the currency markets?

If you really think OZ is immune to this credit crunch, and house price devaluation, well, i say get off the drugs, because this toxic is global. It is not confined to the US and the UK?

Its going to get real messy! Even in 0Z, it is not contained!

Average wage $50,000.00 Average House Price $500,000.00 in Brisbane, hang on i have just blown a gasket and wet myself!

brissydeb

Really depends on a lot of factors, pass over the glass ball and i will tell you!!!

bcworld

The US/UK have far greater exposure to the problems in the global credit markets - I'd say the central banks are trying to take some pre-emptive steps to address this. Canada have also dropped their interest rates as they are likely to catch cold from the US.

Aus now has much more of its interests linked to Asia and so is less affected. Also I'd say the inflation 'problem' - either on official or 'real' stats - is worse in Australia hence the bank keeps on tightening. The economy is still sweet too of course with little sign of any dramatic changes. Whereas in the UK there are the first signs of also catching cold from the US / housing market downturn so the bank is acting.

brissydeb

Give it time....