MickiQ
In My Defence I was left Unsupervised
my nephew? about 5'9" he didn't provide any details about how comfortably he fit in the room but I can always ask since I will probably see him over Xmas. Not very I would imagine though.
How is raising interest rates supposed to help with the kind of inflation we are having now?
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Pickman's model
Starry Wisdom
sounds an unpleasantly tight squeeze
8ball
AV REFUGEES WELCOME
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MickiQ
In My Defence I was left Unsupervised
He did tell me that it was a big terraced house that had been divided into half a dozen or so bedrooms with two having onsuite and the rest priced based on size. His was the cheapest.
My son came home from London in 2015 and whilst I never got to see the studio flat he lived in, he did tell me that it was no bigger than our second bedroom (which is something like 13 or 14ft on a side) that he moved back into.
Riklet
procrastinación
that is not a flat. for sure you can get something decent in London for 900 thats better than that
Dublin is about the worst possible city to rent tbh. So many young Irish people leaving because it and going abroad.
ska invita
back on the other side
as i said: one room in a 4 person house share
MickiQ
In My Defence I was left Unsupervised
When my son got made redundant in 2015, he (stupidly with hindsight) went to his landlord and told him he had lost his job but that he believed with a degree in Computer Science and a couple of years experience at a blue chip employer he had no doubt he could find another job quickly and his father (moi) would be willing to cover any rent in the meantime.
The LL was totally sympathetic and agreed he would do this.
When my son got home from work the next day an eviction notice had been stuck under the door.
Son Q rings the LL and says "WTF Dude you agreed this wasn't a problem!"
LL says "Tenants are ten a penny and why should I take any risk?, I can find someone who wants it tomorrow"
Son found himself in a vicious circle at this point, If he didn't find a job before he had to leave he might end up on the streets which would make finding a job even harder so came home to live with us planning to carry on his search from home. (He found a job locally so never went back).
This was in 2015, I read an article yesterday that there are 15 tenants chasing every let in London so I guess things haven't got any better.
UnderOpenSky
baseline neural therapy
Landlord was chancing his arm. They would have to give them several months to leave and if he chose not to go then it's a lot longer to evict, especially if the tenant is paying their rent.
MickiQ
In My Defence I was left Unsupervised
I'm sure you're right but in the long run it worked out better, the job he got locally paid more than the one he had in London and the cost of living is lower to boot. Son and his girlfriend (who his sister introduced him to 3 years later) have bought a house here in the Midlands that he or even they couldn't afford down south.
Raheem
Well-Known Member
That looks like an optimistic don't-sack-us-please bounceback.
brogdale
Coming to terms with late onset Anarchism
The x scale is not the easiest to use, but if the grey zone is forecast falls in PDI for the 2 financial years 2022 - 2024, it still looks like a decline in 2024/2025, so in terms of PDI, it all looks too late for them to be crowing about any bounce before the GE.
Well, we’ll never know what would have happened without raising interest rates…
MickiQ
In My Defence I was left Unsupervised
It might very well be but the fact that we keep getting little homilies telling us all to show restraint and tighten our belts would suggest it isn't working as well as they originally hoped.
DaveCinzano
WATCH OUT, GEORGE, HE'S GOT A SCREWDRIVER!
What's wrong with you people? Just get used to being 19% hungrier
Well, you have to look at it in relative terms — is the UK doing much better or worse than anyone else, and what have they been doing that is different?
This is a useful page:
Inflation Rate - Countries - List
This page displays a table with actual values, consensus figures, forecasts, statistics and historical data charts for - Inflation Rate. This page provides values for Inflation Rate reported in several countries. The table has current values for Inflation Rate, previous releases, historical...
tradingeconomics.com
So the bad news is that the UK is currently the third worst in the G20 for inflation, at 10.1%. That’s quite a bit worse than Italy in fourth, at 7.6%. However, it’s nothing like the worst two — Argentina at 104% and Turkey at 55%.
Across the European region, however, UK is mid-table, between Croatia, Sweden and Slovenia who are just above 10.1%, and Iceland and Austria, who are just below it. The EU as a whole is at 8.3%.
So the UK looks bad compared with the other biggest economies, but pretty average for Europe. And the EU central bank has also been trying to fight inflation by raising base rates.
Anyway, the countries that really stand out are Argentina and Turkey. Argentina is just a basket case (their interest rates are also something like 80%). Turkey is the interesting comparator because Erdogan insisted that the way to tackle inflation was to reduce interest rates, which he has been doing doggedly for a few years now while his inflation problem has got worse and worse. So they are certainly an example of what can go wrong if play the interest rate trick back to front.
gosub
~#
The Bank of England is wrong again: workers aren’t to blame for inflation | James Meadway
Why should we ‘accept we’re worse off’, when corporate greed and global shortages are really to blame, asks James Meadway of the Progressive Economy Forum
Close but no cigar...Phillip's curve to cut inflation (be too worried about your job to request too big a pay rise, is in play though UK has other factor of labour shortages (yep would say Brexit had a part in that)which adds complications... where this bloke goes REALLY wrong though is rising UK interest rates don't impact on the price of Qatari gas...or food (when as he says global food prices have been rising) ....one of the other impacts of interest rates is exchange rate. And if the UK buying as it does its food and energy globally higher interest rates have kept overseas purchases affordable(ish)
Oh a Kabbes US has also been on the interest rate hike path...Looks to have been working ...other headaches now there now though debt ceiling and BRICS scheme of de dollarization.
Just saying cos that's the bigger gig, ECB late on rate rises and a wide inflation spreads underlying THEIR cat herding
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Serge Forward
Just enjoyin' my coffee.
Occasionally, back in those heady days when there was something called the Fair Rent Tribunal - abolished by Thatch & Co.
emanymton
A cat politely sat on the flaming gardener.
The first year in my HA flat my rent went down slightly. It's shot up since then though.
ska invita
back on the other side
Government policy (in hand with the BofE) is now officially to speed up and deepen a recession "to bring down inflation"
ETA: Latest "Ministers 'not comfortable' triggering recession" - feel that Tory burden
ETA: Latest "Ministers 'not comfortable' triggering recession" - feel that Tory burden
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Brainaddict
slight system overdrive
It seems to be a form of madness that has taken hold of these policymakers in govt and BoE. The UK has been teetering the verge of a recession for a while, probably only prevented from technically being in recession by the growth of rentier bullshit in London. It's productivity is low, it has fallen behind other large economies due to austerity, and millions need foodbanks. The idea that inflation is being caused by too much demand across the economy is insane. But that seems to be their assessment if they think the solution is more recession.
ska invita
back on the other side
Its got to be ideological blindness right? Even though the IMF have comprehensively proven wage-price spirals are bullshit, this response is explicitly based on the idea people are earning too much and need a dose of immiseration.
???
Smokeandsteam
Working Class First
According to the Times the Tory thinking is that companies need to see money being sucked out of the economy and recession bite/repossessions increase before they can be persuaded to limit the price gouging and acclereated accumulaton of profit. So, a tool used to control demand led inflation is being applied to supply led inflation.
These people have received the best education that money can buy too......
The rate rises are having the desired impact on exchange rates, though. Sterling is up about 5% over the last few months. That’s an important factor in an import-heavy economy. The earlier collapse of Sterling is a big factor in the UK’s current problems
MickiQ
In My Defence I was left Unsupervised
The BoE knows full well that most of the current inflationary pressure is down to supply side inflation rather than demand, ie there isn't enough stuff rather than too many people wanting it.
But there isn't anything the BoE can actually do about that, it's only tool is interest rates to suppress demand side inflation. It will work if it's applied harshly enough if people can't buy food because all their money is going on their mortgage and rent.
The Govt could do something in the form of price controls and/or mortgage tax relief though it would need to strike a balance between supporting people and stoking inflation further and would be expensive.
Can't see that happening though, it's more likely they would work on the basis of hoping the pain isn't too bad for people likely to vote for them.
But there isn't anything the BoE can actually do about that, it's only tool is interest rates to suppress demand side inflation. It will work if it's applied harshly enough if people can't buy food because all their money is going on their mortgage and rent.
The Govt could do something in the form of price controls and/or mortgage tax relief though it would need to strike a balance between supporting people and stoking inflation further and would be expensive.
Can't see that happening though, it's more likely they would work on the basis of hoping the pain isn't too bad for people likely to vote for them.
You can see Sunak today attempt to reframe inflation explicitly as a moral problem. This is their attempt to counter the immorality of prioritising it ahead of the lived devastation for millions than a recession will cause
ska invita
back on the other side
I don't watch that kind of filth, what's he saying? What's the moral case?
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