Mortgage Rate Rises

Meanwhile, we pay one man £585,000 a year and his deputies £360,000 a year using tax payer money to effectively do this:


But don't you plebs dare to ask for more money than £30k a year :confused:
 
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If pay rises are contributing towards inflation and I don’t believe it for most people as effective pay has lagged inflation for years then why won’t the government re-introduce the cap on bankers excessive bonuses and pay? Why not limit executive pay to a reasonable multiple of the lowest paid person in the business.

Most people on average salaries in the UK even with 5-10% payrises are not as well off or have as much spending power as in 2019.

Interest rates only penalise a very small number of people in the country and also strangle the new housing market with “affordable” housing being so front and centre of what is wrong with this country and needing to be fixed.

Curb excessive spending with targeted VAT increases.

The whole thing is a complete con and I can’t wait for more people to realise this so we can change how this country is run for the good of everyone.
 
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Shoza said:
If pay rises are contributing towards inflation and I don’t believe it for most people as effective pay has lagged inflation for years then why won’t the government re-introduce the cap on bankers excessive bonuses and pay? Why not limit executive pay to a reasonable multiple of the lowest paid person in the business.

Most people on average salaries in the UK even with 5-10% payrises are not as well off or have as much spending power as in 2019.

Interest rates only penalise a very small number of people in the country and also strangle the new housing market with “affordable” housing being so front and centre of what is wrong with this country and needing to be fixed.

Curb excessive spending with targeted VAT increases.

The whole thing is a complete con and I can’t wait for more people to realise this so we can change how this country is run for the good of everyone.
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Inflation is affected by pay.
Because peoples pay are part of a businesses costs. So as pay goes up they try to charge more.
But the ratio of pay to costs varies a lot by sector. So x% pay inflation in one sector could be significant and another not. Compare say welfare work companies to oil companies. Welfare will have a very high % staff costs and as such more likely to need to pass most on. Oil companies will have very high operating costs outside staff costs so the % increase in their costs from pay rises will be much lower and they can probably afford a lower % increase to pass on. I know oil companies and profits etc etc at the moment, just using it to demonstrate how it works.

The theory of lower pay rises is that it reduces consumption, so it reduces demand and should supress inflation as companies struggle to pass on costs fully.
Problem is over time as we have become more globalised and more people who do have a mortgage fix, the tool of interest rates is getting worse and worse, it was only marginally useful decades ago. Its now practically useless.
But its the only tool the BOE realistically have, which is why the government should be acting. But they arent as they are being political and trying to shirk off their responsibilities onto the BOE.
 
Don't actually have an issue with supermarkets.
They do seem to price things fairly. And will even take named brand products off the shelf if they try to pull huge rises.

Thier profits aren't excessive, and generally they do a decent job for customers
 
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When it comes to interest rates most focus on mortgages, which is natural as that is what affects most individuals or their families directly.

There is a much larger picture with regards to business investment and the currency. Obviously, if borrowing costs are more then businesses are less likely to borrow to invest. That has a deflationary effect. Also if the currency strengthens then imports become cheaper which also has a deflationary effect.

Some on here will remember the days of going on holiday and everything was cheap due to the strength of our currency. These days often everything is more expensive. Interest rates are not necessarily bad, I remember in the mid 2000's I had customers who were living off the interest they had from a cash ISA.

The move from a low interest rate environment to sensible rates will be painful for some. The speed of it has caught some out. We do need higher interest rates to compete with other countries and make sure our currency is actually worth something.

The BOE knows this and doesn't really have much of an option. Oil and energy can dictate inflation but if we keep the currency strong against the dollar then we can mitigate the effects of the price increases.
 
jjgreenwood said:
When it comes to interest rates most focus on mortgages, which is natural as that is what affects most individuals or their families directly.

There is a much larger picture with regards to business investment and the currency. Obviously, if borrowing costs are more then businesses are less likely to borrow to invest. That has a deflationary effect. Also if the currency strengthens then imports become cheaper which also has a deflationary effect.

Some on here will remember the days of going on holiday and everything was cheap due to the strength of our currency. These days often everything is more expensive. Interest rates are not necessarily bad, I remember in the mid 2000's I had customers who were living off the interest they had from a cash ISA.

The move from a low interest rate environment to sensible rates will be painful for some. The speed of it has caught some out. We do need higher interest rates to compete with other countries and make sure our currency is actually worth something.

The BOE knows this and doesn't really have much of an option. Oil and energy can dictate inflation but if we keep the currency strong against the dollar then we can mitigate the effects of the price increases.
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But unless wages keep up with house prices (and therefore what you need to borrow to get one), you cannot raise interest rates much without financially destroying most people.

House prices have gone silly, but then causing a housing crash will also trash the economy as well.

The mismanagement of the economy has pretty much cornered us.

We have already surpassed the 1980/1990 peaks in terms of relative affordability. The bank has no more room to act without crashing everything, and their ability to use interest rates becomes less and less workable as house prices continue to grow.
 
413x said:
Don't actually have an issue with supermarkets.
They do seem to price things fairly. And will even take named brand products off the shelf if they try to pull huge rises.

Thier profits aren't excessive, and generally they do a decent job for customers
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People can always grow their own food and what not. But then they won’t and pay for convenience of not doing that. But then moan when said companies make profit …
 
Simon said:
People can always grow their own food and what not. But then they won’t and pay for convenience of not doing that. But then moan when said companies make profit …
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It takes a lot of land to grow your own food though! And work.
 
413x said:
It takes a lot of land to grow your own food though! And work.
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Indeed. Most people havent got the land to be sufficient and its practically impossible in the UK.

There are however plenty of easy to grow crops that dont take up excessive space.
For you for example you could plant some garlic in your wildflower beds and it would fit right in. Then harvest late summer.

Potatoes easy to grow, tub/bag fill with compost plant a few pots, profit. But they are not space effective.

Many of the expensive stuff like fresh herbs, chilis are also pretty easy to grow in pots. Things like chilli plants look nice.
Couple of tom plants in a grow bag, some runner beans up against a wall etc. Little work really.

Lots are quick and easy to grow on a small scale.
 
Mercenary Keyboard Warrior said:
Indeed. Most people havent got the land to be sufficient and its practically impossible in the UK.

There are however plenty of easy to grow crops that dont take up excessive space.
For you for example you could plant some garlic in your wildflower beds and it would fit right in. Then harvest late summer.

Potatoes easy to grow, tub/bag fill with compost plant a few pots, profit. But they are not space effective.

Many of the expensive stuff like fresh herbs, chilis are also pretty easy to grow in pots. Things like chilli plants look nice.
Couple of tom plants in a grow bag, some runner beans up against a wall etc. Little work really.

Lots are quick and easy to grow on a small scale.
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Was going to say potatoes. But they are also incredibly cheap in super markets.
I grew up in a farm and my grandparents had acres of "personal" space. My grandad had a huge vegetable patch. And poly tunnels. Everything from peas to beans to potatoes to Brussels sprouts even currents. The work and time and space is huge to feed a family. It was amazing. But need to be retired really and love it.

I have my own hens but had to buy a box in supermarket. I was shocked. I couldn't believe price of 6 organic/best welfare eggs!

I haven't bought eggs in 3 years and was just blown away.

If you have space for hens.. Get hens!
 
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