More increases in living costs to come yet..!!
- Thread starter iv-tecman
- Start date
Borris said:
I didn't insult you just that if you're going to tear into a post with terms such as "non-sequitur" then I post a link showing that U.S. interest rates have been lower in the U.S than they U.K. for the last 10 years that you are just being pedantic. So are you saying the Halifax link is incorrect are have interest rates in the U.S. historically been lower then the U.K. ?
Borris said:
LOL
I don't tend not to use language like this as it can make you look like you've got somebody to impress!Cheers sweetpea
HEADRAT
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Borris said:
Woah.. Easy. Let’s not get carried away. I understand this could be a sensitive issue, but let’s not make enemies. Or upset. It’s good to get this out in the open, as I’m sure many will be exploding with the cost of living. I know I am. Chill.
But, yes I can’t help feel that the high street will feel this soon, if not already. We already see many shops closing, consumers demanding cheaper products. If recession does hit the UK, and it might then that will be it for some time. I do worry about the future of the UK. It’s all very precarious at the moment I feel.
HEADRAT said:
Surely if its an average then that statement is meaningless?
Yup.
NO-ONE in this country pays income tax at a marginal rate of 40%. In fact, if you take the earnings multiplier of 4, so someone needs to earn circa 40k to get a 160k mortgage, their marginal tax rate will be about 21%.
Only if you spend every last penny on VAT applicable goods.
Yes, but tax rates are low. Google for 'tax freedom day', and you'll find that folk in Europe take an extra whole month to pay their taxes...
Well, i would suggest that given that most of what your opinion is based on is incorrect, or based on a very shaky knowledge of taxation, i would respectfully suggest you're talking nonsence. IMO, of course....
My post was just supposed to be "indicative", at the time I didn't have the time to write an exhaustive description of the detail, I agree that it wasn't perfectly crafted by any strech of the imagination but this is getting silly.
1. If you were getting paid 40K then you would be in the 40% TAX rate, I accept you aren't paying 40% on all of your salary and I don't think I claimed you did. Last time I checked the mortgage multiplier was 3.5 x but this may have changed.
2. Of course there are items that don't have VAT on food/childrens clothes/book but look at pertrol this is 75% (approx before I get pulled apart for that) TAX so if you spend lots on petrol the amount going in TAX is > 57.5 %!
3. I was talking about interest rates, which have historically been lower Europe/Japan and the U.S. (as per my first post)
I wasn't talking in "economic" terms, I was talking in terms of somebody being able to buy a house. Interest rates are "relatively" low but house prices are "very high" so in real terms the cost of buying a house is "high".
What is better:-
1. Buying a house for £75K with interest rates of 10%
2. Buying a house for £250K with interest rates of 4.5%
Mine is more recent so its obvious that average house price has dropped 40K in a few days (that was me trying to be funny BTW)
Cheers
HEADRAT
1. If you were getting paid 40K then you would be in the 40% TAX rate, I accept you aren't paying 40% on all of your salary and I don't think I claimed you did. Last time I checked the mortgage multiplier was 3.5 x but this may have changed.
2. Of course there are items that don't have VAT on food/childrens clothes/book but look at pertrol this is 75% (approx before I get pulled apart for that) TAX so if you spend lots on petrol the amount going in TAX is > 57.5 %!
3. I was talking about interest rates, which have historically been lower Europe/Japan and the U.S. (as per my first post)
Visage said:
I wasn't talking in "economic" terms, I was talking in terms of somebody being able to buy a house. Interest rates are "relatively" low but house prices are "very high" so in real terms the cost of buying a house is "high".
What is better:-
1. Buying a house for £75K with interest rates of 10%
2. Buying a house for £250K with interest rates of 4.5%
PsiFox said:
Mine is more recent so its obvious that average house price has dropped 40K in a few days
(that was me trying to be funny BTW)Cheers
HEADRAT
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As a nation we've been racking up debt like nobody's business for the last 10 years maintaining a lifestyle we cannot afford and selling each other ever more overpriced houses, so it's no surprise that eventually we'll have to start cutting back on the luxuries in life to service debt and pay for dwindling natural resources.
And considering wage slaves in china work 28 days out of 30 for 50p and hour the vast majority of our western lifestyle is a luxury and will disappear over the next 20 years as there will be a levelling of living standards across the planet thanks to good old globalisation.
The Financial Times puts another spin on it. “The truth is,” it says, “that all the major currency areas are burdened by debt and fiscal commitments that cannot be met out of their income. Some of these commitments will be paid. Some, such as US housing and consumer loans or European pension promises, will be defaulted on and some will be inflated away. During the coming years, the world monetary system will be reconfigured with a much larger role for emerging market currencies and a much more frugal life, relatively speaking, for people in developed countries
So we can all expect taxes up, commodities and energy up, inflation up, retirement age up, wages down and standard of living down.
And considering wage slaves in china work 28 days out of 30 for 50p and hour the vast majority of our western lifestyle is a luxury and will disappear over the next 20 years as there will be a levelling of living standards across the planet thanks to good old globalisation.
The Financial Times puts another spin on it. “The truth is,” it says, “that all the major currency areas are burdened by debt and fiscal commitments that cannot be met out of their income. Some of these commitments will be paid. Some, such as US housing and consumer loans or European pension promises, will be defaulted on and some will be inflated away. During the coming years, the world monetary system will be reconfigured with a much larger role for emerging market currencies and a much more frugal life, relatively speaking, for people in developed countries
So we can all expect taxes up, commodities and energy up, inflation up, retirement age up, wages down and standard of living down.
Coming across as anything is down to inference by the reader - I try to use unemotive language, particularly in posts where I'm trying to understand somebody's reasoning - as soon as petulance creeps in on somebody else's part, I'm more than happy to cast the second stone.Desmo said:
Nothing was for the hell of it, and, going back to what I initially posted, I hope there is at least some merit in it.
Visage said:
I don't want get involved with this argument because I don't understand it.
My understanding is that high-interest rates increase the cost of borrowing, and being as national personal debt is so high this is quite important.
High interests rates will put more pressure on anyone borrowing money, say for example starting your own business, or mortgages etc (just about everything).
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