OT: Cost of living

They can just print what they need.

MMT!

But not true just as it wasn't true then. The govt can just print what they need. Just as they did for covid, the afgan refugees etc.

But the government didn't print more goods and services, hence the high inflation we have for the foreseeable future.

No, mechanisation of farming practices put many out of work and that meant out of somewhere to live. Like the migrants camped on the Northern French coast, there was a story going around that the streets of English cities were paved with gold.

Also, (and frequently overlooked) there was a serious famine in England at one point.

Until Lettuce monday they could alway rely on overseas friends to buy our debt, now up to about £2 trillion, at rock bottom interest rates.

In reality they collect FAR more than they print.

Nope, the high inflation is due to the war in the ukraine.

The Ukrainians printed a load of Sterling? Who knew?

No, the Ukraine war produced sanctions on Russia which hiked the price of gas and THATS what produced the inflation.

Increases in the prices of individual goods or services is *not* inflation.

Inflation is the reduction in the purchasing power of a currency of all goods and services by the same amount at the same time, though sellers may reprice their goods and services a little differently from each other. It is caused by the money supply being increased faster than the supply of goods and services which can be bought with that money. Always. It is invariably caused by the issuers of the devalued currency, generally as instructed by the government.

Both phenomena cause a rise in the cost of living, but that does not make them the same thing.

How odd that the price of those is included in the calculation of the CPI.

And that is determined by the PRICE of them.

That never happens.

Or don't need to reprice their goods and services when their inputs to them have not been affected.

Wrong, as always. And that isnt the reason for the current spike in inflation.

That isnt the reason for the current spike in inflation.

Pathetic.

Oh dear. No they cannot just print money. The B of E can , But it is a process of issuing gilt edged debt.

So it still in some sense has to be paid back. Blair and Brown discovered that you can borrow money and buy votes with it 'investing in people' who just then spend it on chianes crap, creating pure wealth destruction. You end up with no productive industry, no exporst and a crap balance of payment and a huge government deficit to pay interest on it, which they then handed to the tory/lib dem wankers, who made it even worse. .

The high inflation is not down to high money supply, its down to a resource shortage that has been *deliberately* created by implementing green energy policies instead of fracking and building nuclear power.

With the explicit collusion of Russia who could then use gas as a lever to control Europe.

This is the cost of not giving in to Putin, and of not sacking all the Remainer politicians who are complicity in the EU derived renewable obligation

Before the industrial revolution the populations was stable at up to 6 million pre Black Death, down to around 3 million post Black death, and did not really rise until advances in farming and mechanisation happened.

Once the mills and factories started up, we think it was massive poverty, and so it was, but the populating trebled in 50 years.

And the labour moved out of the fields entirely.

There was work in the towns, and no work in the fields, although that process of depopulation of the countryside carried on until the 1930s. And its final demise is depicted in 'Larks Rise to Candleford' (the book, not the film)

No, the current inflation is not due to an oversupply of money, only stupid Marxists think that, but they run the government economy. The inflation is due to a scarcity of energy, which Russia is using to apply pressure to the West to stay out of Ukraine. And the West is suing to pressure Russia to cripple its war machine. And that scarcity has been encouraged by Russian sponsorship of the EU Green lobby and its renewable energy obligations

Raising interest rates was the most stupid thing the government did.

We will see crippling inflation for about 5 years until new energy sources start to come onstream and maybe nuclear power gets built

It is you crass and poiuntless iddiotr

No, that is just ONE type of inflatin caused by miney supply exceeding general prodiction of goods.

At the moment we have a specific shortage of some goods caused by energy shortages which is having a ripple through effect on all economies. The problem is that energy costs underpin almost everything in a post modern society.

But they are both called inflation

I assumed we were talking about the 20th century.

He can't have been talking about any other century.

I got paid that way in a number of jobs in the mid 20th century.

And the fella who did the pay had a revolver so he could blow away any robber in the 70s.

I did have a bank account while still in school tho.

Right now real interest rates are negative.

Savings and mortgage rates are about half inflation.

Inflation has shrunk money by 10% or so in a year.

Savings interest has only returned half that. And it's likely taxed.

If you have borrowed money then your debt has shrunk too.

Andy