Have A Mortgage? Voted Labour? Oh Dear!

[ToraToraTora]

https://www.bbc.co.uk/news/articles/cjqe82lk5g5o

Inflation busting pay rises translate into higher interest rates down the line. Ironically that is good for me!

[ToraToraTora]

16:50, the thinkg you are missing or probably choosing to miss is that you personally want what you can get as a pay rise and individually that's what we all want but when inflation is 2% if you give a group 22% like they are talking about with the doctors, that emboldens everyone else to want it. Then that puts more money into the economy, that increases inflation and the main way inflation is controlled is by interest rates. So that 22% will be wiped out by a couple of points on interest rates, ie mortgages so those with a mortgage will be worse off. so if rates go from 5.25 to 7.25 that will wipe out any pay rise, geddit?

[Peter Pedant]

Hymie I have to say - you are a trier ---

[Hymie]

All my life I’ve been thinking that if I had twice the money I had, that I’d be wealthier - but I have been schooled by the economic experts on here  (TTT and youngmafbog) telling me that if I had half the money I have now, that I’d be wealthier than I am now (and not poorer as I thought).

[ToraToraTora]

hymie: "All my life I’ve been thinking that if I had twice the money I had, that I’d be wealthier " - you've had 4 hours to think of that and once again you fall for a school boy error. If you alone did have more money and no one else you'd be right but if everyone has it it's worthless. If everyone had a £m no one could afford a loaf. That's the power of inflation. You really need to do some school boy economics.

[douglas9401]

Is it time for a concerted effort to locate and wipe out the greed gene? Preferably before medical school training or train driver classes are entered into.

[Hymie]

If I’d had annual pay rises at or lower than inflation over my working life – I very much doubt my total financial wealth would be more than half what it is now; but according the TTT and youngmafbog I’d be wealthier.

[ToraToraTora]

it's not about individuals me old china try and think of it collectively.

[douglas9401]

Both, incidentally, millionaires. 😐

[ToraToraTora]

the main reason your money still buys something is because governements do understand the dangers of inflation generally. Here is what happens when they ignore it: https://www.pbs.org/wgbh/commandingheights/shared/minitext/ess_germanhyperinflation.html

 

[ToraToraTora]

hungary: https://en.wikipedia.org/wiki/Hyperinflation

 

[ToraToraTora]

....now I'm not suggesting it would get that bad but if it gets high it means the value of money reduces much more quickly. That mans interest rates will rise to prevent catastrophie. That's what this post is about hymie, do try and avoid one of the 5 reasons for stupidity you highlighted the other day.

[Hymie]

I’m certainly not a millionaire – but TTT has claimed that he is.

But I would be if I had been given significantly above inflation pay rises over my working life.

[youngmafbog]

//Both, incidentally, millionaires.//

Well wouldnt that rather point to the fact we do know about money?

Hymie, I really cant understand your logic.  Are you deliberatley being like this or is it just how you think?  I suppose the later explains why you post those inane videos though.

[ToraToraTora]

23:20, I have hardly ever had above inflation rises as a default. The banking world does not do that. Once again though you have to stop thinking like an individual.

[Hymie]

Youngmafbog said //Hymie, I really cant understand your logic//

 

Imagine I started work on a lowly salary of £1,500 p.a. and received a pay rise of 10% every year – after 45 years my annual salary would be over £100k (approaching what TTT earns).

[ToraToraTora]

23:04 oh dear 24 hours to try and learn something still can't get it can you.

[drmorgans]

 

Surely the problem was that Tories didn't want to continue with Sunak's terrible government and voted either Lib-Dem or Reform, with Labour's share fairly similar to that which Beardie Man got.