Owning your own home

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Dammit in reply to @Brommers

There will be some inflationary pressure. But my gut reaction is that it will be more than counteracted by reduced spending due to lockdown and reduced discretionary expenditure due to people feeling financially insecure, added to the deflationary effects of a truly epic recession. If I was the BoE Chairperson I'd be inclined to say 'fuck it, go big or go home'. I'm not, however, which is probably just as well.

Be interesting to see (although being in the middle of the Petri dish is uncomfortable), food will be more expensive, fuel (albeit at historic lows at the moment is dollar denominated, and when $1=£1 that's going to be painful) will be more expensive, energy will be more expensive, raw materials will be more expensive.

And, into this, the clear intention is to allow employers to drive down wages and benefits for workers.

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coventry_eagle in reply to @Dammit

UK borrowing will increase and the buyers will be overseas SUPRAS and Treasuries who'll hold on for the eventual appreciation of the Sterling and/or for forex exposure purposes.

FUN FACT: sovereign debt (the irony...) is usually subscribed by those who are dependent on the issuer I.e. T-Bills - by China, Japan AND believe it or not, the UK! Yes, the UK!

Back to the subject matter, printing money is not a bad thing, tempus, for as long as it's used for the right purpose.

Japan for example borrowed heavily post WW2 BUT they're still one of the leading economies. It was invested in the right manner.

As for inflation and the depreciating pound, intra fines, it's a good thing for the economy (not so much for you, Karen who's yearning for a holiday in Marbella and I), that's a story for another day.

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