Quote:
Originally Posted by steve-45
Or house prices just to increase in value at the annual rate of inflation.
The spiraling above inflation prices rises does not do you any good unless you want to sell up and live in a tent.
Example
100K house increases in price by 15% - now worth £115K
But, what I would really like is a £200K house, however that now costs £200K + 15% now equals £230K
So, 1 year ago I was £100K away from my dream house - now I am £115K away !
|
Agree. The system is set up to reward those who control 'printing' the fiat currency in the central banks. By the time the currency units (pounds, euros, dollars etc) reaches those at the bottom in the 'main street' economy, they're already depreciated in purchasing power. There is no real money in the vaults of most banks. Real money is gold (J P Morgan). When you apply for a mortgage, the currency is literally 'magicked' into existence on a digital ledger. Henry Ford once said that if the American people truly understood how the Banking System worked there would be riots in the streets. Interesting how Theresa May said to a nurse 'there is no magic money tree' to fund a £1 billion pay rise for the nurses. Yet there is apparently a magic money tree that's already found over 500 billion to combat Covid-19. Now if we had actually joined the Euro and lost the ability to print the pound we'd have been even more royally scr**d by the financial black swan caused by Covid! Britain must never give up our ability to create currency according to the national imperative. Joining the euro would have made us a vassal state with our hands held out in an emergency like Oliver Twist! All modern central banks target 2% inflation, but miss the target regularly on both sides of the equation. This is part of the reason for boom and bust. Inflation hurts the common person. Increases in house prices are largely caused by inflation compounding which harms the first time buyer. The apparent capital gains accruing to the housing market are largely illusory. The value of the houses didn't go up, it was the value of the currency that went down. Rant over
9th July 2020, 20:06
Threaded Mode