Inflation

[Fittster]

Well I could start another thread on what a useless scum bag Merv is but I think we all accept that now. What is interesting is that central bankers and politicians are scum everywhere:

"Inflation rose by 4.9pc in China in January, remaining stubbornly persistent despite two interest rate rises in the final quarter of last year.

The reading came in lower than expected, with a consensus of economists predicting inflation would touch 5.5pc.

However, there were suggestions that the figure had been “massaged” after China’s National Bureau of Statistics (NBS) said it had changed the composition of the consumer price index basket, reducing the weighting of food.

http://www.telegraph.co.uk/finance/china-business/...

[Gargamel]

Speaking as someone with irresponsibly high debts, I say bring it on.

I am lucky I guess that I can keep my salary levels moving enough to compensate whilst real world value of my debt reduces.

Thanks Merv, you are a hero to me. Any chance of hitting 20% in the near future...

[turbobloke]

As you say, significant wage inflation is needed in parallel, on a wider basis this isn't looking likely for a year or so at least.

[Gargamel]

turbobloke said:

As you say, significant wage inflation is needed in parallel, on a wider basis this isn't looking likely for a year or so at least.

True, and it can't (in theory) happen until unemployment reduces and that may be even longer away.

I guess were I in power now, I'd take a hit on the short term, by reducing income tax, something meaningful like putting in a floor of £10,000 before you trigger any income tax.

Yes we'd get less revenue, but not massive sums, I'd also set the minimum wage therefore at £9,999 per annum. I think that could see a decent return for employers and employees and get unemployment down and help reduce the benefits bill.

[crankedup]

Gargamel said:

True, and it can't (in theory) happen until unemployment reduces and that may be even longer away.

I guess were I in power now, I'd take a hit on the short term, by reducing income tax, something meaningful like putting in a floor of £10,000 before you trigger any income tax.

Yes we'd get less revenue, but not massive sums, I'd also set the minimum wage therefore at £9,999 per annum. I think that could see a decent return for employers and employees and get unemployment down and help reduce the benefits bill.

Tax floor has been set at 10k.

[Gargamel]

No, I pay tax after £7000 ? How did you come to this conclusion

[EDLT]

It hasn't happened yet akaik, it was in the Lib Dem manifesto so it probably won't happen.

[paulrockliffe]

It has gone up from £6475 to £7475 for the coming year, I imagine it will keep increasing, but wouldn't be overly surprised to be proved wrong.

[Digga]

paulrockliffe said:

It has gone up from £6475 to £7475 for the coming year, I imagine it will keep increasing, but wouldn't be overly surprised to be proved wrong.

On the one hand, it's slightly repugnat that - epsecially in light of the 'do as we say' minimum wage legislation - people earning significantly less than this are taxed. On the other hand, more people contributing tax and participating in the system has its merits.

[ninja-lewis]

EDLT said:

It hasn't happened yet akaik, it was in the Lib Dem manifesto so it probably won't happen.

Plan is to raise the threshold to £10,000 over the life of the Parliament - so up to about £7,000 this year, £8,000 next year and so on.

[sharpfocus]

Fittster said:

Well I could start another thread on what a useless scum bag Merv is but I think we all accept that now.

An utter .

Of course, that's one thing, but why the fk is there an inflation target and the rigmarole of letter writing when it's inevitably missed month after month if nothing's done about it?

Wasters, the lot of them.

[Ozzie Osmond]

It'a all in the Sun today!

Page 14 features a nice graph showing the increase in year on tyear inflation between June 2010 and Jan 2011. It's an almost vertical spike since Nov 2010! What they decided not to draw to the attention of readers what the vertical axis starts at 3% and stops at 4%.....

Meanwhile nearer the front of the paper Emily says, "In the words of the late Walt Disney, I always look on the optimistic side of life, but I'm realistic enough to know life is a complex matter". I'll let you guess what Emily is and isn't wearing.....