Cost of living crisis

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bonzosbeard
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Cost of living crisis

Post by bonzosbeard »

I understand if mods want to link this to the energy crisis but I think it could have its own thread.

The banks have put interest rates up today to stem inflation and stop the living crises. Obviously another whammy for mortgage holders.

I cannot see how that will stop inflation because of the obvious disruption to fuel and wheat etc.

Businesses in the entertainment sector like pubs and restaurants will surely struggle just when they need to get back after covid.

A report today on bbc stated that food could go up 15% this year. I really do worry for people. This is going to be a very difficult two years or more.
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Re: Cost of living crisis

Post by Shabu »

In the shop I work in food prices have been rising for a few months. Items that were $2.99 are now $4.25.

In addition we're also missing about a third of our products and others are extremely limited. We get one case of frozen rice per day when we could easily sell five. Same with salads.

Other companies we deal with have just gone out of business.

I can't see things improving in the next 18 months either.
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Re: Cost of living crisis

Post by RichieRiv »

THE Bank of England has raised rates. The lenders have to follow suit as the rate at which they borrow has also increased. Worth noting that the ECB have also increased rates before some of you lot start crying Brexit.

Will if effect inflation. To an extent, but the tools of old used by the BofE and central banks don't work in the new world order.

This is what happens when you print money so you cann prevent 80% of the population dying with Covid.

This is what happens when China chase a 0 covid policy and reduce output.

This is what happens when someone kicks off a war. Putin is winning the economic war.

People talked about the "new normal". Well forget covid because the new normal will be more normal interest rates and food being the same proportion of the weekly wage as 50 years ago.

If anyone has stocks and shares in telco, gaming, streaming services - basically any subscription business, get out as soon as you can.

I feel sorry for anyone under the age of 40 because they have never lived through an area of expensive money or food and have never had to think twice about that second holiday, new car, new kitchen etc.

Basically we are all ****ed.
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Re: Cost of living crisis

Post by MB »

It is going to be brutal for a lot of people, but at the same time there needed to be a correction in the spending culture. This is obviously a massive shock with Covid, the war etc all hitting at once and I feel sorry for the low income families who this will hit hard but above that category so many do not live within a realistic % of their means.

Food prices and product availability are just the start.
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Re: Cost of living crisis

Post by RichieRiv »

I honestly expect the following:

Cancellation of subscription services - Netflix, Amazon Prime, Sky, BT, mobile phones (people won't upgrade devices) and the other various subs people have.

I think Amazon will take a hit as people stop buying **** they don't need.

The contruction industry will shrink as prices of material increases and people can't afford the finance to pay for it. This has a massive knock on effect to the entire supply chain

Entertainment and Travel who are only just coming out of their worst period.

This is going ti a Frankenstein recession. Made up of the elements of the Great Depression, 70s (oil crisis, hyperinflation), and early 90s (double digit interests rates and mass repossessions).

I feel sorry for those who are on 90% L2V mortgages and those who have overstretched themselves on their mortgages.
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Re: Cost of living crisis

Post by MB »

Subscriptions are an interesting one Richie. On the one hand an obvious saving, but as people go out less in some ways they re seen as an essential.

People will cut down though. We have a few different ones and will probably cancel some for a little while and see what offers come up.

Just glad I put the brakes on the wife's idea to move to a bigger house a few months back.
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Re: Cost of living crisis

Post by bonzosbeard »

I did/do have a big mortgage from 5 years ago but was payable back then and wife and I have both had a couple of promotions each since then. I expect we will need them. Will also need higher pay rises than the average 1% a year over last 12 years .

It might not help with rising food prices but will help my mortgage look less to my wages. Luckily I've still got 2 years on my set rate but will need to be ready for a massive hike then.

As for subscriptions, we keep doubling players wages paid for by football tv subscriptions and to a lesser degree tickets. Once less people use that or go to games there may be a shock coming to clubs or players.

So I think I'll survive but many won't. And I'll be keeping my 70mpg diesel with £20 a year tax as long as I'm legally allowed to.
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Re: Cost of living crisis

Post by EvilC »

I agree with Rich here. This will be absolutely brutal.
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Re: Cost of living crisis

Post by bonzosbeard »

EvilC wrote: Thu Jun 16, 2022 7:17 pm I agree with Rich here. This will be absolutely brutal.
1930s style?
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Re: Cost of living crisis

Post by 'stone hammer »

RichieRiv wrote: Thu Jun 16, 2022 5:14 pm
I feel sorry for anyone under the age of 40 because they have never lived through an area of expensive money or food and have never had to think twice about that second holiday, new car, new kitchen etc.
Indeed mate! Although I feel sorry for all you old ****ers that have had to live and cope with multiple recessions as a working adult.

I do 400 miles a week travelling to work. Watching fuel prices double, food and energy prices drastically increase while my wage stays the same is not something I want to get used to.
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Re: Cost of living crisis

Post by EvilC »

bonzosbeard wrote: Thu Jun 16, 2022 7:37 pm 1930s style?
Honestly I couldn’t really say. It is hard for me to benchmark to the 30s and what happens with Ukraine is a big factor on how bad this is.
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Re: Cost of living crisis

Post by RichieRiv »

'stone hammer wrote: Thu Jun 16, 2022 7:42 pm Indeed mate! Although I feel sorry for all you old ****ers that have had to live and cope with multiple recessions as a working adult.

I do 400 miles a week travelling to work. Watching fuel prices double, food and energy prices drastically increase while my wage stays the same is not something I want to get used to.
I'm 45, so the 70s was more about filling nappies, but my mum likes to tell me how ****ing miserable it was. 3 day week, no electricity at certain times. The early 90s was a little bit more real. I had school mates that would just disappear - their house had been repo'ed so they had gone to live with their grandparents.

2009 I was hit. Lost my job, end up labouring for 5 months, site foreman for 3.5 months. The wife and I managed to keep our heads above water but it was a real belt tightening. No going out, no holidays, no going overboard on the weekly shop.

But my point, was not designed to be gloating, its more a case of being prepared through experience. I think for many professional 20 and 30 somethings they don't know what is about to hit em.

Put your money on labour winning the next election.
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Re: Cost of living crisis

Post by Shabu »

RichieRiv wrote: Thu Jun 16, 2022 8:41 pm
Put your money on labour winning the next election.
And on the Republicans winning over here.
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Re: Cost of living crisis

Post by ironsonthebrain »

bonzosbeard wrote: Thu Jun 16, 2022 7:37 pm 1930s style?b
Maybe. But maybe like 2008
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Re: Cost of living crisis

Post by ironsonthebrain »

RichieRiv wrote: Thu Jun 16, 2022 8:41 pm I'm 45, so the 70s was more about filling nappies, but my mum likes to tell me how ****ing miserable it was. 3 day week, no electricity at certain times. The early 90s was a little bit more real. I had school mates that would just disappear - their house had been repo'ed so they had gone to live with their grandparents.

2009 I was hit. Lost my job, end up labouring for 5 months, site foreman for 3.5 months. The wife and I managed to keep our heads above water but it was a real belt tightening. No going out, no holidays, no going overboard on the weekly shop.

But my point, was not designed to be gloating, its more a case of being prepared through experience. I think for many professional 20 and 30 somethings they don't know what is about to hit em.

Put your money on labour winning the next election.
I hope you’re right about the next GE, although I have serious reservations about Starmer. Face it, he’s no leader is he? And with all the stuff the Tories are doing ( another ethics adviser gone today) Starmer should have Labour 20-25 points ahead at least.

In 2019 almost everyone in the media was saying Labour would bring chaos if they won. Funny how things turn out with a landslide Tory win , Hard Brexit and a PM prepared to break national and international laws to remain in power, while the country slides towards being a rogue state.
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Re: Cost of living crisis

Post by ironsonthebrain »

bonzosbeard wrote: Thu Jun 16, 2022 3:33 pm I understand if mods want to link this to the energy crisis but I think it could have its own thread.

The banks have put interest rates up today to stem inflation and stop the living crises. Obviously another whammy for mortgage holders.

I cannot see how that will stop inflation because of the obvious disruption to fuel and wheat etc.

Businesses in the entertainment sector like pubs and restaurants will surely struggle just when they need to get back after covid.

A report today on bbc stated that food could go up 15% this year. I really do worry for people. This is going to be a very difficult two years or more.
It will be a VERY difficult couple of years for a lot of people. Seeing as the government are doing nothing to mitigate this how long before there’s civil disobedience?
I’d reckon it’ll kick off if the Grenfell Inquiry report comes back next year as a whitewash
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Re: Cost of living crisis

Post by whuben »

RichieRiv wrote: Thu Jun 16, 2022 8:41 pm I'm 45, so the 70s was more about filling nappies, but my mum likes to tell me how ****ing miserable it was. 3 day week, no electricity at certain times. The early 90s was a little bit more real. I had school mates that would just disappear - their house had been repo'ed so they had gone to live with their grandparents.

2009 I was hit. Lost my job, end up labouring for 5 months, site foreman for 3.5 months. The wife and I managed to keep our heads above water but it was a real belt tightening. No going out, no holidays, no going overboard on the weekly shop.

But my point, was not designed to be gloating, its more a case of being prepared through experience. I think for many professional 20 and 30 somethings they don't know what is about to hit em.

Put your money on labour winning the next election.
Will never forget the 90s. As a kid we had everything then lost it all. My old man had to go an work on building Canary Wharf with a broken ankle, then bought an old 7 seater hearse and done mini cabbing of a night just to keep a roof over our head

I’m in the position where I’m comfortable and don’t really need to worry to much about the next few years, but I feel as a society we need a kick in the bollox to make people realise how good they’ve had it
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Re: Cost of living crisis

Post by the pink palermo »

The oft quoted 15% interest rates we endured is a touch misleading : the amounts borrowed were generally lower, they did still hurt mind you.

Todays issue is the sheer scale of personal debt that too many seem happy to carry, and for clarity I am not talking about people in low paid jobs struggling to feed families, they're going to be screwed, but not through their own fault.

Middle class families however, the two foreign holidays, two car (leased), bottle of wine a night mob that eat out three times a week and subscribe to one of those completely ****ing stupid meal kit delivery services, will be hit hardest.

To get through, cancel all high interest debt asap, paydown as much as you can of low interest debt, forget holidays, treats, or going out.

It'll be over in 30 months, and if you are really lucky your living standard will be back to where it was in 2015.
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Re: Cost of living crisis

Post by smuts »

Who needs a pandemic to be stuck in doors all year?

What a **** show.
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Re: Cost of living crisis

Post by Rust »

I'm 30 this year, and people my age have had:

At 16: 2008 crash. At 18: austerity. At 24: Brexit. At 28: Covid. And now this.

Not a victim at all, but it does feel like we've never known 'boom' times. Then again, we're very privileged in many ways.

Am I right in saying this one is happening slowly? I don't remember much of 2008 but it felt more sudden.
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