By Frank Hovis
Now you see it now you don't!
Ignoring the unrelated aspect of a death three years' earlier of someone he knew this is just silly. How do you manage to get the papers to report you as having £500m of assets when you actually have £32m of liabilities? Answers on a Foxton's brochure to the usual address.
"I have CONSIDERABLY more debt than yowse"
By Frank Hovis
The story isn't particularly clear but I don't propose to start ploughing through the ONS datasets to get a more pellucid picture.
Ten years of ultra-low interest rates is making Britain a nation of borrowers rather than savers
Households became net borrowers in 2017 for the first time since records began Savings fell to their lowest since 1963 as families failed to set money aside Households spent £14.4billion more than they earned last year, figures showed Savers have been put off by paltry returns and record-low interest rates
This is the very definition of unsustainable; every year personal debt gets higher.
I don't even get the impression that people are being profligate; rather that so many are on low wages mean that in order to buy anything above a subsistence level, such as a basic foreign beach holiday, that money is having to be borrowed.
The only relatively painless way of resolving this is to let inflation run high for a few years with wage inflation being pushed up ? artificially so that the existing debt reduces in real terms and spending reduces below incomes so that overall debt isn't being further accumulated.
And to help that interest rates will need to be kept low with the obvious mechanism for this being to change the target BoE inflation from 2.0% to something higher (current inflation is 2.7%).
The next ten years is not going to be a good time for holding either cash or fixed rate bonds IMO. Pension deficits ahoy.
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