Credit deflation and the reflation cycle to come (part 3)

[Boglet]

2 hours ago, JimmyTheBruce said:

https://www.bbc.co.uk/news/uk-england-suffolk-62631659

Pretty much ticks all the boxes this one.  On PIP, long covid, can't afford essentials like having hair done, eats salad but 18 stone etc, etc

 

This one ticks a few boxes as well 

If you think you've got it hard now love, let's check back later and see how well you get on as a single mum.

 

https://www.bbc.co.uk/news/uk-england-derbyshire-62124943

 

[Axeman123]

5 minutes ago, Boon said:

A slow cooker uses around 1kw for 8 hours, a microwave maybe 0.1w for 10 minutes, so it is correct it is cheaper. But the cost of a microwave meal outweighs the cost of cooking your own food, so entirely a false economy.

Exactly. £4 doesn't get you much of a ready meal, but that same amount would buy ingredients for at least 4 servings of slow cooker food. Obviously the 3 leftover servings would need warming in the microwave, but the remaining £12 would more than cover it.

[Harley]

1 hour ago, Yadda yadda yadda said:

The trouble with the one off payments is that they've been in addition to benefits increases rather than in partial substitution. Benefits payments are going up by inflation and they're getting an energy bung of £650, so far.

If September's inflation figure is 11% they won't have the balls to give a 5.5% benefits increase and a 5.5% bonus.

Benefits are running away from earnings in a death spiral.

Rich pensioners are going to get soaked by tax. Merge NI with Income Tax. Increase the tax free allowance to £15k (it should be uprated to about £14k to keep up with inflation anyway) and make high income pensioners pay.

Amended.  I might be OK with this personally, although a few years to go.  £15k each for the two of us plus our capital allowances and our low cost lifestyle sounds OK.  But then maybe not after a few years inflation.  Targets higher income pensioners and helps the low paid?  Are bennies taxed too?  Should be. 

[SpectrumFX]

1 hour ago, marceau said:

On the bennies front it seems like a no-brainer for them to go further down the one-off targeted payments route and avoid the indexation hit. Time is running out for this year though.

Pensions in payment is much harder. Just using the tax bands won't really cut it given the amounts involved, and for every public sector fat cat with £40k+ pension, there's hundreds of poor fuckers with less than £10k. Reduce indexation across the board and you'll destroy the second group. Perhaps an indexation taper above certain levels of pension income would work?

An absolute public sector pension cap set at something like the median wage (or lower) would be ideal, but I can't see any government being willing to take the flak you'd get bringing that in. It would start a war with the entire senior civil service.

A big personal allowance with a high income tax rate could work well, if you combined it with a decent lifetime allowance on pensions and decent tax relief on pension contributions so that people in work could dodge the income tax.

They won't make any hard choices though, so currency collapse is the most likely outcome.

[Boon]

15 minutes ago, Boglet said:

 

This one ticks a few boxes as well 

If you think you've got it hard now love, let's check back later and see how well you get on as a single mum.

 

https://www.bbc.co.uk/news/uk-england-derbyshire-62124943

 

I don't know, wouldn't she actually be better off thanks to all the benefits?

At only £300 rent a month it sounds like the husband's brother is a freeloader.

[Yadda yadda yadda]

7 minutes ago, Harley said:

Amended.  I might be OK with this personally, although a few years to go.  £15k each for the two of us plus our capital allowances and our low cost lifestyle sounds OK.  But then maybe not after a few years inflation.  Targets higher income pensioners and helps the low paid?  Are bennies taxed too?  Should be. 

Interesting idea taxing bennies. Could you imagine the media furore if that happened? A lot would lose £100+ per week. They'd be all over the food banks whilst workers on similar incomes would be bemused.

Edit to add that many people on in work benefits will be paying tax on the earned portion of their income.

[AWW]

16 hours ago, Axeman123 said:

Macro-economic indicator of used enthusiast cars losing value:

A long way still to go, based on the white Merc with gullwing doors going 115K to 200k, and now down to ~160k. Anyone buying one at 200k to speculate using a HELOC is in a world of hurt I imagine.

(Probably not worth watching just for that though, but interesting to see normies catching up to thread themes)

As someone who has a couple of nice classics in the garage, I welcome a correction, because the bubble has also driven up parts prices and insurance to such an extent that I don't use them.

[Harley]

25 minutes ago, Yadda yadda yadda said:

No, it is a daft way of presenting the data. As they are arrogant and think the plebs are thick it has to be shown as an average total. The cap is actually a unit price. Effectively we have full price controls for everyone not fixed.

I wonder if the current figures for energy usage are being used for forward market purchase. Eg no demand destruction is factored into the price. This the price will fall when demand inevitably falls. Wishful thinking?

It was in jest!  Maybe a bit of infantile "grounding" by them as in "my bill isn't as bad as that, happy days"! 

[Harley]

3 hours ago, TNS said:

+80% to £3549 #assinvasion

Keep this up and my techosplurge on an ESS may become an "investment"!

[Harley]

15 minutes ago, Yadda yadda yadda said:

Interesting idea taxing bennies. Could you imagine the media furore if that happened? A lot would lose £100+ per week. They'd be all over the food banks whilst workers on similar incomes would be bemused.

Edit to add that many people on in work benefits will be paying tax on the earned portion of their income.

I would love to watch "them" square that circle with the single bloke working all hours in a warehouse (and more) or even a pensioner paying tax (ok on some untaxed income going into the pension but that's similar to the bennies!).

[spunko]

I've started Part 4 of this thread: