coolangatta

May be a stupid question.....but,
If you burn £100, who gains from your loss
Come on you financial bods, I know it's your day off but inform the ill-informed.

Coolangatta

fatherpierre

May be a stupid question????

TopBanana

In theory, everyone else with ££ because there is now less money chasing the same number of products and services. Of course, £100 isn't enough to make any difference at all. You'd have to burn billions in order to keep up with the government presses rapidly devaluing our currency. Bring back the gold standard.

coolangatta

So if we all burn a hundred quid then prices will fall
Does it lead to a crash and retail price reduction all round

Coolangatta.

Suresh

Inflation : low
Exchange rate : up
Prognosis : you have no idea what you are talking about!

TopBanana

Do you actually live in the UK?

Inflation
Press Association
20/8/06
The "real" rate of inflation for middle class households is more than four times the Government's official rate, it has been claimed.
According to Professor Richard Scase, an economist at the University of Kent, inflation for the middle classes is as high as 10% due to huge price hikes in the cost of energy, council tax and school fees.
Prof Scase believes the Consumer Price Index (CPI) - the benchmark measure for inflation - is meaningless for millions of consumers.

Money supply
18/8/06 - LONDON (AFX) - The Bank of England said M4 money, a broad measure of money supply, rose by 1.0 pct in July from June on a seasonally adjusted basis, for a 13.1 pct year-on-year rise.

turboman786

What exactly is a 'middle class household'?....is it one where people wear 18ct gold rather than 9ct sovereigns?....

Richard_P

I assume they mean your average person, who has some kids, drives a car, lives in a 3 bed house etc.

Point is, cost of living is through the roof!

Suresh

I don't live in the UK, but nonethess my subscriptions to both The Economist and Evo still turn up on time. Oh and we have the internet here now too!

• UK Inflation is 2.4% according to the relevant internationally comparable figure rather than professor Tumbleweed's best guess.
• The pound has increased in value significently compared to the currencies of Britain's major trading partners (EUR & USD) over the last 5 years.
• The M0 narrow money supply figure is the one you should be looking at if you are concerned about the growth of coins and notes in circulation. The most recent BoE figures for the part of M0 you are looking for is 5.4% per annum.

And the pound is being rapidly devalued according to you

J4CKO

iTrader: (1)

http://en.wikipedia.org/wiki/K_Foundation

TopBanana

UK inflation isn't 2.4%. Ask someone who actually lives here. 'Professor Tumbleweed' as you call him is clearly a damn sight more up to speed than you.

It doesn't matter whether it's cash or anything else, it can still be spent - M4 is of more concern.

Suresh

Thanks for your wisdom and insight.
I've cancelled my subscription to the Economist, as the journalists there obviously have no clue and internationally standard measures are obviously fraudulent and financial markets are wrong. Do you know if Tumbleweed publishes a weekly newspaper? I bet you thought that M4 was a motorway leading to Wales until you saw that informative article in the "Mail".


Oh and to answer the original poster - there is no winner if you burn a 100 quid. You will have destroyed wealth. Only accountants believe debits and credits have to match!

TopBanana

Ignorance and arrogance - a heady cocktail!

Suresh

You made an idiotic statement and got called on it. No need to get upset!

406dude

no expert here, but does it not depend on whether you believe in monetarism or not? Are there quite a few arguments against it? Like I say I'm no expert but I'm interested in this type of thing - can anyone enlighten me?