More QE and inflation on the way?

[DimPrawn]

NS&I pulls inflation-linked savings certificates - Telegraph


National Savings & Investment has pulled its hugely popular inflation-linked savings certificates.


The announcement is the latest blow to savers who have seen their income plummet at a time when most savings accounts fail to offer any real rate of return once inflation and tax are taken into account.


NS&I’s website and call centres stopped taking new sales of Savings Certificates yesterday. Postal applications received today (7 September 2011) will be honoured, but all postal applications received after midnight tonight will be returned to the customer.



I think they did this last time before the last round of QE to stoke debt busting inflation.

[TimberWolf]

Britain and the PIGS seem to be banking on inflation saving the day.

[scooterscot]

George's two finger salute to poor people.

[SneakySimon]

George's two finger salute to poor people.

They should stop being poor then

[AtW]

Well, that's nice but how the Govt is going to deal with all public sector workers whose contracts are linked to inflation? Redefining it only saves money so far.

[TimberWolf]

Well, that's nice but how the Govt is going to deal with all public sector workers whose contracts are linked to inflation? Redefining it only saves money so far.

By lying about inflation of course Isn't this what governments do?

[PAH]

Yep, tweak the lower inflation index to keep it artificially low, and tie interest rate decisions to it, and public sector pay and pension deals.

Then pension and pay themselves according to the more realistic other inflation index.

[BrilloPad]

Weimar here we come...

[AtW]

Weimar here we come...

The good news is that unpaid taxes will also be devalued

[ChimpMaster]

I'm just glad I got into the bonds when I did! There's just no point having cash in the bank these days.

So what else to do? I don't trust gold as I reckon it's overvalued, and shares are not yet cheap enough to tempt me (I'm looking for sub-4000 on the FTSE / 8000 on the DOW).

Property is the only long-term investment worth sticking money into. Why? Well...
1) You get regular rental income (of which there is rising demand)
2) Someone else pays off the BTL mortgage.
3) Rising inflation helps to erode the value of your debt.
4) House prices may in fact fall over the next few years, but they will eventually rise (in the UK, SE anyway) and house prices won't go that low anyway.