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BBKing · 12-02-2008, 22:36

2p on petrol tax is dwarfed by the effect of the post-Iraq oil price rises.

What we're forgetting slightly is the ability to cut costs by using fuel more efficiently, which becomes ever more incentivised with every increase. Also manufacturing costs for the goods are still falling and there's always those East European hauliers. What do you want, inflation or roads full of Polish truckers blindly following the satnav under low railway bridges? Difficult one.

Still, stagflation (a recession where prices go up) is a definite possibility, which is great news, particularly if you have a large recent mortgage. Why? Because it reduces the value of your debt so you have to work less to pay it off, plus interest rates have to come down to try and cure the recession so you pay less interest. Kerching time, if you keep your job that is.

Inflation is bad if you have lots of savings, stagflation is doubly bad because you don't earn interest on them, but it's great if you have lots of debt.

12-02-2008, 22:36	#3
BBKing R.I.P. Join Date: Jun 2003 Location: London Services: 20Mb VM CM, Virgin TV Posts: 5,983	Re: Inflation 2p on petrol tax is dwarfed by the effect of the post-Iraq oil price rises. What we're forgetting slightly is the ability to cut costs by using fuel more efficiently, which becomes ever more incentivised with every increase. Also manufacturing costs for the goods are still falling and there's always those East European hauliers. What do you want, inflation or roads full of Polish truckers blindly following the satnav under low railway bridges? Difficult one. Still, stagflation (a recession where prices go up) is a definite possibility, which is great news, particularly if you have a large recent mortgage. Why? Because it reduces the value of your debt so you have to work less to pay it off, plus interest rates have to come down to try and cure the recession so you pay less interest. Kerching time, if you keep your job that is. Inflation is bad if you have lots of savings, stagflation is doubly bad because you don't earn interest on them, but it's great if you have lots of debt.