It is Obvious

Chris Rick has got altogether too much to say

Archive for September, 2017

Won’t get fooled again

Posted by chrisrick13 on September 13, 2017

It is obvious: I can eat lots of things


I have stopped watching tv. I am smug. Not turned a tv on in over a month. The only person who turns the tv on in my house is my wife. She does that to watch Coronation Street. This if OK with me as it further reinforces my behaviour. I have also seen through the extremely convoluted plots of the drama series that are usually shown at 21:00 during the week. No longer do they lure or allure me.

So I am denied a huge source of data. It is data the I cannot verify as information. However at almost 100% where I can verify I discover that it is not information. I remember working on the Eurotunnel project and looking to see if there were two tunnels being dug. The logic was that what I read in the press and saw on tv did not describe the project I was working on.

Yesterday I missed inflation rising to 2.9% as measured by the new index. Were they to use the old index it would be at 3.9%. The new index defines benefits increase each year and the like. The former index defines pension increase for members of the MPC. No mention of RPI, that former index.

This has done a lot for my blood pressure. The BBC can badly represent reality and I am just unaware. I certainly don’t need any political comment any more. I will vote for that nice Mr Corbyn from now on – I know which side by state pension and NHS are buttered on.

I need to keep an eye on Brexit. I will take to the streets if I see the government weakening on that. Though Teresa May has nothing to lose. Why not go for it properly? She just might. Will we see a saint May to join saint Thatcher? Must have a word with the Pope.

I know house prices are moving but I care little of the direction. I am very sure that wage increases are way below the rate of inflation, of whatever stripe. This is a problem I can understand and I am sure of my information. This means there are a lot of people with an increasing asset and decreasing income. They are mostly unaware of this as the static income is eroded by inflation. They do not see a decreasing amount. Decrease someone’s salary and listen to the howls. Make it buy less and there is not a whimper.

The increasing asset is interesting. I own my house and do not share ownership with the bank. Am I going to cut my living standard or spend more of my inflated pounds and eventually have to sell my house to pay the bills? Do not weep for me, I have a second home. What of the people who only own a fraction of their house sharing it with the bank? What of the people who have a debt secured against their house bigger than the value of the house?

Alas, this is the ‘bigger fool’ model in operation. My house is only worth £1m if I can find someone stupid enough to pay £1m for it.

I wonder if there is a tipping point when cashing up with pounds in your pocket and nowhere to live becomes better than hanging on in your house. Not paying the interest on your house loan and giving it back to the bank is a good option if you have no other assets to attach and an income that barely feeds you (and cannot be attached by a court).

So the trigger, that I am constantly looking for, might simply be a big enough shrinkage of the purchasing power of the incomes of enough people to make them sell. A trigger that was there all the time and just creeps up on us. You can fiddle inflation rates all you want but when the salary does not pay the bills then people will take action. At least when they cannot borrow any more money.


It is obvious: I can eat lots of things, even a brick…eventually

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