Mervyn King says pay squeeze necessary!

  Uboat 21:17 25 Jan 2011
Locked

Oh really?

click here

  Quickbeam 21:45 25 Jan 2011

He'll be leading by example then to demonstrate the 'all in it together' aspect... no?

  DippyGirl 00:56 26 Jan 2011

King - "Attempts to resist their implications for real take-home pay by pushing up wages would require a response [from the Bank's monetary policy committee]."

...guess that just applies to us Proles!

  birdface 11:02 26 Jan 2011

Things can only get worse.
Interest rates will start going up which means mortgages will be more expensive.
I am afraid I can see I can see lots of workers striking for better pay deals and can see another Fuel blockade emerging with the ever rise in fuel duty.
It may not be this month or next but before the end of the year I would imagine.
Just history repeating itself so we know what to expect.

  Uboat 11:54 26 Jan 2011

buteman you are totally correct!
news just in...

click here

  wids001 11:56 26 Jan 2011

I wholy agree with Buteman and have been saying exactly this on this forum for months. We were softened up by the press at first with their expose' on benefit cheats and how this government would sort these out, whilst at the same time announcing increases in VAT, pay freezes, and the like. Now that things are starting to bite, fuel and food prices rising, family budgets being cut, and the real possibility of interest rate hikes, mortgage payments increasing etal, the whispers of discontentment are starting to appear.

As Buteman says, it might not be this month or next, but come the end of the year I can see mass demonstrations, strikes leading to shortages and even civil unrest!

I honestly believe that the coalition needs to begin practicing what it is preaching and if we are really "all in this together" then urgent legislation to control rising prices (and blatent profiteering) needs to be brought in.

  Uboat 12:04 26 Jan 2011

wids001

i too agree with you, however when you stated "I honestly believe that the coalition needs to begin practicing what it is preaching"

They are doing just that and like cameron stated "We need to cut deep and fast to claw some of the money back" OH they are deffo doing that! they are going for the Jugular and i cant see it the public letting them get away with it once it all starts...i see civil unrest too...but then months ago i did state this..

UB

  Uboat 12:11 26 Jan 2011

Ive just seen this on BBC its just come out, so basically much less mortgages are been handed out in January 2010 in fact 10% less which is a huge figure! so they could possibly be a tsunami of houses for sale making the prices plummet and on the same breathe the interest rate may go up.?

What a dire future we have been left in! i am so glad i don't own my home i feel so sorry for first time buyer cause the lucky one's that can get one well they wont know when is the best time to buy due to negative equity & all the uncertainty


click here

  birdface 14:09 26 Jan 2011

What will happen is workers will be made redundant interest rates will steadily climb and those made redundant will after time no longer be able to pay for their mortgages and they will be evicted.
New but not all factories will offer jobs at the minimum wage knowing that the unemployed will be desperate to take any type of job to try and keep their homes.
loan sharks should do a bumper trade.
Unfortunately whether we are all in the same boat or not it is always the poorest that gets hit the hardest.
Rough figures for the last quarter was that approximately 45.000 joined the dole queue in that time.
But 78.000 people actually lost there jobs but not all signed on.
So just wonder how many will follow them this year 1.000.000 or 2.000.000 I can definitely see another recession on it's way no matter what the Government says now.

  jakimo 15:23 26 Jan 2011

'i am so glad i don't own my home'

I bet your landord is as well,you own nothing,and keep his pockets well-lined

  Snec 16:00 26 Jan 2011

Pay must suffer to stop people buying on credit.
Until people realise the parlous condition we are in was caused by debt, and stop borrowing, then this country will remain in trouble.

NuLabour borrowed to spend wildly. UK residents have been educated to believe in taking credit as a way of life. Maggie was responsible for a lot of this way of thinking too.
When someone (for instance) takes credit to buy an unecessary purchase like a £2500 computer that demonstrates to me no understanding at all of the fundamentals of our current problem. But can you blame them? Probably not.

It seems to me that there are those who will never learn and if they can't or won't then we will remain in trouble for years to come. Borrowing has to stop, it's time to tightn belts, that is both the government and the populace at large. We must all learn to live within our means. Only then can we all become truly solvent.

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