Comments on: Six reasons why Britain is booming again

By: send not to know for whom the bell tolls « Simple Living in Suffolk

send not to know for whom the bell tolls « Simple Living in Suffolk — Wed, 01 Feb 2012 18:52:16 +0000

[...] of being poorer. Plus, what’s the worst that could happen? You scrimp and save a bit now, Britain starts booming again and you end up sitting on some saved cash? Time for that trip to Australia, pop the bubbly and have [...]

By: An Interesting Taxonomy of Personal Finance approaches from Moneysaving Challenge « Simple Living in Suffolk

Sat, 21 Jan 2012 11:06:04 +0000

[...] of the same optimism, though in a more understated British way, is displayed by Monevator who is still upbeat by the end of Gruel Britannia, leading one commenter to observe he may [...]

By: Merv presses the Panic button – incoming fire observed from all points « Simple Living in Suffolk

Fri, 02 Dec 2011 11:59:43 +0000

[...] post-credit-crunch, I do not have much to lose, and the potential gains if I survive the storm and reach the sunlit uplands are high. At no time in the last decade have valuations generally been this good, and they will [...]

By: What is your number? How much do you need to live on? « Simple Living in Suffolk

Tue, 12 Apr 2011 11:43:51 +0000

[...] Monevator may have been right when he said Britain is booming again when viewed though the selective prism of the stock market. But it isn’t going to feel like [...]

By: The Gold Conundrum « Simple Living in Suffolk

The Gold Conundrum « Simple Living in Suffolk — Thu, 06 Jan 2011 20:50:39 +0000

[...] is that gold and silver belong in my tin hat portfolio. My ISA is predicated on the assumption that Britain is booming again, and that China and the United States will lead a global mega-boom lasting for the next 40 years, [...]

By: There’s nothing wrong with Schizophrenic Investment « Simple Living in Suffolk

Mon, 04 Oct 2010 17:53:25 +0000

[...] portfolio of real stuff, to hedge currency death, and the other half towards the sort of world Monevator describes. Most things revert to the mean, and in that case my shares will continue to rise. Then eventually [...]

By: Best September for 71 years for the Dow – but is it real? « Simple Living in Suffolk

Fri, 01 Oct 2010 14:23:14 +0000

[...] is a school of thought that Britain is quietly booming now. The stock market rise would seem to support that. I am not convinced, however – the apparent [...]

By: the Autumnal Equinox, when the light surrenders to the darkness « Simple Living in Suffolk

Thu, 23 Sep 2010 16:09:26 +0000

[...] to be a wider metaphor for the coming storms on the economic horizon. In terms of my shares ISA Britain is booming – indeed for all the talk of emerging markets a sturdy old investment trust I bought in July [...]

By: My Escape Plan « Simple Living in Suffolk

My Escape Plan « Simple Living in Suffolk — Wed, 04 Aug 2010 20:51:17 +0000

[...] skills in the post-peak ready scenario and at the same time I hedge this by investing assuming that Britain is booming again – or at least not taking on too much [...]

By: Peak Oil, Transition and Depression – how Do You Invest For That? « Simple Living in Suffolk

Fri, 16 Jul 2010 09:22:07 +0000

[...] for both views, accepting that to hedge some of the unknown I will lose money. I’d much rather this view turned out right, and my shares ISA and pension do the heavy lifting of securing my future, rather [...]

By: Young Couple Can’t Afford Credit Card Payment. Help Fix Their Money And Marriage

Sun, 07 Feb 2010 02:20:44 +0000

[...] Six Reasons Why Britain is Booming Again [...]

By: Niklas Smith

Niklas Smith — Mon, 01 Feb 2010 17:25:14 +0000

Interesting post. Nice to see some optimism (at least for the short term) backed up by sound arguments. People who say QE was not a success because broad money has not returned to pre-crisis growth rates are silly – the choice was between shrinking money supply (no QE) or stable money supply (with QE). Given the damage to the banking system it’ll be a long time before the money multiplier returns to pre-crisis levels. In fact, it may never do so because of higher capital requirements and more realistic risk-weighting.

I’m beginning to think that this implies that excessive inflation is not a big risk for the next few years: if we can’t expect sudden broad money growth and if unemployment will remain high, where could inflation come from? The fall in the pound is a one-off inflationary hit (unless sterling goes into a steady slide, which I doubt).

P.S. Apparently the Bank of England has stopped publishing figures for M4 (broad money supply) – at the same time as they began QE! My lecturer said she and other people have had to cobble together estimates from other data that the Bank publishes. I have no idea why the Bank thought stopping the publication of M4 statistics was sensible!