BoE: Brits need to accept they are now poorer

Businessman said:
Well this thread is about Britain not North America. House prices here in the UK went up 6x since 1997. And Gold went up 6x. And stocks went up 4x (was 5x at the high but have pulled back recently).

UK CPI has been just 85% since 1997, even when including the high inflation of the last 18 months.

It is a psychological thing, you pay your bills every month and notice the increase. But with stocks instead of 1000 share you can only buy 200 and you don't notice that your money has devalued because stock splits trick you and hide the inflation as well.
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The average price of all real estate properties as of end of April 1998 was £69,747. Today it's £225,910, a growth of 3X. The FTSE 100 on May 1, 1998 was 6010.30. Right now it's at 7859, a growth of just 31%. Gold price on May 1, 1998 was $306.90 per oz. Today it's $2003 per oz, a growth of actually 5X. All of the actual growth rates are lower than you think. But if you had actually invested in gold 25 years ago, today you would be well covered for inflation. This is why the old adage, whatever happens, buy gold. Gold is more liquid than real estate but since you hold real estate, you will be all right. You will be well covered for inflation.

Corporate actions like stock splits/reverse stock splits do NOT change the overall value of the stock. The total value of your investment still stays the same; it's just the number of shares that you hold changed according to the ratio of the split/reverse split. They did not hide inflation.

The people who are affected most adversely in the world not just in the UK by this inflation are actually the young people or people who do not have anything invested, either in real estate or gold or any financial securities. Unless their wage growth has grown higher than the inflation rate over the last 25 years, if they do not have anything invested, then yes they will be feeling the effects of inflation the most but people like you who are well invested in at least one asset, you are actually ahead not poorer.
 
Drawdown Addict said:
I never understood Brexit, neither saw the benefits of it.
Who in their right mind could think that closing borders and imposing new regulations to businesses would be beneficial to a country? I am not British, so I always saw the process with an open mouth.
The UK will rejoin Europe, slowly slowly, not officially but will try to get to where it was the Brexit mess.
As an example:

https://www.independent.co.uk/travel/sunak-brexit-deal-travel-chaos-b2326311.html
https://www.bbc.com/news/explainers-53724381

They are calling it "New Brexit Deal"

But I would say that the UK has way more important issues to deal with:


Being poorer is the least of their problems now.
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Brexit is about taking the ownership of UK back. EU really should've been just a trade agreement or trade pact among all nations but instead it's become an all-encompassing regime that directly threatened the sovereignty of UK and that is unacceptable, not just to UK but to all countries. They are just trying to punish UK because UK left just like an abusive husband who's trying to punish his wife who dared to leave a controlling relationship but trust me, in the long run, unless EU goes through some kind of reform it's a good thing that UK left. UK is just going through an adjustment period after the Brexit and adjustment periods are always difficult and what made it worse is the war on Ukraine and covid with neither of the them being UK's fault.
 
TheDawn said:
Brexit is about taking the ownership of UK back. EU really should've been just a trade agreement or trade pact among all nations but instead it's become an all-encompassing regime that directly threatened the sovereignty of UK and that is unacceptable, not just to UK but to all countries. They are just trying to punish UK because UK left just like an abusive husband who's trying to punish his wife who dared to leave a controlling relationship but trust me, in the long run, unless EU goes through some kind of reform it's a good thing that UK left. UK is just going through an adjustment period after the Brexit and adjustment periods are always difficult and what made it worse is the war on Ukraine and covid with neither of the them being UK's fault.
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You definitely sound like a Brexiteer. Sentences like "Abusive relationship with the EU" and "Take ownership of the country back" would make Donal Trump proud.

I lived in the UK while Brexit was on the way and I learned the hard way to not to argue with Brexiteers but I will add something: If you still think of nations as sovereign countries where their politicians control their economies you live in a very distant past from what it is today. Unions of countries are pushing agreements all over the world and the UK has left a very important allied. The UK simply can't stand a negotiation against China or India on its own, EU members know that very well.
 
Drawdown Addict said:
You definitely sound like a Brexiteer. Sentences like "Abusive relationship with the EU" and "Take ownership of the country back" would make Donal Trump proud.

I lived in the UK while Brexit was on the way and I learned the hard way to not to argue with Brexiteers but I will add something: If you still think of nations as sovereign countries where their politicians control their economies you live in a very distant past from what it is today. Unions of countries are pushing agreements all over the world and the UK has left a very important allied. The UK simply can't stand a negotiation against China or India on its own, EU members know that very well.
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I had to switch browser to see who was the brexiteer.
Luckily I have him on ignore for other reasons lol

Brexit hit me in the balls regarding business, asset (poor GBP) and personal.
But it did worse to the young british generation.

The generation that does not want to have a stiff upper lips, or go through a pain that is easily compared to WWII by Brexit lovers, or sacrifice their opportunities for the sake of a sovereignty that was never at risk, as they always had a custom made deal with the block.

The all thing was a political bickering of old "Eton" fuckers that ruined businesses and opportunities for many.
 
Drawdown Addict said:
You definitely sound like a Brexiteer. Sentences like "Abusive relationship with the EU" and "Take ownership of the country back" would make Donal Trump proud.

I lived in the UK while Brexit was on the way and I learned the hard way to not to argue with Brexiteers but I will add something: If you still think of nations as sovereign countries where their politicians control their economies you live in a very distant past from what it is today. Unions of countries are pushing agreements all over the world and the UK has left a very important allied. The UK simply can't stand a negotiation against China or India on its own, EU members know that very well.
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You said
Drawdown Addict said:
I never understood Brexit, neither saw the benefits of it.
Who in their right mind could think that closing borders and imposing new regulations to businesses would be beneficial to a country?
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So I tried to explain to you why Britain wanted to exit from EU. And just because UK exited from EU doesn't mean that UK closed its border (although it should and it's really a bad thing in many ways) but it's EU who refused to trade with UK anymore and kicked UK out of many agreements just to punish UK. That's EU not UK.

Drawdown Addict said:
I am not British
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EXACTLY. You won't understand it from UK's point of view. UK should've never joined EU if it had listened to Margaret Thatcher who saw EU for exactly what it was and warned UK about the fallacy of joining EU 33 years ago:


Drawdown Addict said:
The UK will rejoin Europe, slowly slowly, not officially but will try to get to where it was the Brexit mess.
As an example:

https://www.independent.co.uk/travel/sunak-brexit-deal-travel-chaos-b2326311.html
https://www.bbc.com/news/explainers-53724381
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No UK will not rejoin EU, not when EU is in its present form. The most what UK should do is negotiate some kind of trade agreement with EU IF it's suitable for UK. UK should at the same time establish trading with other countries in the world. EU shouldn't be its sole venue for importing or exporting.
 
TheDawn said:
it's EU who refused to trade with UK anymore and kicked UK out of many agreements just to punish UK. That's EU not UK.
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The Withdrawal agreement is a set of documents that all Brexiteers should read.

https://commission.europa.eu/strate...-united-kingdom/eu-uk-withdrawal-agreement_en

The EU did not refuse to trade with the UK, quite the opposite. But leaving the EU comes with a price, the UK left the EU, not the other way around. Therefore all conditions to previous agreements had to be reviewed.

Being part of the EU allow its members to trade favorably with each other. Obviously third party countries like the UK won't have the same preferences and conditions. EU simply applied to the UK regular conditions that existed already for countries outside the European Union. Obviously the UK saw a detriment in their conditions, like any other third-party country.
 
Drawdown Addict said:
The Withdrawal agreement is a set of documents that all Brexiteers should read.

https://commission.europa.eu/strate...-united-kingdom/eu-uk-withdrawal-agreement_en

The EU did not refuse to trade with the UK, quite the opposite. But leaving the EU comes with a price, the UK left the EU, not the other way around. Therefore all conditions to previous agreements had to be reviewed.

Being part of the EU allow its members to trade favorably with each other. Obviously third party countries like the UK won't have the same preferences and conditions. EU simply applied to the UK regular conditions that existed already for countries outside the European Union. Obviously the UK saw a detriment in their conditions, like any other third-party country.
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The end result is still the same: UK is barred from accessing many markets in the EU regardless whether it's consequences or whatever, it's punitive. Just because somebody left doesn't mean you have to cut them off from everything unless of course you hold a grudge against that person and you want to revenge and that's exactly what EU did. China is not even part of EU, EU still trades with China and allows China to export to many of the EU member countries.

UK wanted to negotiate with EU on many issues when drawing up these Brexit agreements and EU was very tough and refused. That was very clear. Don't turn this around and say somehow it's UK's fault. The only fault that UK committed was joining EU in the first place. LOL All of the negative predicament suffered by UK today as a direct result from Brexit, if any is 100% EU's doing. Of course another reason why EU is doing this is to show the rest of the EU member countries the "consequences" of leaving EU so they will not all leave because if they all do, then there would be no EU. That's also very obvious.
 
TheDawn said:
The end result is still the same: UK is barred from accessing many markets in the EU regardless whether it's consequences or whatever, it's punitive. Just because somebody left doesn't mean you have to cut them off from everything unless of course you hold a grudge against that person and you want to revenge and that's exactly what EU did. China is not even part of EU, EU still trades with China and allows China to export to many of the EU member countries.

UK wanted to negotiate with EU on many issues when drawing up these Brexit agreements and EU was very tough and refused. That was very clear. Don't turn this around and say somehow it's UK's fault. The only fault that UK committed was joining EU in the first place. LOL All of the negative predicament suffered by UK today as a direct result from Brexit, if any is 100% EU's doing. Of course another reason why EU is doing this is to show the rest of the EU member countries the "consequences" of leaving EU so they will not all leave because if they all do, then there would be no EU. That's also very obvious.
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The consequences of leaving the EU are clear, that country will belong to the third-party countries list and agreements/conditions will apply accordingly.

In Europe we don't blame the UK for leaving the EU, we don't care. Simple as that. Brexit and all that drama around its politics is a story in the UK, in my country we simply don`t care. As an example: they show us in the news that you guys are arguing for Northern Ireland once again, and we can't care less.

If there is any group that is inducing fear into you guys, because of Brexit, that is your own establishment, the one that didn't want to leave Europe in the first place. Your newspapers are the ones that talk about it, your politicians are constantly blaming Europe for their incompetence to solve issues. Europe is a perfect target for everything after Brexit came along. Look at what Nigel Farage did in the European parliament, he spent his days blaming Europe for everything, up to a point that when the UK left he had no one to blame and had to leave as well, his discourse was too obvious. His business was to set the British people against Europe.

The UK expected to have the same conditions as when they were inside the EU, and that is simply not possible. The EU did not want to punish any country, that is not what they do, quite the opposite, they are looking for more joiners every year. Just look at the number of countries that have joined the EU since its creation, it only grows.
 
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