Boom, Boom, BANG!
If you’re in the housing business, there’s good news all round.
First inflation is heading for 4% which means that all our house prices will go up. Those of you lucky enough to have your own chez moi you may now pop the champagne corks. Tough luck on the moaning millennials, go back to your flat you share with 15 other millennials and be grateful you sleep head-to-toe, it saves on the gas that got so expensive lately.
That makes us all feel good. I can hear the chat down the pub: “Don’t know why I work mate; my house earns more than me every week.”
But let’s look back a few years… Remember good old Gordon Brown, the Iron Chancellor (not the Iron Lady – a different kettle of fish), who said he’d keep inflation at 2 per cent. And he’d hand over control to the Bank of England to make sure he was a good boy?
And they would then do a regular report to make sure that they were doing the job. Bye, bye to all that!
The problem with inflation is that when you let that little monster out of its box, it’s a devil to get it back it in…
Four per cent today, six per cent tomorrow, 10 per cent and then 27 per cent (I remember that) and the economy is shot.
Call in the IMF, fire brigade, ghost busters, just call someone!
The Labour Party called it austerity and, for sure there was pain. But there is only so much money to go round. Rishi is saying the economy is booming and that will solve all the problems. I’ve been around to hear it all before.
Taxes will have to go up and we’ll all bear the pain. The middle classes (like me) will moan and groan, but we cannot have bad housing, bad education and a bad health service. We all to have to pay.
House prices will rise in price but not in value, which make us feel better for a while.
Meantime, there’s pain on the way, no matter what Boris’ “all jolly good conference” speech said.
Batten down the hatches.
Have a good weekend.