When will this money crisis be over?

[Londonlade]

How long is a piece of string but realistically when are people thinking this financial crisis will be over?! Or is it the new normal?

What cost of living increase? What do you mean?

In China, for all their faults they shook down their super-rich by finding 'corruption', anti-state activities whatever. Some were shot, some went to prison and others gave up huge wealth and took the hint.Jack Ma of Ali-Baba for one. The CCP basically said we need 90% of your dosh to settle the books at the point of a gun. Not surprisingly they complied. Meanwhile, back here in the free west Bezos, Branston and Musk play with their rockets and lecture us on whatever whilst avoiding taxes and destroying our high streets and the like.

Oi Rishi missus - how about a couple of hundred mill to help settle the books, King Chaz that inheritance tax you didn't pay and the Coronation you want us to settle the bill for - READ THE BLOODY ROOM.

www.forbes.com/sites/jenniferwang/2021/01/07/disappearing-billionaires-jack-ma-and-other-chinese-moguls-who-have-mysteriously-dropped-off-the-radar/?sh=4b5aaab62187

I think it's a combination of things. Brexit, the war in Ukraine, bad decision making by the government, constant underfunding of services, lack of pay rises and the pandemic.

We got use to lending cheaply, paying less for food and utilities. People overstretched themselves thinking that this would continue.

It will go on for at least a couple of years probably longer.

Then after that we will have the human cost with illnesses, bad nutrition and poor mental health.

I'm constantly upset by the misery this is causing.

I think (correct me if I’m wrong!) this poster means the ‘official’ inflation figure of 10 or 11% is so much lower than the rises we’ve seen day to day in food, petrol or diesel and our domestic energy bills. Obviously petrol and electricity have gone up way more than 11%.

Unless they reverse brexit it is just going to get worse.

This is not correct, the recession is global, mainly but not only due to covid and Ukraine war.

I'm 67, so have seen a fair few recession/recovery cycles in my lifetime. It always seems to take longer to get out of a recession than to get into one, and the recovery process tends to be more gradual.

My instincts are that the worst will be over in around 3 years, and that it will be around another 2-5 years in total before we see the economy growing again. Big caveat though, recovery may be more difficult because of the Brexit effect.

Of course, more wars, climate catastrophe and other events beyond our control could bugger things up pretty comprehensively.

I have no idea when but I know it'll get worse.

Food shopping is extortionate.

I bought kerosene yesterday, it has doubled in price from last year.

We're both earning average wages and finding the pinch difficult.

I don't know how the elderly, disabled, unemployed will cope.

Our local soup kitchen brought 300 meals originally meant for the homeless community, low income families are coming nowadays alongside students.

The food donations have reduced hugely.

Jobs are cutting hours as people are not buying.

It'll end when we vote these fuckers out and have some time to repair some of the damage they've done.

Have you not noticed the standard of living has consistently gone down since the Tories got in? It'll carry on getting worse as long as people keep voting for them

There are more and more people in the world and they all want to eat. Climate change and war means we can't produce enough food for everyone. Tbf we never have but more countries have money to buy food now, so competition for what there is is greater and the price goes up.

The era of cheap food is over.

Austerity came before all of those things and Brexit IS making it worse, stop fooling yourself.

Yes, there are serious global issues - we can add climate change to that list - but our starting point and our ability to deal with these issues is seriously hampered by the self serving fuckers who are in power.

We need a government in place that gives a shit about living standards and opportunities for all of us, not only themselves and other ultra rich people.

Economists seem to be predicting things starting to improve at earliest second half next year, but I think more are saying second half 2024; they're also saying it won't be as 'deep' as 2008, but it will be longer. But there's so many variables, it's hard for anyone to say.

Inflation return to normal (2%) within the next year or two but bear in mind that that's just the rate of increase slowing again

🙄inflation never returns to normal. I never see prices fall. And how can they with a full scale war?

It will go on as long as the war in Ukraine continues.

It's got nothing to do with who is in power and everything to do with cause and effect. Decisions made long before our current government came in are what we are feeling the effects of today.

It's not the same as is having a £100 overspend this month and recovering it with a few cut backs the next month.

My view is that it’s a worldwide problem caused by a combination of global QE since 2008, low interest rates, lockdowns, war in Ukraine, climate crisis, energy crisis and the U.K. has brexit in the mix too.
stopping the worldwide economy for 2 years was always going to cause inflation when it started again. Sone economists were saying this at the time but got accused of being granny killers.

Pound to dollar is 1.14
It used to be up to 1.40 within the last 2 years.

The money in your pocket is worth less, it is buying less.

Even if everything goes back to " normal " people need to understand that the money in your pocket is worth less.

It doesnt matter if you are a millionaire if your currency exchange rate means you only get a dollar for it.

The UK needs to fix it's own economy, there have been a lot of bad governemnt decisions, it can only blame the war in Ukraine for so long.

With a lot of things, it is better to take action to get yourself out ahead, rather than waiting for a saviour to arrive/things to change.

eg There are people who have been begging for a house price crash since 2000 and now they are stuffed for life. There are people who have been moaning about benefits being low for years - and always will be.

Do what you need to do to make things ok for you. Don't wait for anyone else to. They likely won't.

This lot have been in power for 12 years.

Are you telling me that Austerity & huge cuts, Brexit, using every crisis such as the pandemic to service cronyism by giving contracts to incompetent Tory mates and Liz Truss's recent disaster have had zero impact?

Are you going to say it was all the fault of the last Labour government, next?

Get real.

If prices remain the same for a year, the inflation rate is 0%.

If prices fall overall, we have deflation.

I think it will be many years. I also agree with the pp who said that standard of living will rewind and never really recover to what we've had in recent years. We are hedonically adapted to our current standard of living and we will adapt in the same way to a reduced standard. I don't mean people starving and freezing - obviously that is not acceptable and people in these circumstances must be supported - I mean those of us who have lived in relative luxury for the last few decades will adapt to having less.

This is nonsense, recessions aren’t inevitable, they don’t fall due. They’re a reault of mismanagement. Australia hasn’t had a recession for 29 years.

Anyway, OP, Britain will continue to have money troubles until there’s all of
(a) peace in Europe,
(b) no pandemics for 5+ years,
(c) either a new source of cheap labour to replace Eastern Europeans, or scrapping of minimum wage and workers rights, and
(d) competent politicians.

Honestly I’m guessing 2050ish. (Assuming climate change doesn’t get super expensive and that WW3 doesn’t kick off.)

It’s also worth being aware that Britain doesn’t have to be a wealthy country. We cruised on ex-Empire wealth for a very long time but that’s over now. Then we relied on a strong economy and being part of EU but that’s over now too.

Plenty of countries are fine for a while then mismanage themselves m into a downturn spiral they can’t escape, look at Argentina, Iran, even Afghanistan.

@Changerofthename1

What skills do you need? Genuinely, how do we apply.

I have graduate children looking to continue their careers.

Yes prices are rising around the rest of the world - you frequently have posters on here telling you so from many parts of the world and bear in mind prices for food in other parts of the world are rising from a higher start point than in the UK.

The EU is not some utopia where none of this is impacting either - food prices are rising week on week by not insignificant amounts, there are gaps on the supermarket shelves too, VAT is charged on most food items in some countries, higher VAT on electricity bills than there ever was in the UK which has been reduced now to the levels the UK have. Electricity bills in the European country I know well have always been much higher than in the UK before all this. Plus wages in that country are lower than in the UK.

To answer questions on why prices are increasing and can there be government intervention on the prices increases….prices are increasing globally. The price of raw materials like cotton, metals etc have increased on top of that, the price of fuel to deliver the goods around the world has also increased. It is not the retailers who have increased the prices, they have to increase them otherwise they will be running at a lose. Our government has no say in the price of cotton in India or the price of metal from China.

I’ll also add that retailers ARE taking a hit on their margins. They are not passing on all the extra costs to the customers.