To ask where this is heading? 📉

[Brrrrrrrrrrrr]

Todays worrying news about inflation and interest rates seems to be becoming a regular occurrence, to the point where I’m almost desensitised to it despite its profound impacts on those around me. It’s grim reading and not hopeful at all but I’m wondering just how much worse can it get? The plan seems to be to not do anything, which makes me wonder is the UK completely screwed?

I’m sick and tired of this grey cloud looming over a big chunk of society, disposable income is dwindling rapidly for millions, surely in 2023 life should be getting easier not harder?

Is there a solution to this?

The problem is supply side inflation - jobs and food/energy etc, and not a hot economy from people spending lots. Unfortunately the twats that brought us Brexit are still in charge so they won't do anything about easing supply side (windfall tax/free movement of goods) because then they will have to admit that Brexit as been monumentally bad for the UK. The decade of austerity has compounded the current shitshow, and total lack of infrastructure spending means that everything is creaking under the strain. The US ambassador predicted this 5 years ago (as did Mark Carney within the contraints he had as governor of BofE) so its not exactly rocket science and shouldn't have come as a suprise to anyone in charge. I think the next few months, couple of years are going to be very grim indeed. It scares the shit out of me tbh.

But the short answer is yes, the UK is absolutely screwed, for decades to come.

It’s awful, we’ve put our house buying plans on ice but I really feel for anyone who is due to remortgage. Scary stuff

I hope there’s a miracle soon, I really do.

I think once we can't afford to buy anything it will stop

Nothing to add the the very first post. We still have the lying fuckwits in charge who thrust Brexit on us. And an almost impossible task for a replacement government.

The economy has always operated in cycles. This will pass. I am old enough to remember massive inflation and the 3 day week, strikes and fuel and
owed shortages of the 1970s, the ‘loadsamoney’ 1980s, the 15% interest rates of the 1990s - and so on.

*power shortages

I don't think there's anything they can do. And as someone who bought a modest house last year, on a short fix (not through choice), I feel royally screwed over. But I feel my generation has been screwed from the start, not sure why I thought this would be different.

Adam Posen said heading for a recession on Twitter earlier. He’s seems to have been right before on uk economics.

It does feel a bit gloomy.

We all knew it at some level, but it's still depressing to read.

Agreed

Don't think there's a solution except for more of us getting poorer. This is what no investment in the country or people gets you.

The economy has always operated in cycles.

We never recovered from 08 though...

But at least we have the blue passports hey.

I think a recession is inevitable unfortunately. It sucks for those of us who have either over borrowed in naive optimism or who wanted to borrow more in the short term but now have to hold off.

It's going to be very tough for LOTS of people. And I don't think renters will fair much better, they'll have to pay more too to cover landlords mortgage increases.

We need a change in government pronto. I guess one positive is there's low unemployment and more jobs than people so hopefully most people's jobs will be safe. Scary times though.

Agree with @SchoolShenanigans a recession will happen. The whole thing makes me feel really anxious. We’re not on the ladder yet and for that I’m kind of glad, but it just looks so bleak, doesn’t it? Renting or owning doesn’t matter, whole system needs an overhaul and everyone deserves secure permanent housing that is affordable. Why this time last year could I buy a 3 bed home on our salaries but this year we can’t even afford a one bed flat (well, we can, but we’d be needing to move soon and therefore at risk of negative equity). It’s wrong and so many will be in this position