From: "Virgils Ghost" 
Newsgroups: uk.finance
Subject: Re: NHS Pension
Date: Tue, 28 Nov 2006 00:28:47 GMT


"Andy Pandy"  wrote in message 
news:4t0uqhF10o1leU1@mid.individual.net...
>
> "Virgils Ghost"  wrote in message
> news:BUqah.229520$PE1.172973@fe04.news.easynews.com...
>>
>> "Andy Pandy"  wrote in message
>> news:4suku4F102iqnU1@mid.individual.net...
>> >
>> > "Virgils Ghost"  wrote in message
>> > news:NMoah.140121$eS1.94358@fe05.news.easynews.com...
>> >> >>These pensions *will* be paid, even if it results in hyperinflation.
>> >> >
>> >> > That doesn't work very well when they are index linked ... well Ok, 
>> >> > the
>> >> > second order effect helps, but the first order effect is just to
>> >> > hyperinflate the size of the hole.
>> >>
>> >> You simply 'adjust' (*cough*) the inflation figures well below the 
>> >> actual
>> >> levels of monetary creation and hope most people are too daft to 
>> >> notice,
>> >> seems to work so far :)
>> >
>> > Yes. And some people are daft enough to think house values have
>> > *increased* over the
>> > last 10 years!  How daft - when there are more houses now than there 
>> > were
>> > then!
>>
>> Quite, bar any significant improvements any given house still the same, 
>> if
>> not slightly more knackered than it was a decade ago when it comes to
>> roofing or brickwork. Present house prices say more about the real
>> purchasing power of our money rather than the merits of beige walls and 
>> wood
>> flooring.
>
> Yeah, because demand doesn't have any effect at all, does it.  All them 
> economics
> text books are bullshit.

Of course it does, we don't built enough homes, combine that with lax 
monetary policy and you have a nice inflationary mix.