Understanding inflation, and how it can affect your futur

Gerry Legister By Gerry Legister, 9th May 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/1.tma_.8/
Posted in Wikinut>Writing>Columns & Opinions

the government to a larger degree, bears the ultimate responsibility for creating the panic station of uncertainties.
However, most people don't trust what politician says, and even though they are trying to put a delicate spin on the matter, they should also be bracing themselves for more disappointing news in the future.

significant impact upon the investment of millions of families,


The cost of living is soaring higher each day, figures newly out suggest cause for concern, adding more financial burden to the already hard pressed family budget, because the cost of living is alarmingly spiraling out of control, cries for help is coming from almost every corner of the world, the prospect ahead is showing a weakening grip on our national resources, annual consumer price inflation are hitting higher and higher percentages each month.

Abandoning the acquired wealthy status we had achieved with property development, and other lucrative investments during the past few years, we are now in real jeopardy of reverse negative equity. With pension performance not adding up to a whole heap, The disturbing downturn applies to the nation as well as to all individuals, at some stage most people will begin to feel the squeeze on their finances, and they will look to government for answers.

It means that inflation is running away above the governments suggested target, oil prices and food are the main violation which is causing the gloom to deepen, fuel products are far more expensive than a year ago, the economic climate is worrying with rising unemployment and spiraling personal debt, rising inflation is prompting fears that the economy is accelerating out of control.

As a result of these jittery anomalies, billions have been wiped of the stock market, plunging companies into uncharted territory and greater financial dilemma, mortgages and housing cost is also reacting to the atmosphere and the financial institutions are showing some unpleasant instability.

Inflation is the cost of consumer products, where prices are always on the increase over a period of time, so when inflation gets too high the cost of living is not sustainable, and some compromises have to be made, usually families on lower income feels the effect first, when inflation gets out of control, it reduces the value of our money, this influence affect the stock market.

Whenever the FTSE underperforms, the dramatic falls in share prices always have significant impact upon the investment of millions of families, while these families may have been inform by media about what is taking place, the government to a larger degree, bears the ultimate responsibility for creating the panic station of uncertainties.
However, most people don't trust what politician says, and even though they are trying to put a delicate spin on the matter, they should also be bracing themselves for more disappointing news in the future, a cut in interest rates is desperately needed, but the banks dare not do a thing like that, it will be hard to give us the interest rate cut we need to boost the economy, they will have the urge to do it, but not the will power to carry it out, when headline news on our financial data is not only alarming, but surprisingly high, much like the sinking of a great ship in icy waters, inflations deepens, and we are its victims.

So while the credit crunch is taking such a bruising toil upon all and sundries, it's fair to say, these actions are heightening the coming of a worldwide economic crisis. Where the latest dives have been blamed on the gloomy American economy, whenever Wall Street index tumbles, fears are made worsen, the fallout from us mortgages sends global shivers for more mounting assessment, and comparisons quickly leap to mind in quest for the right answers.

A dip in oil prices will readdress the equilibrium momentarily, and give investors a little bit more confidence, but beware, the trend is still upwards, and at the moment every piece of news is valuable, relief will only be short lived, and the flexing of greater mussels will soon be needed.

Tags

Inflation, Inflation And Higher Rates, Investment, Investment Opportunities, Investment Strategy

Meet the author

author avatar Gerry Legister
I am from the UK, and I love creative writing. And I write on many different subjects, including War peace, love, happiness.

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