Middle England - Battening Down The Hatches

[delboy]

I reckon I'm done with spending for a while now. Ken Clarke says we (middle England - which is me, geographically

• )  still have no idea what's about to hit us... and as I've just enjoyed about the one zillionth month where expenditure has outstripped income (pretty much without actually doing anything other than paying bills) I think it's time to close up shop. My little collection of CDs, DVDs, books, guitar strings, dog food, and shoes will have to suffice for a while. Thank God for free podcasts and You Tube!
  
  Derek
  
  
• Not financially. The middle England family that the Mail on Sunday used to illustrate how tough times are have had to put their £1.9m mansion up for sale and may even have to take their kids out of private school...

[Ed]

• Not financially. The middle England family that the Mail on Sunday used to illustrate how tough times are have had to put their £1.9m mansion up for sale and may even have to take their kids out of private school...
  

That's heart-wrenching Where will it end?

I feel for you, Del. I don't know how people are getting by, I really don't. With most people not having had a pay rise in at least three years, and inflation running at two or three percent per annum, we've all taken at least a six percent drop in pay, in real terms. Meanwhile the cost of food and fuel has spiraled. How can it be sustainable? All we need now is a hike in the mortgage rate, then the shit will well and truly hit the fan.

Personally, I count my blessings, because I've managed to stay not only employed, but busy throughout the past three years, and earning decent money, though my figures are down year on year. The future is still uncertain, though. I have work for the next two months or so, but I'm not sure what's on after that. I could be flat out on my arse by the end of the year.

What's old Ken been saying, then? I haven't heard anything about it.

[Ed]

As if to underline how bad things are, my mother rang tonight to say her neigbours are getting evicted/house repossessed by the bank. They put up the interest rate on the mortgage, which was the final straw for the family, who were already struggling to make ends meet. I think this year could be a very tough one all round. The Bank of England are talking about raising interest rates to combat inflation. If they do, I predict a housing crash, and we'll see a wave of repossessions like we had in the early nineties.

Inflation is at four percent and rising, predicted to reach five percent by year's end. Most of that's as a direct result of the govt raising the VAT rate combined with rising fuel and food prices. The fuel prices make the food dearer, both in the production and distribution phases. It's a real mess, isn't it

[Grillmeat]

Wow don't envy you at all. We've had the same thing over here for the past few years. Lots of people lost their homes in the last five years do to the economy and bank repos. Hope you all can hang in there and weather the storm.

[delboy]

It's been the same here for a few years, too. The recession, all the job losses in the private sector, various industries - construction, for example - almost shutting down completely. I don't think there's much indication that we're moving out of the recession as quickly as some countries - probably because the Government spending cuts programmes means the focus is now on the public sector in terms of job cuts and services scaled back.

With the aforementioned inflation and the hike in various taxes we're now now actually feeling first hand the effects that we were all warned about before the election. But now the politicians are saying we ain't seen nothing yet and things are going to be much worse than anyone really believes. Which is scary and does nothing for consumer confidence. I might be wrong but I'm sure a few weeks back the Chancellor was encouraging people to spend a bit more, to help the country start to financially move again. Trouble is, a lot of people have nothing left to spend - they're already spending it all, just not on nice new manufactured goods. And those that do have some cash left over at the end of the month are probably more inclined to hang on to it just in case - that confidence thing again.

I'm luckier than many. I have a reasonably decent job and a good quality of living. But just covering the bills is still costing more than I earn, which isn't a sustainable model. Hence the hunkering down and waiting for the storm to pass.

All of that said, sometimes I feel the devil in me saying, "Del why are you struggling and worrying so much? There are no pockets in a shroud. Just go for it. Get yourself a car again. Go to those gigs and shows you want to go to. Have a weekend away. The bastards'll only take it off you if you do save anything for a rainy day."

It's tempting!

Derek