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Tuesday, June 19, 2012

Over-50s in UK say "our living standards are crashing"

According to a Telegraph report, a survey of people over 50 in the UK reveals that they think their living standards are crashing.

Regular readers know full well that this is a direct result of the UK policymakers and financial regulators continue to pursue the Japanese model for handling a bank solvency led financial crisis.  

The policies adopted under the Japanese model favor preserving the deception that banks have positive book capital levels over the real economy and society.  These policies include austerity (to repay the debt taken on bailing out the banks), regulatory forbearance (banks practice 'extend and pretend' on zombie borrowers rather than recognize their losses) and zero interest rates (maximizes the net interest margin for banks at the expense of depositors/investors).
When over-50s were asked to rate their current standard of living for Saga's quarterly Quality of Life index, they gave a score of minus 25, the worst since the survey began....
The overall Quality of Life index, which takes into account standard of living, health and happiness, fell to minus 16 from minus 8.6 the previous quarter – another record low. 
Saga blamed the negative findings on "stubbornly high" inflation combined with weak earnings growth, implying an "ongoing erosion" in the purchasing power of the over-50s. 
Although the official measure of inflation, the consumer price index, fell to 2.8pc last month, 27pc of Saga's respondents said they experienced inflation on more than 8pc, while a further 50pc said it was between 4pc and 8pc. Only 20pc said they experienced inflation of less than 4pc. 
Ros Altmann, the director general of Saga, said: "Many of our panel of 10,000 respondents continue to find life difficult. Continued inflation is eating away at their spending power, even on items considered essential." 
"Money-related worries for the over-50s remain a greater concern than crime and health, stifling confidence and therefore the prospect of growth driven by this group."

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