Let us look at the current economic figures as reported tonight by the BBC (interest rates given are per annum):
On the "costs" side: the Consumer Price Index is currently running at 3.1%. The Retail Price Index, which reflects the real increase in costs of living, is currently running at 4.8%.
On the "income" side: the wage rise is currently running at 2%. The Bank of England interest rate is currently 0.5% and it is difficult get anything above that on the savings.
Our savings are eroded by a staggering 4.3% a year. Shockingly it is more than Halifax standard variable rate which is at 3.5% a year. However those with mortgages are not that lucky since, typically, they have to earn their living. Their wage is shrinking by 2.8% a year. This is offset to some degree by depreciation of the loan value if an interest of the mortgage is below the rate of inflation (using Halifax rate it is 1.3%). These figures are striking: we are all ripped off, savers or mortgage payers alike. The economy remains in a morbid state.
What does the above tell us? We, the taxpayers, are getting poorer. With trillions of pounds circulating in the economy the difference between "costs" and "income" is substantial. And growing (in an exponential way, i.e. very fast indeed). So on the whole we are getting much poorer. It is clear that this is a process, executed in a rather clandestine way, of inflating out the current liquidity crisis since the effective interest rate (interest rate minus inflation) is negative. This is the way we are paying for the largest heist in history. It begs a question why neither politicians nor mainstream media discuss this aspect of the current economic situation.
On the "costs" side: the Consumer Price Index is currently running at 3.1%. The Retail Price Index, which reflects the real increase in costs of living, is currently running at 4.8%.
On the "income" side: the wage rise is currently running at 2%. The Bank of England interest rate is currently 0.5% and it is difficult get anything above that on the savings.
Our savings are eroded by a staggering 4.3% a year. Shockingly it is more than Halifax standard variable rate which is at 3.5% a year. However those with mortgages are not that lucky since, typically, they have to earn their living. Their wage is shrinking by 2.8% a year. This is offset to some degree by depreciation of the loan value if an interest of the mortgage is below the rate of inflation (using Halifax rate it is 1.3%). These figures are striking: we are all ripped off, savers or mortgage payers alike. The economy remains in a morbid state.
What does the above tell us? We, the taxpayers, are getting poorer. With trillions of pounds circulating in the economy the difference between "costs" and "income" is substantial. And growing (in an exponential way, i.e. very fast indeed). So on the whole we are getting much poorer. It is clear that this is a process, executed in a rather clandestine way, of inflating out the current liquidity crisis since the effective interest rate (interest rate minus inflation) is negative. This is the way we are paying for the largest heist in history. It begs a question why neither politicians nor mainstream media discuss this aspect of the current economic situation.
The politicians and mainstream media are in it together. The public need an awakening but currently distracted by much bread and circus.
ReplyDeleteThe critical faculties of the British have been severely blunted over the years. They give the impression that they are heavily sedated on debt, booze and football.
ReplyDeleteBut - will it plug the hole or is the pyramid still getting bigger with this tactic. Implemented to the full - will it fix it dear elizha will it fix it??
ReplyDeleteANSWER: governance and its handmaiden 'media' are 'living within the lie'. (Vaclav Havel)
ReplyDelete