The talk of economic collapse is getting louder and louder by the day. I take a look at what’s happening around the world. It’s looking pretty grim.
I’ll start with my home country.
- A few days ago, Andrew Bailey, the Governor of the Bank of England, warned that the UK was facing its biggest economic shock in over 50 years. He said that both individuals and businesses will face a severe cost of living squeeze.
- The Office for Budget Responsibility (OBR) has said that the UK is facing its biggest drop in living standards since records began in 1956.
- Today (1st April) marked the biggest rise in energy bills in living memory. The energy price cap rose from £1,277 to £1,971. That’s a 41% increase of £693 for the average household. The cap is expected to rise to £2,700 in October.
- Other household bills have also risen today or are planned shortly.
- Inflation is expected to peak at over 10%.
- Eurozone (countries that use the euro) inflation is currently at a record high of 7.5%, with no sign of slowing down.
- Lithuania’s inflation hit 15.6%.
- Netherlands inflation hits 11.9%.
- Energy costs are up over 44% in a month.
- Inflation is currently over 50%.
- Inflation reaches 18.7%.
- Food inflation reaches 30.1%.
- Last night (31st March) hundreds of rioters tried to storm President Rajapaksa’s home.
- In February, government debt reached $30 trillion.
- The official inflation rate has hit 6.4%. Many think that the real inflation rate is more likely to be around 10–15%.
- The inflation rate hits 215%.
- It’s suffering from a devastating financial crisis.
I could go on and on. Wherever you look, economies are in a state of collapse. Debts are mounting. Money is being printed like there’s no tomorrow. Interest rates are still being kept artificially low, which can only lead to more inflation.
Governments and central bankers are lying to us. Despite all the money-printing, they flat-out denied that it would bring inflation. Then when inflation came they claimed it was transitory. Now they’re saying it may persist longer than expected.
If they’re not lying, then they are grossly negligent and not doing their jobs properly. It is now very obvious to most people that inflation is here to stay for the long term.
Add into the mix Russia’s devastating war in Ukraine and it’s clear that the crises are getting worse, not better.
Russia has said it may cut off the EU’s gas supply if it doesn’t for it in rubles. The EU has refused. They get a large proportion of their gas from Russia, so if it gets cut off, the EU will slide into a severe recession. It might do that anyway.
Meanwhile, asset prices are rocketing up. In the UK, property prices are up almost 15% in the last year. Property there is already unaffordable for many, so this will only make it worse. Workers are getting rises that just don’t keep up with inflation.
Is there any good news on the horizon? US jobs data is promising, but that’s about it.
This is no joke. Many people are going to suffer badly over the coming months and years. I hope it doesn’t happen, but some are already talking of another Great Depression.
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