All the helicopter money dropped on the nation has quickly disappeared. Personal saving rates (in red) are quickly falling back to recession levels.
At the same time, consumer credit (in blue) is spiking upwards, already well past previous recession levels.
On Thursday, the Bank of England (BoE) raised the base interest rate up to 1%, the highest it has been in 13 years. UK inflation hit 7% in March and the BoE forecasted that it will raise to 10% by the end of the year. We all know how accurate their forecasts are, along with most forecasting using models.
Energy price caps were raised in April (planned long before the Ukrainian invasion) increasing prices for consumers by 40-50%. Another price cap rise is happening in October.
The Federal Reserve raised interest rates by 0.5% last week, the highest since 2000. More raises are expected to follow, with forecasts of 2.9% by early 2023. Again, more forecasts which have continuously been proven wrong.
If you haven’t had a pay rise of at least 8% this year, you’ve had a pay cut. If you have money in the bank, it is being stolen through inflation.
If the forecasts are accurate, it will be a terrible few years. However, we can all see where things are really heading.
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May 7, 2022Liked by NE - nakedemperor.substack.com
Obviously it was impossible to forecast that this would happen. If you spend money you haven’t got there are only a few ways it can go. You tax people more (so that they are poorer), you print money causing inflation (so that people are poorer) or you borrow money (so your children are poorer). Ideally do all that. And pay people not to work. Force small businesses out of business. For best results disrupt the supply chain so that prices rice (cost push + demand pull) and people are poorer. In a perfect world you’d engineer an energy crisis by intentionally restricting domestic production and propagating a conflict and then justify sanctions a food and fertiliser crisis would be the cherry on top. How about encouraging and paying for illegal migrants to live off taxpayers’ money, that’s always a winner.
Every cloud though eh, Herr Schwab is coming to save us with his NWO.
May 7, 2022·edited May 7, 2022Liked by NE - nakedemperor.substack.com
Who would have thought that splurging trillions on lockdowns, supply chain disruptions, tests, vaccines etc. would have actual results on the economy and people's real finances?!
It's almost like reality exists and actions have consequences.
Well at least the war in Ukraine and cutting Russia off from the global economy won't have more consequences. Right?
May 7, 2022Liked by NE - nakedemperor.substack.com
Looks like a period of stagflation, rising inflation plus recession. These measly rate increases are entirely insufficient to deal with inflation. Even then they cannot raise rates much higher in America, as higher rates would bankrupt the country, paying out interest payments on all that debt. Yet they are going to have to keep printing to keep financial markets afloat. It is a nightmare predicament.
The incompetency is astounding. It is pretty clear, some people are going to have to feel the pain, and our elite will do whatever it takes to make certain it is not the elite who suffer. The rest of humanity can eat vaccine mandates or whatever.
May 7, 2022Liked by NE - nakedemperor.substack.com
Two observations;
First this paragraph, "If you haven’t had a pay rise of at least 8% this year, you’ve had a pay cut. If you have money in the bank, it is being stolen through inflation." is what so many fail to understand. It's almost as if they had a plan when they removed basic economics from the education curriculums.
And second, since I gravitate towards analogies, we have been on a forced sugar high diet of givernment helicopter money for so long, many have become financial diabetics. I truly fear the economic insulin shot will be worse than any vaccine.
Tough times ahead, will cull some of the herd, and maybe thats a good thing in the long run. But hard to watch.
May 7, 2022Liked by NE - nakedemperor.substack.com
Our populace has been lulled into complacency and as long as they have their iPhones and WiFi and social media they are happy. We have become spoiled by affluence and now many people will be shaken and awakened to find out they have become prisoners in a system they themselves allowed to be put in place.
May 7, 2022·edited May 7, 2022Liked by NE - nakedemperor.substack.com
Quantative Easing really is the ultimate stealth tax, and it hits the poorest hardest as they are unable to shift around what little wealth they have into assets, other currencies etc to shield it from the effects of inflation.
I don't understand why zero % rates and QE have preserved for so long. Wasn't that a 2008 crisis measure? Shouldn't we have returned to normal by now? (I know why, it's called Modern Monetary Theory and it's as theoretical as Critical Race Theory, which is to say not at all, but did everyone buy into the idea?)
May 9, 2022·edited May 9, 2022Liked by NE - nakedemperor.substack.com
Great post!
I personally love chaos and rapid historical shifts.
Inflation and shortage of natural resources was the most easily predictable consequence of money printing and financial starvation of resource exploration.
Dieoff from a laboratory made HIV-like virus with a coronavirus backbone, and a radically novel "vaccine" is also, unfortunately, easy to predict.
Have fun people and remember, what will happen is not the fault of Naked Emperor, me, or our subscribers. Let's hope we avoid as many troubles as we can by being wise and healthy, and help our loved ones, and warn those who we care about.
Obviously it was impossible to forecast that this would happen. If you spend money you haven’t got there are only a few ways it can go. You tax people more (so that they are poorer), you print money causing inflation (so that people are poorer) or you borrow money (so your children are poorer). Ideally do all that. And pay people not to work. Force small businesses out of business. For best results disrupt the supply chain so that prices rice (cost push + demand pull) and people are poorer. In a perfect world you’d engineer an energy crisis by intentionally restricting domestic production and propagating a conflict and then justify sanctions a food and fertiliser crisis would be the cherry on top. How about encouraging and paying for illegal migrants to live off taxpayers’ money, that’s always a winner.
Every cloud though eh, Herr Schwab is coming to save us with his NWO.
Who would have thought that splurging trillions on lockdowns, supply chain disruptions, tests, vaccines etc. would have actual results on the economy and people's real finances?!
It's almost like reality exists and actions have consequences.
Well at least the war in Ukraine and cutting Russia off from the global economy won't have more consequences. Right?
Years of financial repression as they inflate the debts away. Livings standards in the West will halve.
The entire gestalt is already worryingly like the times of the Weimar Republic, great depression, world war and rise of the Nazis in Europe.
Looks like a period of stagflation, rising inflation plus recession. These measly rate increases are entirely insufficient to deal with inflation. Even then they cannot raise rates much higher in America, as higher rates would bankrupt the country, paying out interest payments on all that debt. Yet they are going to have to keep printing to keep financial markets afloat. It is a nightmare predicament.
The incompetency is astounding. It is pretty clear, some people are going to have to feel the pain, and our elite will do whatever it takes to make certain it is not the elite who suffer. The rest of humanity can eat vaccine mandates or whatever.
Actually dropping cash from helicopters would probably be less detrimental.
Unless it's coins, of course.
Two observations;
First this paragraph, "If you haven’t had a pay rise of at least 8% this year, you’ve had a pay cut. If you have money in the bank, it is being stolen through inflation." is what so many fail to understand. It's almost as if they had a plan when they removed basic economics from the education curriculums.
And second, since I gravitate towards analogies, we have been on a forced sugar high diet of givernment helicopter money for so long, many have become financial diabetics. I truly fear the economic insulin shot will be worse than any vaccine.
Tough times ahead, will cull some of the herd, and maybe thats a good thing in the long run. But hard to watch.
Our populace has been lulled into complacency and as long as they have their iPhones and WiFi and social media they are happy. We have become spoiled by affluence and now many people will be shaken and awakened to find out they have become prisoners in a system they themselves allowed to be put in place.
"However, we can all see where things are really heading."
Where? "A terrible few years" sounds about right to me. I would say "a terrible few hundred years" is also likely.
If one has money in the bank, where is the best location to move the money to?
Quantative Easing really is the ultimate stealth tax, and it hits the poorest hardest as they are unable to shift around what little wealth they have into assets, other currencies etc to shield it from the effects of inflation.
I don't understand why zero % rates and QE have preserved for so long. Wasn't that a 2008 crisis measure? Shouldn't we have returned to normal by now? (I know why, it's called Modern Monetary Theory and it's as theoretical as Critical Race Theory, which is to say not at all, but did everyone buy into the idea?)
Where are things really heading? Help me out.
Great post!
I personally love chaos and rapid historical shifts.
Inflation and shortage of natural resources was the most easily predictable consequence of money printing and financial starvation of resource exploration.
Dieoff from a laboratory made HIV-like virus with a coronavirus backbone, and a radically novel "vaccine" is also, unfortunately, easy to predict.
Have fun people and remember, what will happen is not the fault of Naked Emperor, me, or our subscribers. Let's hope we avoid as many troubles as we can by being wise and healthy, and help our loved ones, and warn those who we care about.
Yeah.
That just about covers it.