I’ve written before (accurately) that the UK’s inflation claims are nonsense and that its clear inflation is going to keep coming down the pipe, and I don’t see how this will not carry on into the foreseeable future, which is disastrous for the UK finances. Nothing is going the governments way, and whilst I am not happy about the destitutions they will drag everyone into, I am at the same time relieved that their shitty liberal world is crashing down around them.
Inflation is caused by immigration, and it is caused by government spending, and it is caused by tax increases when that tax is included within RPI (council tax and stamp duties.) It is also going to come from abroad as we see with meat and tea, and as we will see from the Trump Tariffs. Inflation in the US will make it to the UK due to dollar denominated imports and and the higher interest rates that the FED will need to maintain, thus driving up the strength of the Dollar to the UK pound making imports even more expensive.
At the same time, it is obvious the economy is falling apart because the UK has a joke economy which has been created by London centric money laundering policy. The whole country was subordinated to London so any kind of industry or anything not friendly to money laundering just got canned. Factories? nope. Industry? nope. steel working? nope. Coal mining? nope. Call centers and property pumping. Money laundering and general scamming. Yep. And people wonder why the rest of the UK is so poor compared to London. Its not rocket science. If you put all the investment there and you focus your economy around money laundering, of course everywhere else is going to suffer.
Fiscal stimulus in such a situation is actually a stupid idea. Any fiscal stimulus to push growth is stupid unless that fiscal stimulus is being utilized to build real things because it is the second order effects of this stimulus that gets you the growth. I think this would be the same with UBI. You can figure this out by sitting down and thinking it through.
If you implement deficit spending in a war scenario then this means creating weapons, which means factories, and it means developing new technologies to win that war. So take World War Two. Fiscal stimulus left industrial production which included more people who now had understanding of how to organize factories, who would themselves then be able to use their new contacts to make new factories. It also left large amounts of airplanes that could be utilized in consumer flights. It also left us with computers which improved productivity by 3% per year with their widespread usage. I am sure you can think up even more examples.
Now think about fiscal deficits in the modern setting.
Now we run deficits so we can…fly Afghans into the UK to sit around and cause trouble, and we run deficits to house criminals in hotels. What second order effects are we getting from this beyond increased spending on crime mitigation and bigger government to abuse native people to manage the trouble they cause? Or spending on diversity coordinators and importing solar panels from China. How is that going to improve productivity? Or spending on benefits for Pakistanis in Oldham to turn it into a Pakistani colony whilst they run the Afghan to UK drug pipeline and pimp out British girls from care homes? Where can you see any kind of beneficial second order effects here? You would have to be braindead or an economist to look at this and think its fine.
They are out of ideas and so they will keep flogging the horse even though it’s not only dead, its practically fossilized remains at this point.
This government spending keeping GDP from falling into the negative rate is entirely unsustainable and will get slashed hard by this time next year because they wont be able to fund it. Just look at that market sector output. Without that spending, that’s going into negate growth, and throw in the onerous taxes, and things look like they will swing hard into recession. Its like a perfect storm of pure unbridle idiocy.
Once your debt to GDP goes over 90% it’s game over - you cant recover Two economists Roghoff and some other chap. Forget his name. A great economist is LACY HUNT. TRACK HIM DOWN.
With low debt in the early days you borrow £1 and you get say….£1.40 of GDP or economic activity. Wow =. Borrow more.
After 90% you borrow £1.00 and you get 0.80 of gdp.
Thats because you are spunking cash on debt servicing which is dead money.
If you look at SHADOW STATS. THE REAL LEVEL OF CPI IS CLOSER TO 8% OR MORE
THE WAY THEY CALCULATE GDP IS GROWTH MINUS INFLATION
IF THEY WERE CLOSE TO TRUTHFUL, THE UK AND THE USA HAS BEEN IN A DEPRESSION SINCE AT LEAST 2008. All of these fantasies are priced into equities and when there is no more fairy dust …it will be MONUMENTAL.
Thats when we get rid of the coons and paki’s. We collapse out way out.