We've just been through a historic time, printing money like CRAZY. Lavishing businesses with covid grants, low interest or interest free loans, huge public sector expenditure such as track and trace, free home test kits, free vaccinations, record low interest rates.
The money to pay for all of that comes from banks extending digital credit via loans and the BOE printing it through OMO / bonds. End of.
Don’t quote me on this but I heard that America printed something like 40% of the money it's ever printed in it's entire history in the last 2 years. It's crazy.
And when you increase the money supply, prices rise and you get inflation. That's fiat currency for you.
Now we're seeing the effects of this false economy we've been living in. Inflation is here. Every action has a reaction and now the chickens have come home to roost.
Interest rates have to go up to battle inflation. It will make cost of living worse, there's not much we can do given the huge printing-fest we've had.
I find it funny that those who called for all this free government support, leading to massive printing of money, are the same people who are now angry that rates are going up. You can't have your cake and eat it.
My answers
Couldn't agree more!
People always want it both ways.
We've just been through a historic time, printing money like CRAZY. Lavishing businesses with covid grants, low interest or interest free loans, huge public sector expenditure such as track and trace, free home test kits, free vaccinations, record low interest rates.
The money to pay for all of that comes from banks extending digital credit via loans and the BOE printing it through OMO / bonds. End of.
Don’t quote me on this but I heard that America printed something like 40% of the money it's ever printed in it's entire history in the last 2 years. It's crazy.
And when you increase the money supply, prices rise and you get inflation. That's fiat currency for you.
Now we're seeing the effects of this false economy we've been living in. Inflation is here. Every action has a reaction and now the chickens have come home to roost.
Interest rates have to go up to battle inflation. It will make cost of living worse, there's not much we can do given the huge printing-fest we've had.
I find it funny that those who called for all this free government support, leading to massive printing of money, are the same people who are now angry that rates are going up. You can't have your cake and eat it.
But what do I know, that's my rant anyway...
Great article thanks Steven.
Luke