Along with Football (Well done the Lioness’s)
The Chickens are coming home – to roost! It’s time to Pay the Piper!
Quantitative Easing – Printing Money – was always going to cause inflation. The First round of QE was mainly used to prop up banks and large corporates. They have kept the money on their balance sheets to address Stress Testing Ratios and for acquisition purposes. So the money never found its way into the economy. The second round and the Build Back Support CBILS etc loans did. Which combined with the governments total failure to manage our energy security and the wholesale sell off of our National Grid, Power Generation and distribution businesses to the French and Germans who are now holding us to ransom, along with our own governments tax structure, is causing soaring energy prices. (More indirect taxation)
Bank of England forecasters predicted the Consumer Prices Index inflation will hit 13.3 percent in October, the highest for more than 42 years, if regulator Ofgem hikes the price cap on energy bills to around £3,450. The bank said energy prices will push the economy into a five-quarter recession – with gross domestic product (GDP) shrinking each quarter in 2023.
It comes as the central bank raises interest rates from 1.25 percent to 1.75 percent today.
The Bank’s Monetary Policy Committee (MPC) said: “The United Kingdom is now projected to enter recession from the fourth quarter of this year.
“Real household post-tax income is projected to fall sharply in 2022 and 2023, while consumption growth turns negative.”
This will hit us in terms of mortgage payments, hopefully there will a reset in the housimg market so our children can afford to buy houses. If that trashes the banks Stress testing ratio’s, I say good. Their greed caused this problem in the first place. As I say The Chickens are coming home to roost! Welcome home.