Well, I got a bit animated in the video below… but for good reason! The UK’s central bankers are waxing lyrical about “the remit is clear the inflation target applies at all times, reflecting the primacy of price stability in the UK monetary policy framework,” while predicting inflation to hit 7.25%. Meanwhile, they’re raising interest rates by increments that’d make Gideon Gono – that’s Zimbabwe’s former central banker – blush.
Over in the United States, they expect inflation to moderate to 2% with interest rates at 1.65%. Do you think a 1.65% interest rate will keep inflation at 2%, let alone bring inflation down from 7%? The last time we had 7% inflation, it took interest rates at 21% to bring it back down…
Even the European Central Bank has woken up to the inflationary elephant in the room, after being in denial for almost a year.
The only thing that’ll be transitory in this inflation cycle is promising political careers. Because people are going to get upset. And they can’t vote out their central banker.
Find out what happens next in this video with John Butler – the man who saw inflation coming a year ago and warned you about it in Fortune & Freedom.
And if you’d like to hear from Nigel and other guests more often and more conveniently, why not sign up to the new Fortune & Freedom podcast on Apple Podcasts, Spotify, Amazon Music or Google Podcasts?
Nick Hubble
Editor, Fortune & Freedom
