In July 2021, I put a note on both my websites saying this: ‘I’ve been warning for many months of a massive rise in inflation and it is coming. Printing money was bound to create massive national debts. An unofficial currency devaluation is inevitable. Bankruptcies are going to increase massively.’
It was many months before the Bank of England admitted that their 2% inflation target had been well and truly breached – and that inflation was going to get much, much worse. They pretended it was all out of their hands, and a complete surprise.
Inflation will be welcomed by politicians because it will further damage individuals and small businesses, boost the power of the State and lead us speedily into the Great Reset and the social credit system which the conspirators have been dreaming about for years.
There is a wide misunderstanding about inflation but it has always had a devastating impact on our lives.
In 1931 you could rent a house in the English countryside which had 5 reception rooms, 17 bedrooms, 6 bathrooms, a garage and 4 cottages, gardens, a lake stocked with trout and 1,650 acres. You could rent all that for £375 a year.
Inflation in the UK in the 1970s hit 27% and it was a steal if you could borrow money at 15%. How many people could pay mortgages at 20% today?
Central banks (such as the Bank of England) have kept interest rates at all-time lows. In many countries (such as Japan), interest rates have been held in negative territory for some years – with lenders paying banks money to allow them to store their savings with them.
But in the early spring of 2022 it eventually became obvious even to the central bankers that they had to confess that inflation was rising fast and out of control.
(We should remember, by the way, that the official inflation figures are something of a joke since everyone knows that the real inflation figure was already more than 20% in early 2022. The official inflation figures don’t cover essential bills. Many important bills are doubling or more but will not be covered in the official inflation figures.)
Either central bankers (such as the wildly overpaid employees at the Bank of England) failed to see that inflation was going to soar or failed to do something about it (in either case they were woefully, egregiously, incompetent) or they deliberately allowed inflation to soar out of control in order to help destroy their economies to help prepare the way for the Great Reset.
The last inflation spike occurred in 1992 when it hit 8%.
There is, however, one big difference this time.
In 1992, interest rates were at 12%. (Borrowing rates were much higher than that, of course.) With inflation at 8% this meant that for the banks the real cost of borrowing money was 4%. In the 1970s, inflation hit 20% in the UK and interest rates were 16% so, again, the real cost of borrowing money was 4%.
Today, the figures are very different.
Inflation is officially around 8% but interest rates are 1%. This means that those borrowing money are still getting a bargain. The money they borrow is being devalued at a much faster rate than their cost of borrowing it. The result is that debts are being erased very quickly. There is a great incentive for people and companies to borrow as much as they can. Since millions of individuals and many companies already have far too much debt, this is clearly a route to disaster. Companies which have no future will be kept alive because they can borrow as much as they like at a rate of -7% or more. The higher inflation goes, the bigger the problem will become unless interest rates are raised higher than inflation rates. This won’t happen, of course, for two reasons. First, governments want inflation to get rid of the debts they recklessly accumulated in the last few years. Second, millions of home owners would no longer be able to pay their mortgages and the housing market would collapse. The Bank of England is pretending that it is dealing with inflation by pushing up interest rates by a quarter of a point at a time. These tiny rises in the cost of borrowing money won’t make any difference at all.
Things are equally bizarre in the Eurozone where the deposit rate has been minus 0.5% since 2014 (in other words people lending money to the European Central Bank had to pay money to the bank for the privilege) and the inflation rate is now 7.4% (at least). This means that the real cost of borrowing money is around 8% (and savers are losing 8% on their savings every year.)
There is another reason for keeping interest rates absurdly low even though inflation is soaring ahead: the cautious and thrifty are seeing their hard earned savings destroyed by savings. If you have saved £1,000 towards your retirement, the combination of high inflation and low interest rates mean that the spending power of your £1,000 is diminishing (officially) by £80 or so a year. In reality, because inflation is much higher than the official figure, the spending power of your £1,000 is falling by £200 a year. In just a few years’ time that £1,000 of savings will be worthless.
All this fits neatly into the Great Reset and the new social credit paradigm.
Remember those infamous words: ‘You will own nothing and be happy’.
Most people have never seen inflation in action and they don’t regard it as a big threat. They’d probably put it somewhere between a slipping roof tile and a parking ticket. They probably haven’t heard of Germany in the 1920s when workmen received half their pay at midday and the rest before they went home because of inflation. Housewives put their currency notes into a wheelbarrow when they went to the shops. And most people’s life savings weren’t enough to buy a single postage stamp.
If you trust the central banks, and the Bank for International Settlements, then you needn’t worry too much about inflation.
But if you don’t believe that the central banks (and the BIS) have your best interests at heart then you should be worried.
No, forget that.
You should be terrified.
By destroying savings and impoverishing us all, inflation will help usher in the Great Reset and the world of social credit.
Taken from Social Credit: Nightmare on Your Street by Vernon Coleman, available as a paperback.