Politicians, central bankers and financial commentators all think that the inflation risk is over and there will be no recession.
Well, they are all wrong.
All over the world workers want big wage settlements because of inflation. In the UK, for example, the BMA wants a 35% pay rise for junior doctors and there is talk of strikes and industrial action by GPs and senior consultants who also want massive pay rises.
If workers (particularly those who are state employees) are given big pay rises then inflation will soar. If inflation goes up, up and up then central bankers and governments will have to increase interest rates to slow down their economies. And then there will be recessions everywhere.
But the big pay rises are no longer theoretical.
In Germany, public sector workers want double digit pay rises. The minimum wage there has gone up by 22%. In other European countries such as Spain and Holland, workers are demanding similarly high wage increases.
There was a 12% average rise in the statutory minimum wage in most countries in the EU in 2022.
The UK is in a particularly bad situation because unemployment figures are low, and so workers feel confident about demanding more money. What most don’t realise is that the unemployment figures are low because so many people are off sick – and most of those who are off sick are malingering. There are now said to be two million people in the UK off work with Long Covid. The problem with that is that the best research has shown that Long Covid doesn’t exist. The people who claim to be suffering from it just don’t want to go to work. They enjoyed the lockdowns and they enjoyed being paid to stay at home and do nothing.
If wages go up by more than 2%, which they look certain to do, then company profits will fall, dividends will fall and pensioners (past, present and future) will suffer. (Company bosses, consumed by greed, will, of course, continue to give themselves huge, undeserved pay rises.)
High pay rises will force inflation higher. Interest rates will have to go up. And the recession will become an eternal depression. It’s what the conspirators want, and around the world thousands of union leaders are not promoting the interests of their members but the interests of the conspirators.
If you want to know more about the future we all face then please read my book They want your money and your life which is available from the Amazon website.