The earliest signs are developing of hyperinflation, more correctly described as a collapse of the purchasing power of all the major government currencies.
Central bankers are almost certainly unaware of this danger, partly because their chosen statistics fail to capture it, but mostly because conventional monetary economic theory is lacking in this regard. Continue reading The real message from asset inflation
Messrs Carney and Osborne are turning out to be a dangerous double-act for UK residential property investors.
They have been using monetary and fiscal policies through a combination of directed bank lending, selectively increasing transaction taxes and by implementing other tax policies with a view to suppressing demand for residential property. Continue reading The pump and dump of UK residential property
The collective decision of the British electorate is to reject the recommendation of its government, excepting those of its few dissenting ministers, that Britain should remain in Europe.
It is a signal failure of government policy. Above all, it is a failure that undermines the state’s control over ordinary people. Time will tell whether it is just a temporary setback for the world’s economic planners, or the removal of a keystone supporting the whole structure of modern statism. Continue reading The consequences of leaving the party
Brexit is not the most important problem facing markets, it is mounting problems in the European banks.
But before looking at that systemic issue, I will summarise the Brexit position, from the trenches, in the last few days before the referendum. Continue reading Brexit is getting the blame
The British have recently seen two unpleasant examples of the cost of pension fund deficits.
A deficit at British Steel, estimated to be about £485m, was followed by a deficit at British Home Stores of £571m. In both cases, pension fund deficits have scuppered corporate rescue plans, because understandably no buyer will take on these liabilities. Continue reading The pensions mess: can gold help?