Inflation Spikes in Britain

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Butter, coffee, fish, travel, oil, everything is more expensive in Britain this Christmas as that endless money printing starts hitting.

Inflation rose by 3.1% we are told, but basic goods, such as butter, are up 23%, fish at 15% and coffee at 11%, making that weekly shopping basket that much more expensive.

UK inflation in 2017

The culprit is Brexit, mainstream media says. The pound has fallen since last year, making imports more expensive, but with the same breadth we are told “French shops [are] struggling to stock butter at all.”

There’s a surge in demand, apparently, for butter of all things. With someone suddenly wanting all this fish as well. And although it is the Christmas season, therefore some aspects, like books (presumably as gifts) may be seasonal, we do wonder who suddenly wants so much car insurance.

Across the pond, Americans are celebrating that “core inflation,” that is excluding things which matter such as food, rose by only 0.1% in one month. Then, with the same breadth, they shout about oil inflation rising up to more than 7%.

The latter may have something to do with Palestine. The Arabs are presumably unhappy about Trump moving the US embassy to Jerusalem, but there is probably another, perhaps more fundamental and longer term cause.

Base dollar monetary supply according to FED

America’s semi-privatley owned central bank has printed almost 1 trillion dollars of base money, that is coins and paper in your pocket, just in 2008. And since then has printed another $2.4 trillion.

Who exactly gets all these fiat block rewards remains a mystery and just how the US government is so much in debt when they printed trillions over the past decades keeps being quite a puzzle.

But regardless of who first gets all that mint, it trickles down as we are told, usually taking the form of inflation, or, your paper money loosing value and being unable to buy you today what it could buy you yesterday.

If you get paid more at the same time perhaps it doesn’t matter, except that your sons and daughters may have no chance of affording your $20,000 bought home, which now costs a million. A number that, perhaps to our grandsons and daughters, might not sound much different than $20k sounds to us, if we are lucky.

But if wages do not keep up, you are getting very much poorer. And just as with interest, inflation has a compound factor too, so next year you are not just 3% poorer, but 3% times 3% to crudely simplify.

In the midst of all this, the European Central Bank is still money printing $60 billion per month. To put that into perspective, they are creating purely out of nothing an entire ethereum market cap every single month.

And then they call this space a bubble. Perhaps, but at least we know exactly who gets ethereum’s block rewards, while having no clue who exactly gets this ECB $60 billion fiat block every month.

Certainly not the ordinary person down the street who suddenly now has to pay 23% for butter, out of all things, and quite a bit more for cheese too. As if we are running out of cows to milk.

Cows, which we breed. But while that breeding takes some time and effort, so making their amount limited in a way, the money printing takes no time nor effort, so suddenly you need more paper to buy your morning coffee because part of your paper has gone to some place that no one really knows.

 

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