Bank of England joins the Fed in setting interest rates at 5% - Governments caused inflation, so the people must pay for electing a cult of anti-humans intent on destroying their country

Let’s start with a missive from Milton Friedman:

Pretty emphatic, no?

The statement does not distinguish between money supplied from a central bank or a government.

What the UK (and US) experienced over the C19 years was equivalent to funding a world war.

The UK government printed vast sums of money, but rather than support a war effort, it paid people to stay at home and do nothing.

At no point in time did the inflationary impact of the “lock-down” measures feature in any government thinking. This is consistent with the socialist/Maoist/Marxist mantra that money is not important to the economic well-being of a country – control of the ballot box and the culture/psyche of the population is far more important.

Where am I going with this?

Well, the measures of the UK government caused massive inflation (as in the US and EU).

Note that ALL the measures pursued by the UK government had been proven useless over past decades of research. Masking, lock-downs and social distancing - all of these measures were useless and harmful to the general population and were imposed on a population struggling with the fear and disgust of what was a relatively and provably - HARMLESS SPIKE PROTEIN.

The spike protein was harmful - the issue is how bad was it compared to other viral infections and existing health conditions like cancer, heart disease, Alzheimer’s and so on. I believe the answer to that is an emphatic no.

Money that went to C19 measures should have gone to reducing hospital waiting lists and elective treatments AND supplying higher quality food.

These false measures were known AT THE TIME, as was the early to mid-stage cure AND PROPHYLAXIS – using treatment protocols like IVM and HCQ

Note also  that RT-PCR tests were used against manufacturers (and inventors) advice and this was before the roll-out of toxic C19 mRNA and viral vector injections. The brutal psychological torture of the elderly and infirm, their murder by Midazolam and morphine (and Remdesivir) are included in the UK “fiscal deficit” numbers for the year to 31 March 2021.

Back to the fiscal impulse, inflation and interest rate issue.

From here:

The budget deficit: a short guide - House of Commons Library (parliament.uk)

“The deficit reached a peacetime record in 2020/21 of 15% of GDP, largely for two reasons:

1. the Government provided support to public services, households and businesses during the pandemic, which cost around £229 billion;

2. the virus and the lockdowns aimed at slowing its spread took the economy into a severe recession. Less economic activity meant smaller tax receipts and more government spending on areas such as unemployment benefits.”

15% of GDP for the year ended 31 March 2021 – the first year of the pandemic.

Now, not all that 15% was an increase due to C19 measures. The UK government chooses to run fiscal deficits with a passion – so does the US – no matter what “party” is in power. After all, it hasn’t run out of other people’s money…yet. There are always printing presses, right?

Let’s call it an increase of 12% of GDP – with a “normal” living beyond means annual fiscal deficit of 3%.

Taxes for 2021 were around 33% - so on a percentage of a percentage basis, SPENDING increased by 12/33 = 36% of taxes. Holy cow!

From here, by way of comparison:

Is the UK tax-to-GDP ratio on an upward trajectory? | RSM UK

“UK tax-to-GDP ratio for 2021 stands at 33.5%, substantially lower than other major European economies. The preliminary 2021 tax-to-GDP ratios for Germany, France and Italy were 39.5%, 45.1% and 43.3% respectively. “ .. “The UK tax-to-GDP ratio for 2021 is, however, higher than that of Canada (33.3%), and remains materially higher than that of the United States (26.6%).”

What could any rational, trained and independent central banker make of this profligacy?

After all, it is a massive increase in the supply of money to the economy. All borrowed – or rather, borrowed where possible and any shortfall “printed” by the UK’s central bank, the Bank of England.

So there is an inflationary “impulse” of around 12%. Similar numbers occurred in the US and EU.

Central banks know that changing the culture and behaviour of national economies using monetary policy settings to control inflation requires somewhere between 18 and 24 months. Policy for 2023, needs to be set in 2023.

(Note that 18-24 months time period - it applies to changing all sorts of cultural characteristics like music, arts, BLM, Anti-Fa, CRT, LBGTQ++ etc).

The impact of the massive increase in UK government spending of 12% of GDP in the year ended 31 March 2021, could not be felt until September 2022 to March 2023.

So what was inflation in the UK over September 2022 to March 2023?

From here:

Inflation and price indices - Office for National Statistics (ons.gov.uk)

Well look at that. Inflation peaked at 9.3% in November 2022.

And now?

Having completely failed to respond to the 12% inflationary impulse from UK government actions in a fake pandemic, handled by either incompetent or sadistic politicians and regulators, the Bank of England is setting a 5% interest rate for 18-24 months time.

That takes us through the 2025 calendar year.

The Bank of England should have raised interest rates to around 10% in 2021, to head of the inflationary impulse from the UK governments and regulators barbaric, malicious and useless fiscal policies over the 2020 to 2021 time period. Instead the Bank of England did nothing, except enable the policies of the UK government (with money printing and low interest rates).

Now, the Bank of England has set a 5% interest rate, presumably in anticipation of inflation running a little higher than its 2% target and needing to have “tight monetary policy settings” for around, what, 3-4% inflation over 2025?

My bet is that inflation would – barring the socialist/Marxist/Maoist cult bringing in more “green” BS and the creation of labour and supply inflation from enacting changes to the International Health Regulations – return to a rational 2%, all things being equal in 2024, and continue at that level in 2025 – making a 5% interest rate RISIBLE.

Of course, governments and central banks cause problems wherever they interfere, so there is little to no chance that they will simply get out of the way.

After all “you will be assimilated” and “resistance is futile” on the road to a socialist/Marxist/Maoist world of excited misery run by fools, egomaniacs and sadists.

Onwards

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