RE: More red today chaps.12 Aug 2020 09:52
Its a bullish pullback. Same happening on Gold.
People don’t understand some basic things. A 20% reduction in the size of UK plc = a 20% reduction in tax revenues. Add that to the highest borrowing in history and suddenly it’s like a 50% reduction.
Chuck in a deflating housing market. High job losses low vacancies and then US -China trade wars, US election, negative treasury yields, I could go on and the stock market is running near all time highs. Madness!
You see people quote inflation as being low and gold and BTC are seen as a proxy for inflation. But they don’t get beneath the data. Inflation is low because of of asset depreciation, I.e your car is cheaper, your house is worth less you business is worth less and atm those are masking cost inflation.
E.g food prices going up. Basic materials, utilities, Fuel ironically more expensive compared to cost. And you wait for the council tax bills to come out!
That’ll be hidden as the govt will pick CPI, why, coz it excludes housing cost inflation!
Its the council tax (rightly or wrongly, irrelevant) that is most peoples biggest bill apart from mortgage and the council tax / business tax will go up 5% min you watch. Then that puts other costs up.
Price inflation will then overtake asset deflation then interest rates will go up and gold and BTC value will truly out. Sadly.
I feel for my kids and the younger generation. Hence make a bit of money where you can so once your set ok you can help the kids out. I mean after a few luxuries you can’t exactly go anyway to spend it now!
ATB
As I see it Trek,
£1
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