The UK Mortgage Time Bomb Fuse Was Lit in 2008.

Saturday June 17 2023 Monaco 64 home of alternative economics and contrarian views first of all I'd like to uh wish you all a very good weekend and I hope you're all doing very well the weather here in England is quite nice it's cooled down a little bit but I think it's going to get warmer later on and today I want to talk about the UK that

time bomb I have a playlist about the topic which you can look into on my YouTube channel and uh I I think it's detonating as we speak and uh households are going to be hurt the most I think small businesses as well small and medium-sized businesses the government will get hurt but the government can always do things that we can't do they can get the bank

of England to to print money for them and they can borrow a very very low rates uh albeit right now rates are going up but they can always find an excuse and what I want to focus on today is uh the blame game or the scapegoat and I think uh we need to be very careful who we believe for the troubles that our economy is in

right now with the rising cost of living which is the consequence of inflation and uh that's what I want to focus on and before I look into uh inflation and the rising cost of living and the scapegoat mentality I want to read this uh quote from Felix summary AKA The Raven of Zurich and I'm going to put a link to his uh biography or Memoirs in

the description of this video and this is what he said the state alone is responsible for inflation inflation without government or indeed against governments is impossible so what he means here is that yes only government can create inflation because only government has access to the printing press and to the central bank you and I cannot go to the bank of England and uh just ask Andrew

Bailey to print a million pounds for us the government can and that's what inflation is all about and what does it do it's very simple it dilutes the milk so let's say it was the bank of England that they used milk as money so uh the government just asked them to create more milk and they didn't have enough milk so they just put water in it

so that's what they do uh the uh the money should be gold and silver but they're just putting paper into it and it's diluting the value of the money so that's what inflation is with Rising inflation bank failures and massive layoffs across multiple sectors or if the economy remains uncertain it's no wonder the central banks have been getting prepared by stockpiling gold at itm trading we

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the link in the description below and a lot of you probably know my old viewers and subscribers that I warned back in 2016 that uh brexit was going to be used as a scapegoat for a deliberate inflationary policy and why deliberate why would the government inflate deliberately well because the government is the biggest debtor out there and uh they've got this capacity to create the currency

out of thin air it dilutes it it makes their debt worth less so what happened in 2089 well the UK government had to bail out the bankers in the city of London and Wall Street and how do they do that well it issued hundreds of billions in debt guaranteed these failed Banks took over some of the failed Banks and the bank of England obliged by printing

money that would that's what QE was all about I think they did about 435 billion that was up until uh 2020. and that's what inflation is and we're paying now for the debasement of the currency all the years of money Printing and uh really negative real interest rates as you can see here by this chart that I made and I've used the RPI the retail price

index because it's a much better reflection of the rising cost of living for the average household and as you can see prior to 2008-9 the bank of England rate was almost always a few percentage points above the RPI so that kept uh prices in check that kept inflation under control and by inflation I mean the creation of currency and credit out of thin air not just

by the central bank but also the private commercial banking system but as you can see the the system collapsed in 0.809 and that since then they've kept the uh base rate way below the RPI and it's been happening well for 14 years now we're in 2023 this started in 2008 and nine maybe even 15 years now and uh even with a rate a bank of England

rate at four and a half which a lot of people think is really high we might go to five and top at five and a half what we've got RPI at 11.4 that was the latest number uh so the the real rate is still very negative so they're continuing to inflate and that's why we're seeing a rising cost of living uh the pound doesn't go as

far they call that inflation but the inflation is already happened the horses have bolted already from the barn and what we're getting now is the consequence and that's why I always think that it's very important uh to know to stick or know the real definition of inflation and not to call CPI or RPI inflation but the consequence uh thereof so back to scapegoats while I'm not

surprised here's Mark Carney he's a former Goldman Sachs uh alumnus he's also a former governor of the Bank of Canada and uh he's also former governor of the bank of England uh from 20 July 1st 2013 to March 15 2020. and that day is very important so Mark Carney who's also uh an Uber uh wef member very much into this climate agenda uh he's come out

and he's blaming brexit for inflation claims Mark Carney former bank of England governance says the biggest shocks in decades could take years to unwind and he's actually saying that he warned that brexit would cause economic problems that's fine but uh I think uh it's got a lot more to do with the creation of money and credit that we've seen what we're getting now is the consequence

of years of inflation from people like Mervyn King uh Mark Carney and now Andrew Bailey it's not because of brexit we've had high uh inflation in all other countries yes here it's been a bit higher but why do I think it's higher here well because the pound is not as an important Reserve currency as the dollar or even the euro so uh the bank of England

thought in 20 March 2020 and he kicked off this policy of they cut rates from 50 basis points to 25 in March of 2020 that was under him they announced more QE that was under him and uh Andrew Bailey just took the Baton and continued the policy and we went uh from 435 billion in QE uh to uh almost uh 900 billion uh total assets by

the end of 2021 so they doubled uh the balance sheet more than doubled the balance sheet they cut rates eventually to 0.1 that was under Bailey but it was Mark Carney who kicked it off so for him to blame brexit for inflation is uh dishonest and it's just trying to fool people it's to try to uh yeah to track the attention from the real problem which

is this uh Central Banking Fiat money currency system whereby us the taxpayer the general public uh get burned uh both ways when the banks make huge profits they keep those profits when the banks collapse like they did in 0809 they keep the pro well they don't make profits but they still get their bonuses the bankers they're bailed out uh by us and they stay in business

and we get lumbered with all the debt with a depreciating currency which is basically uh the consequence of inflation so um yeah so just wanted to show you here some charts you can see that Mark Carney he he cut rates uh in 2016 after the referendum from uh half a percent to 25 he tried to raise it uh back in 2018 he didn't even raise it

back to one percent it was at 0.75 and then he started cutting uh just before the lockdowns and then they announced more QE and that my friends is why we have uh Rising prices or what they uh erroneously call inflation we've had the inflation already so now we're told that uh the bank of England is uh hawkish it's raising rates but as you can see uh

RPI and even CPI is way above the base rate and we're also been told that yeah they're unwinding the balance sheet or doing quantitative tightening but I I've looked at the bank of England numbers and uh yes the amount of assets they had under their asset purchase uh program uh the top was 894 billion 947 million that was in December of 2021. do you know how

much it's dropped since then and that's like 18 months well it's only dropped 7.9 percent in which we're still at 823 billion 792 million as per the latest data and uh prior to uh 2020 the balance sheet was around 445 billion so it's still 85 percent bigger than it was pre covet and uh it's I think almost a hundred percent bigger than it was pre 2016.

so a lot of that happened under Mark Carney and he kicked off uh the rate Cuts in 2020 and also the QE but the policy of inflation as I said is uh is one that is uh deliberate because it makes it easier for the government to to stay in power or the state really doesn't matter if it's conservatives or labor this is this would have happened

under labor I'm not slagging off any parties here it doesn't really matter they play for the same team they they play for the people who control the currency the bankers and uh yeah and we're paying for this yeah a lot of people's uh mortgages and house values were saved back in 0809 but uh we're now paying for the consequence of that and we're also paying for

the largest of 2020 2021 where mortgage rates got to really low rates and now that the uh consequence of inflation has kicked in we're gonna get a debt uh problem we we're gonna get a mortgage problem and I think that will be the biggest uh crisis and it will be more for households and this is out today here in the I newspaper UK mortgage rate crunch

is bigger than uh the 80s or 90s say experts the average person remortgaging will see their repayments Rise by 2 900 a year according to resolution Foundation yeah that's about 241 pounds extra a month and that's just the average um person with an average mortgage so um I spoke about this a couple of days ago they're even calling it a mortgage Time Bomb so they're using

the language that I've been using and warning about uh for for years and it's coming home to roost and hopefully a lot of you have been following me have tried to pay off a lot of your debt debts and mortgages uh in the past a lot of people asked uh well if they're gonna keep inflating though uh it's gonna write off the debt well that's true

but if you leverage yourself too much if you take on too much of a mortgage too big of a mortgage and like people did in 2020 21 and they encourage people to do that then when rates start going up it's a nightmare unless you have a really good job a safe job that's paying well and and then you'll be okay uh but uh yeah it's gonna

be a rough road ahead for everyone and uh yes they're gonna blame everything else but the government and the bank of England and I guess uh the general public uh is to blame to some extent because they would have been unhappy if they had let uh everything collapse in 0809 there would have been probably riots in the streets so that's why they had to to keep

brexit so we're going to continue to see unfortunately uh a lot of uh mortgage defaults we're gonna see uh prices drop quite a bit house prices and uh I think rates haven't gone up as much as in the early 90s like to 12 percent but I think they could actually even though a lot of the mainstream allies think it's gonna top uh maybe later this year

and next year unfortunately I think is going to get worse and uh the fact that uh they cut rates almost down to zero even mortgage rates allowed uh many people to borrow a lot their mortgages got a lot bigger in terms of amount than it was 25 years ago so even uh a rising rates to let's say eight percent could be worse than the rise in

rates that we had in the 90s to 12 percent so if you don't have a debt or mortgage problem and you've got a lot of savings you might be asking what what do I do with my savings do I put it in a deposit after all interest rates are rising yeah maybe you you could do that some of it but I also think it's still uh

very uh good time to keep stacking gold and silver and why do I always talk about gold and silver well because they're real money and they can't be uh created out of thin air willy-nilly like the central Bankers do with fiat currency so they hold their value over time yes they've their prices and fiat currency uh fluctuate over time but if you go back to the

70s uh one ounce of gold was like 17 pounds and now we're in the almost up to uh 1600 we've come off a little bit and I think that's going to continue because it's going to be the only way that they can pay off the debt the government and uh unfortunately households are gonna get hurt and uh probably BlackRock and a lot of the private Equity

groups they're gonna swoop in and buy a lot of uh homes and uh it's all part of this program I guess of the globalists that uh want you to own nothing and be happy so that's where I'll stop here um tomorrow I'm not sure I'll be doing a live stream because we're going out for a barbecue to a friend's house it's Father's Day Rudy's gonna go

as well uh our friend has a couple of dogs I think he's gonna have a good time with them and uh so yeah I wish you all uh a great uh rest of the weekend again and uh take care bye