A new kind of Earthly Hell is brewing

THE historic low rates of return on money are having visible effects on many aspects of life.

Because mortgages are available at minimum rates of interest there is a huge global scramble to purchase property. With few alternatives available, the big financial institutions and hedge funds are adding to the problem, switching large amounts of capital into property. This stokes not only a huge rise in house prices but also the fires of inflation, pushing up the price of most other commodities.

If interest rates fail to rise in the near future, the UK economy could find itself overwhelmed by hyperinflation!

The US ‘Fed’ says the situation is temporary and things will return to normal in a month or two, but many disagree and believe the situation, like climate change, is beyond any remedy. The US, UK and the EU have launched the money-printing option known as ‘quantitative easing’ to support homes, jobs and businesses and their respective presses have poured out a tsunami of fiat money to stave off what would have been another catastrophic financial crash.

Demands for even more money are coming from education, energy, foreign aid, the NHS, border control and those responsible for the care of the elderly as if the UK treasury had a secret bunker full of banknotes. Care home staff are particularly hard to recruit with such low wages.

This printed currency is basically borrowed money and young people as they venture (hopefully) into the workplace will be the ones who have to make any repayments.

The near zero return on capital is good news for those whose religious belief tells them usury is evil but it rather looks like a new kind of Earthly Hell is brewing for everyone else!

John Lucy Exeter