Just stop complaining already.
Here’s why you’ll own nothing and why you’d better like it.
UK grocery price inflation just rose by 17.3% YoY and overall CPI inflation exceeded 10% in the year to March. That’s double-digit inflation amidst soaring food and energy prices.
Luckily, the Bank of England’s (BoE) Chief Economist Huw Pill has a solution:
“[People] need to accept that they’re worse off and stop trying to maintain their real spending power by bidding up prices, whether [through] higher wages or passing the energy costs through onto customers.”
That’s right, the peasants are to blame for inflation.
For Huw Pill, it remains one of life’s great mysteries why the paupers would clamor for wage increases instead of just rolling over.
However, there’s one thing that’s certain.
Runaway inflation has absolutely nothing to do with the BoE’s loose monetary policies. Money printing is not the problem here.
BoE Deputy Governor Ben Broadbent has been very clear on this point. In his expert opinion, Russia’s 2022 invasion of Ukraine is the culprit:
“As an explanation for the inflation we’ve experienced I think this fits the actual data better than the single fact of strong household money growth during the pandemic.”
That’s right, it’s Putin’s fault.
No need to take a closer looks at the BoE’s £65 billion quantitative easing program end of last year. It’s completely beside the point. And so is the BoE’s unprecedented balance sheet growth of 60% in just the past 3 years.
Money printing is not to blame. Got it?
This is the consensus of Western leadership.
Now compare and contrast this with recent statements made by Javier Milei, the leading candidate in Argentina’s upcoming presidential election:
“The Central Bank is a scam. It is a mechanism by which politicians cheat the good people with the inflationary tax.”
He also referred to bitcoin as “the return of money to its original creator: the private sector. Money is a private invention.”
The real tragedy of course is that it’s taken 100%+ annual inflation and a 40% poverty rate for people like Milei to reach an audience in his home country.
Think that could never happen here?
In case you haven’t noticed, regular bank failures and double digit inflation are starting to become the norm in the West, and the BoE’s official position is to just accept it. This will seem eerily familiar to Argentinians.
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