Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21
UK Covid-19 Booster Jabs Moderna, Pfizer Are They Worth the Risk of Side effects, Illness? - 22nd Nov 21
US Dollar vs Yields vs Stock Market Trends - 20th Nov 21
Inflation Risk: Milton Friedman Would Buy Gold Right Now - 20th Nov 21
How to Determine if It’s Time for You to Outsource Your Packaging Requirements to a Contract Packer - 20th Nov 21
2 easy ways to play Facebook’s Metaverse Spending Spree - 20th Nov 21
Stock Market Margin Debt WARNING! - 19th Nov 21
Gold Mid-Tier Stocks Q3’21 Fundamentals - 19th Nov 21
Protect Your Wealth From PERMANENT Transitory Inflation - 19th Nov 21
Investors Expect High Inflation. Golden Inquisition Ahead? - 19th Nov 21
Will the Senate Confirm a Marxist to Oversee the U.S. Currency System? - 19th Nov 21
When Even Stock Market Bears Act Bullishly (What It May Mean) - 19th Nov 21
Chinese People do NOT Eat Dogs Newspeak - 18th Nov 21
CHINOBLE! Evergrande Reality Exposes China Fiction! - 18th Nov 21
Kondratieff Full-Season Stock Market Sector Rotation - 18th Nov 21
What Stock Market Trends Will Drive Through To 2022? - 18th Nov 21
How to Jump Start Your Motherboard Without a Power Button With Just a Screwdriver - 18th Nov 21
Bitcoin & Ethereum 2021 Trend - 18th Nov 21
FREE TRADE How to Get 2 FREE SHARES Fractional Investing Platform and ISA Specs - 18th Nov 21
Inflation Ain’t Transitory – But the Fed’s Credibility Is - 18th Nov 21
The real reason Facebook just went “all in” on the metaverse - 18th Nov 21
Biden Signs a Bill to Revive Infrastructure… and Gold! - 18th Nov 21
Silver vs US Dollar - 17th Nov 21
Silver Supply and Demand Balance - 17th Nov 21
Sentiment Speaks: This Stock Market Makes Absolutely No Sense - 17th Nov 21
Biden Spending to Build Back Stagflation - 17th Nov 21
Meshing Cryptocurrency Wealth Generation With Global Fiat Money Demise - 17th Nov 21
Dow Stock Market Trend Forecast Into Mid 2022 - 16th Nov 21
Stock Market Minor Cycle Correcting - 16th Nov 21
The INFLATION MEGA-TREND - Ripples of Deflation on an Ocean of Inflation! - 16th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

New NS&I 2.2% Savings Bond Ahead of 2017 Stealth Inflation Theft of Purchasing Power

Personal_Finance / Savings Accounts Nov 24, 2016 - 06:26 PM GMT

By: Nadeem_Walayat

Personal_Finance

With my forecast for CPI inflation expected to accelerate to over 3% per annum during 2017 and RPI perhaps nudging above 4%. The chancellor Philip Hammond in his first and last Autumn statement took the time to announce a 3 year fixed rate NS&I savings bond paying 2.2% available to all over age 16 from spring 2017. Yes 'currently' with RPI at 2%, 2.2% whilst not great sounds reasonable given the desert like landscape of today's savings market. But by the time it actually goes live and becomes available to UK savers, the now near decade long trend of the stealth theft of the purchasing power of peoples earnings and savings will continue which this propaganda bond will not provide any protection against, especially since its capped at just £3k!


This illustrates a perpetual trend of the consequences of tax payer subsided sub inflation interest rates for two primarily reasons -

1. To funnel artificial profits by means of low interest rates and QE money printing into the banking crime syndicate as I have been writing of since before the financial crisis of 2008 and repeatedly since as illustrated by my following in-depth analysis of October 2013.

14 Oct 2013 - The Illusion of Freedom - Democracy, Religion, Science and Propaganda), excerpted below:

DEMOCRACY and the Illusion of Freedom

The financial crisis has given the general population a window into the reality of the system of slavery that exists in the west to the extent that the bankster elite rule the country and not the politicians who in large part are nothing more than propaganda servants in the service of their elite masters whom they hope to eventually join the ranks of on leaving office.

This is why instead of holding the bankster criminal elite to account the politicians have in action rather than rhetoric gone out if their way to protect their masters, which means in Britain no bankster's have even been charged with a crime let alone gone to prison, instead they have ALL been BAILED OUT to UNLIMITED extent by ordinary tax payers, by the SLAVES who work for the elites in their factories, offices and retail outlets.

So all that happens each time a new bankster elite fraud is revealed is that the UK Treasury and Bank of England step forward to bail out the banks with ever escalating amounts of tax payer monies all the whilst deploying mainstream media smoke and mirrors to hide the extent of the bailouts, as exampled by the mis-selling scandals with another scandal revealed virtually every other month such as PPI mis-selling and the tens of billions that will need to be paid out as compensation for the LIBOR price fixing fraud, whilst the Bank of England's brethren continue to bank billions in bonuses on the basis of fictitious taxed wage slaves funded profits.

Meanwhile the politicians play with smoke and mirrors such as alluding to the fact that the share prices of many tax payer bailed out banks are now showing a profit. What they fail to mention is that the Bank of England has stuffed the banks full of some £500 billion of free money to ensure that the stock prices would be inflated so that the Politicians can announce a small profit on for instance the £40 billion capital injection in LLoyds HBOS, that I am sure the share holdings will be sold at a deep discount to the bankster elite just as Royal Mail had recently been sold for just £1.7 billion after the companies debts and liabilities such as the pension's liability of £12 billion was dumped onto tax payers. In total the cost to the tax payers could be as high as £20 billion for a £1.7 billion return.

The Liberal Democrats betrayal of virtually everything that they stood for from student tuition fees to electoral reforms, to rail fares illustrates the degree to which virtually ALL politicians SYSTEMATICALLY LIE. The truth is that in today's western democracies politicians just cannot get elected unless they LIE.

At every election promises are made and after every election virtually NONE are kept! Because politicians primarily serve the interests of the ruling elite and the primary purpose of politics is to create a dense layer of smoke and mirrors for the elite to hide behind so as to continue to keep the slave populations as docile and as productive as possible, which is far more difficult to achieve under dictatorships which tends to result in far less productive slaves.

At this point I can imagine that many people will be arguing that countries such as Britain have the welfare state and the NHS and myriad of other state interventions that support the general population. However, that is just what all farmers do, they tend to look after their live stock! The elite want healthy baby slaves to be born and then looked after, educated upto a certain level and kept in good health so as to maximise their productive capacity in the service of the elite. But slaves who imagine that by educating themselves to a high level will allow them to gain freedom will soon find themselves saddled with increasing amounts of debt for the whole of their lives for that is how the debt based system of slavery is designed to work. For most people all that more education will achieve is an even greater amount of debt. Like wise when slaves cease to be productive they are dealt with by systematically taking away much of the wealth they may have accumulated and finally being eliminated by the NHS.

2. To erode the value of government / sterling debt, as UK debt is inexorably trending towards £2 trillion, some 90% of GDP which demands higher inflation to erode its real terms value. Which is why the government scrapped the RPI index linked savings bonds some 5 years ago!

So if the government really wanted to help savers then it would INDEX LINK the savings bonds to RPI, otherwise the bond is PURE PROGANADA that WILL NOT KEEP PACE WITH INFLATION!

This is nothing new! For I have been writing of the consequences of the money printing debt fuelled inflation mega-trend for a decade as illustrated by my January 2010 Inflation Mega-trend book (FREE DOWNLOAD), which warned of what was likely to transpire for a decade and that the only way to protect oneself against is though accumulating assets such as stocks and housing that are leveraged to the inflation mega-trend. That are just as valid today as near 7 years ago!

UK Inflation is set to soar as I covered in my earlier analysis illustrates. And so the chancellors announcement will do nothing to prevent the inevitable stealth theft of peoples hard earned savings and purchasing power of wages.

04 Jul 2016 - BrExit Implications for UK Economy, Interest Rates, Bonds, Markets, Debt & Deficit, Inflation...

Therefore both of these factors look set to drive UK CPI inflation significantly higher to above CPI 2% and very probably to spike above 3% early 2017, and RPI probably spiking above 4%. However, beyond that unless the surge in inflation triggers significant wage inflation then CPI inflation should then soon start retreat to back below 2% and the trend towards that of the inflation rate of the US at that time a year from now.

So the bottom line is that despite brexit inducing economic weakness, expect UK CPI Inflation to spike towards 3% and RPI to above 4% by early 2017, probably peaking for January 2017 data before trending lower into mid 2017

For more on the prospects for post Brexit Britain see my in depth pieces of analysis that are likely to increasingly become manifest.

Ensure you are subscribed to my always free newsletter for in-depth analysis and detailed trend forecasts as we escape the Trump delirium vortex for a few weeks at least.

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2016 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in