The Executive Chairman of The World Economic Forum, Klaus Schwab, Mr. Build Back Better himself, infamously said that “You will own nothing, and you will be happy.” Schwab was talking about his “Great Reset,” or the total transformation of the way we live, work, eat, sleep, travel and interact.
Today, The Institute For Fiscal Studies produced its analysis of Chancellor Rishi Sunak’s budget. In short, the IFS says that millions of people will be worse off in 2022. Schwab’s dream has moved a step closer. According to the BBC:
Millions of people are set to be worse off next year amid spiralling costs and tax rises, says an economic think tank.
The Institute for Fiscal Studies (IFS) said that inflation and higher taxes on incomes would negate small wage increases for middle earners.
Low-income households will also feel “real pain” as the cost of living is set to increase faster than benefit payments, it said.
The chancellor acknowledged in his Budget that families are under strain.
Paul Johnson, director of the IFS, said that “millions will be worse off in the short term” as a result of soaring costs.
On Wednesday, the independent Office for Budget Responsibility (OBR) warned that the cost of living could rise at its fastest rate for 30 years.
Its latest forecast predicted that inflation, which measures the change in the cost of living over time, is set to jump from 3.1% to an average of 4% in 2022.
You don’t need to have read a book on economics, let alone studied it, to understand that a massive financial crash looms large.
Tom Stevenson, an investment director at Fidelity International, told The Telegraph last week, that although it is not known if a sharp correction in markets is around the corner, “the odds are clearly shorter than they were.”
Writing in The Telegraph Stevenson said:
“Even if it is not imminent, a correction will happen at some point. If you look at the performance of the S&P 500 in the three years following each of the major bear market bottoms over the past 60 years, there has been a pull-back of at least 10pc at least once.
We are now a year-and-a-half on from the Covid bottom and we are yet to experience that double-digit decline. Given the 5pc or so retreat in September, it is not unreasonable to wonder whether the inevitable correction is under way. It’s going to happen at some point.”
Bank on it, no pun intended. And keep in mind, when the crash does happen, bail-ins will become a reality. The government will take a percentage of your savings and your bank will co-operate with them. I’ve been warning my listeners of this, for years. See Cyprus.
But don’t worry, because you’ll be happy with nothing. Won’t you?
