This is a controversial statement and I speak for myself, not this blog.
Many people have a fear of inflation, which means that hyperinflation is beyond their comprehension. Under normal circumstances, I too would be fearing inflation. However, these are not ordinary circumstances.
We have just come out of a recession, and we might be going back into one too, debt levels are at a record high! The recovery is weak, in fact it’s almost non-existent.
Inflation is currently 4% – relatively high compared to what has been experienced in the recent past. The Bank of England base rate is 0.5%, the lowest it will ever be and the longest it has ever been held so low. The average credit card interest rate is 18.9%, the average mortgage interest rate is 3% and the average loan is 9.2%.
Household debt levels are at a record high, having breached the £1…
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