Deal With Britain's Decade Of Inflation Before It Deals With You

by Glenn Fisher

I’m in this bar last night and I go to get a round in.

It’s only a small round. Three beers. For me, Theo and Frank.

Normally I put most things on card. But I had some cash on me, so got out a tenner.

I watch the bar lady ring up the till.

Are you mad, woman? Recalculate. This is insane! It’s three drinks. Didn’t it cost nine-pound-something last week? What’s going on?

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At least that’s what I was thinking.

In reality, having seen she’d entered the prices entirely correctly, I smiled, paid and took my drinks.

But for some reason it shocked me...

That three drinks were over £10.

I know it’s London. I know I drink the more expensive beers. I know it’s only because I was paying in cash that I noticed.

But that’s just it...

The Mulberry Bush pub in Southwark is not an inflationary vacuum.

Don’t think it is, anyway. That would be weird.

Fact is though, it’s happening everywhere around us. Prices are going up and up and up.

But you know that.

Like me, dear reader, you’ve probably just taken it as a fact of life. Prices go up - deal with it, right?

But problem is prices are going to start going up much more often and by much, much more.

I give Theo and Frank their drinks – a Peroni and a Kronenbourg. And I mention the price.

Being the Investment Director of The Fleet Street Letter, Theo knows a thing or two about the inflationary problem the country is facing.

So what is happening?

Between sips on his Peroni, Theo explains...

Plays like this. Old Gordon Brown and the Bank of England only have one tool to keep inflation under control: interest rates.

Big problem that. Because they already cut rates big time during the recession.

Here’s the thing, though.

It takes a while for rate cuts to have their effect.

12 months to affect demand and production... another nine for those changes to have a serious impact on inflation.

It’s what Theo calls the ‘seven quarter lag’.

Now this is crucial...

Interest rates started to be cut December 2007.

Started small. But then the rule book got thrown...

Big slashes. Now, in total they’ve been cut by a total of 4.75%.

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Doesn’t sound like a big percentage. But for interest rates. It’s catastrophic.

Add that to the huge amount of money being pumped into the economy through Gordon Brown’s money-printing ‘ponzi scam’

And it could all be about to go to the dogs.

Seriously. I wouldn’t be surprised if down the line we end up paying over £20 for the same round of three drinks.

(In which case, Frank’s paying for the round.)

Look. Hopefully I’ve explained it a bit for you here. But this is just a smidgen. The full story behind this is shocking. It’s shameful (on Gordon Brown’s part)...

And that ‘seven quarter lag’ is about to kick in.

It’s going to affect me and you. And it could do in a big way.

That’s why today I want to give you a look at this:

The full story - The Fleet Street Letter

It explains exactly what could happen to the value of your money if you don’t take action. But more importantly, it tells you the action you should take.

Have a read and think seriously about the advice Theo offers.

We have a chance here to protect ourselves and it’s one I think is worth taking. 

Best Wishes

Glenn Fisher
Editor
Shortcut Bulletin

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