Official: UK Inflation tops 20%
Today’s M4 money supply announcement: 18.8% year on year. That’s a huge increase in money sloshing around.
The real figure for inflation is the difference between money supply growth and growth in the real economy. But the latter is negative: -2.8% projected by IMF. That makes the annual rate of inflation 21.6%.
With politically-distorted interest rates around 20% lower than that (-20% real interest), it’s no wonder noone wants to lend money!