The UK has been producing above average inflation numbers for a while now.
We already mentioned the risk of a potential hyperinflation in the UK, as the British are currently experiencing the repercussion of printing money out of thin air!
The QE’in of the British debt problem has not only accelerated inflation, but there’s another problem on the horizon: rationing!
Via The Telegraph:
She revealed Asda’s own “average household” income tracking showed families’ disposable incomes were falling fast, dropping 8pc year on year in May – the largest decline “ever”.
It estimates the average family now has £165 a week in discretionary spending power and are facing a £14 “gap in their pockets” forcing many to ration.
This is what you get when income levels don’t follow the rate of rising costs.
Meanwhile, people are fearing the future, with all the ‘doom & gloom’ coming out of Europe:
“It’s a toxic mix: Facts and fear. We have got to stop scaring people,” she said.
“When I speak to people in our stores every week what they tell me they are getting increasingly worried.
“We talk about things in the press, how bad things are going to be, they hear about another eurozone crisis, they read about debt in Greece and billions of pounds of bail outs for it. But if you work on a checkout in Swansea or Glasgow or Leeds then you truly don’t know what it means to you.”
Ms McKenna said Asda was not planning on a recovery in consumer confidence “any time soon”.
Fear: the next force for a potential hyperinflation!
“The monetary base of the country flees, producing widespread fear that individuals will not be able to convert local currency to some more transportable form, such as gold or an internationally recognized hard currency.” per Wikipedia.
We urge citizens of the UK to protect themselfs… while they still can!