It is unlikely to last two years. The cards are being dealt anew and after the pack has been shuffled, we shall look down at our hand and instead of seeing hearts, clubs, spades and diamonds, we see Mr. Bun the Baker and friends.
Elsewhere, in that
A Common Thing thread, house prices raised their heads and the housing market was compared to the 90s with neg. equity, etc. I feel that is wrong. This time around things will change so dramatically that all the old rules will be broken - indeed, they are being broken today and everywhere we look.
Reasons -
1. Debt. The UK, the US, the EU, China - all with unbelievable levels of debt that can never be repaid. Mathematically, they cannot be repaid - unless we get super- or even hyperinflation, i.e. 100% p.a. or 50% p.c.m.
2. Information. Everybody knows everything instantly. That has never happened before in the history of mankind. As I stated in that thread, one person in a housing estate is forced to sell for 20% less than the 'Zoopla' price and INSTANTLY every person on Planet Earth can see that and reprices every house on that estate accordingly!
In the past, I had to wait for the newspapers to arrive to check out what the stock markets around the world were doing - now I can watch them as they move from second-to-second! That means every market, from meat to grain, from houses to cheese is getting exponentially more volatile!
3. Globalisation. Love it or hate it, everywhere is connected to everywhere else today. If China crashes, the effects around the planet will be profound - and if the US defaults on its massive debts, the results will be even more profound.
Every card in the pack is really just another domino! And every national leader is desperately hiding the extent to which their domino is about to fall. It could take one crappy little country like Greece or Egypt to implode and, just like Lehman Bros, others far larger could follow. (I am not saying that they will, but the danger is there!)
4. Sentiment. The Americans call it 'Bifurcation'. A clumsy word for splitting apart. The US is splitting into a fairly left-wing Democratic Party and a Republican Party that has been kidnapped by right-wing extremists that genuinely want blood! Behind these extremists is a billionaire named Barre Seid who last year donated his electronics manufacturing company, Tripp Lite, to a nonprofit tied to the radical right called Marble Freedom Trust. The political scene over there is like nothing we have ever seen before - these people are totally looney and out of their skulls!
At the same time, the world is 'bifurcating' East and West. The Saudis are siding now with Russia and China and planning their own Eastern bloc digital currency, the West is doing the same and planning their own currency, known at the mo as CBDC (Central Bank Digital Currency). The two worlds are colliding in Ukraine and Russia is trying to drag Belarus into its malaise.
The upshot of all this strife is a world that is at war with itself - and quite where that ends is anybody's guess!
But back to the Batmobile - Boris? Nope. If a great statement were to suddenly stride upon the Westminster stage and drag one, or better still, BOTH political main parties back to reality then maybe there would be hope for UK PLC. But Boris has neither the backbone nor the intellect of a Churchill or a QE1 and he certainly does not have the moral authority!
As for Sunak -
In the meantime, the UK Prime Minister is a former employee of Goldman Sachs, a company so mired in greed and controversy that it has been described
"The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money."
Rishi Sunak, (our third PM in seven weeks) has scrubbed his Goldman Sachs and hedge fund career from his LinkedIn profile and
from his official government bio. But, unfortunately for Sunak, those careers have been assiduously chronicled in countless newspaper articles for more than a decade – and not in a good way.
Sunak worked at Goldman Sachs from 2001 to 2004, and left to obtain his MBA at Stanford University, following which he joined TCI hedge fund in 2006 as a partner and worked there until 2009, when he left to co-found the hedge fund, Theleme Partners with Patrick Degorce. Sunak worked at Theleme Partners until 2014, when he moved into conservative politics in the U.K. That’s a total of 13 years involvement in those financial markets that created the 2008 crash and Sunak has reduced his involvement to one short sentence in his bio.
Former GS employees are at the very top of every financial institution in the West - from the Fed to the BoE and the ECB and now the PM - all GS alumni.
The very institutions that have created the mess we are in are now are today controlling almost every lever of power in the Western world.
I don't hold out much hope there!