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7 Reasons why Britain will never recover

Old myths die hard. The one about how workers’ wages caused the inflation of the 1970s being among the hardest. In fact, Britain had imported the inflation caused by the USA deficit financing the Vietnam War and the Cold War. Further misery followed, when oil-producing former European colonies insisted that Britain pay a reasonable price for their oil.

It was an oil shock, too, which finally brought inflation under control. The Iranian Revolution and the ensuing Iran-Iraq war caused oil shortages which plunged the British economy into a severe recession. This was compounded by central bankers raising interest rates to historically high levels. And the false lesson that the central bankers, economists and politicians took from these events was that using interest rates to cause a recession was the best way of bringing inflation under control.

That error is being put into practice in 2023, as central bankers attempt to address a new round of inflation.

But while torpedoing the economy is easy, returning to growth is a much harder prospect – and one that central bankers and politicians seem to have failed to consider. The blithe assumption being that Britain will simply repeat the approach taken by the Thatcher government in the 1980s to smoothly return to prosperity.

In this video, I present seven reasons why the recovery of the late-1980s and 1990s cannot be repeated in the 2020s – and that, as a consequence, Britain is set to be the first developed state to experience an irreversible collapse.

As you made it to the end…

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