The United Kingdom Leads the Way... to Hell
Aug. 31, 2022 (EIRNS)—The British government and secret services have led the West’s war drive against Russia. Now they are out to show the world that they can out-Volcker Volcker on the economic front too.
U.K. inflation will soar to over 22% next year, according to Goldman Sachs, outbidding Citigroup’s earlier projection of only 18.6%, RT reported. Purportedly to combat such inflation, investors expect the Bank of England to adopt “drastic measures,” Bloomberg reports, including raising interest rate by 2.5% over the next couple of months, bringing the current rate of 1.75% up to 4.25%.
Goldman specifies that, if energy prices keep rising, “the U.K. may be forced to hike its energy cap by a further 80% in January, which would in turn push inflation up to 22.4% and cause a 3.4% drop in the country’s GDP,” RT reported. But even if energy prices stabilize—highly unlikely, as things are going—inflation will hit 15% in January, and that also spells recession.
How does that impact the average British subject? According to a new poll reported by London’s Independent Aug. 29, one in four Britons simply won’t turn on heating at all this winter, while 69% said they would turn their heating on less. “The research comes amid warnings of a dire winter, as the energy price cap is set to rise 80% by October, pushing the average household’s yearly bill up from £1,971 to £3,549 ($2,300 to $4,150),” according to RT.
The Liberal Democrats’ Cabinet Office spokesperson Christine Jardine had some choice words about this: “It is a national scandal that parents are having to choose between heating their homes and feeding their children. It shouldn’t be like this ... (an) economic catastrophe (is) just a month away.”