The UK Economy – Lots of Problems, Few Solutions Part Two Housing Crisis The property market and its many problems are so complex and layered that many analysts speak of multiple housing crises at once. In the UK, there is a never-ending housing bubble. House price in Britain have increased by over 200% since 2000 meanwhile - as we saw previously - wages have stagnated during that same period. Various governments have consistently pledged to remedy the problem but in truth very little has been achieved.
I wonder if the markets will decide the UK is basket case at some point resulting in a large devaluation of the pound, which will likely raise inflation and the cost of borrowing. John Gray thinks we could be heading to an Argentina situation.
You say that Britain suffers from a strong £ that favours the City over exporters, but also that the fall in the £ has led to higher import prices which go on to reduce exports. Which is it?
Of course the right answer is to define the £ in terms of a commodity like gold or silver, reducing both financialisation and inflation.
I wonder if the markets will decide the UK is basket case at some point resulting in a large devaluation of the pound, which will likely raise inflation and the cost of borrowing. John Gray thinks we could be heading to an Argentina situation.
https://youtu.be/yCG1-30auFc?si=Va7FJJJHjbC4UMIi
I think it was this video he talks about it.
It does appear even with the shortage of housing and rising population prices are coming down quite quickly.
The economic shock required to make the UK grow again is outside the Overton window for MSM to contemplate. Will it be forced on us?
You say that Britain suffers from a strong £ that favours the City over exporters, but also that the fall in the £ has led to higher import prices which go on to reduce exports. Which is it?
Of course the right answer is to define the £ in terms of a commodity like gold or silver, reducing both financialisation and inflation.