How Many Reasons Do You Need

Dear Reader

  • Today they announced that inflation had gone up (again) but it was 60% higher than the Bank Of England target last month,
  • That’s 12 months out of 12 this year above their target to maintain control of monetary policy,
  • Later this month we have the utility bill hikes to further drain our wallets,
  • Next month we have a 2.5% increase in VAT, that’s almost EVERYTHING increasing by 2.5%! Your food, clothes, mobile phone bill, the lot!
  • Government spending cuts to all councils will mean fewer services can be provided unless they hike council tax,
  • Government funding cuts have caused businesses to freeze or even lower wages,

I generally try to keep these bulletin emails short and sweet but if I was to write the list of issues facing out monetary system in the last quarter of the year Id be several pages on by now.

I hope you’re getting the point, you have less, but things cost more. This is a downwards spiral, one feeding the other. Increasing prices need an increase in wages, lower wages cause protests, protests (if they aren’t ignored) lead to reform, increased wages cause increased prices, etc, etc, etc!

Everything has a repercussion, how do you think our British companies will fare in the future when most people can no longer afford higher education. Currently in the world, for % of GDP spent on education we rank 46th along with Mexico and South Africa, but we are reducing it????

Here is a simple calculation for you to analyse if you are better or worse off. Take the amount you had in savings this time last year divide it by £1.10 (the average cost of diesel then) to work out how many litres of diesel you could have bought. Now take this year’s figure, including all the interest and divide by £1.23 (the
average cost of diesel now). If the figure is less this year you have less ‘money’ even after interest.

Now we will work the other way round, let’s assume you took my advice and invested £10k in gold this time last year, so we divide £10k by the price of Gold (£688) gives us 14.5oz. Then this year you sell it, 14.5oz times £889 gives over £12’915. Even with inflation you’re on to a winner.

I’ve said it before and I’ll say it again, in an unstable economy you can’t beat Gold!