The current financial issues in the UK are waking people up to the question 'What is money?'
Once you learn how the current banking system works and then you learn about Bitcoin there's no going back.
Discussion
The government sold £4bn of bonds today with an interest rate of 5.668%. Seems nobody wants Gilts.
If the risk free rate of return is 5.7% and inflation target is 2% then the commercial bank rate should be…
5.7% + 2% + 1.5% = 9.2%
That’s what the commercial bank rate should be if inflation were under control. It’s not. CPI is 7.9%, which is ~590 basis points above target.
Another credit crunch seems quite likely from our circumstances today.
The highest rate in 25 years too I believe. We're heading into a world of hurt it seems. Where are you in the country Stu? London?
Very true davies 🤝