Tony Hammond
Sep 3, 2018 · 2 min read

But for mass immigration….people need to live somewhere…In the 1890s the London — East End population increased dramatically, before the 1905–1914 Aliens Acts limited immigration. Hotbedding was common alongside ‘houses of multiple occupancy’ (slums)…and the price of housing rocketed.

Over 8 million people added to the population since 2001…and thats largely non-EU immigration by the way!

  1. Brexit is not going to create anywhere near similar 2008 financial heart attack, with 2008’s failing banks, moneyprinting response and asset inflation on a grand scale, whatever they say, even if we goto WTO rules.

2. Rising Rates: It is not actually about the interest rate — it’s all about the REAL interest rate. Without interest rates held above the rate of inflation (i.e. a real interest rate) all assets rise in price (as the economist Wicksell noted in the way credit money works). There has been a great unleashing of credit by the BOE, and employment is high, which is when interest rates rise. However, I expect interest rate rises to be held below rising inflation — as they have many times in the past for long periods.

Warren Buffett noted that on 31/12/1961 the NYSE was 784, and 20 years later on 31/12/1981 it was 785. The difference was that we had a period of rising interest rates and inflation (ending in 20% inflation rates!) in the meantime. It made little difference to peoples lives and jobs for most of that time.

3. Private debt: The amount of private debt also mandates a continued period of ‘financial repression’ (no real interest rate) by the BOE to inflate away its impact even as credit is restricted.

A Corbyn government might actually increase nominal sterling prices as they plan to borrow vast sums and increase spending which would add a stimulus to both nominal GDP and inflation. The currency would certainly take a dump but it’s still ague-able that a full blown currency crisis would appear.