Go back and read my comments and your replies in the strikes thread, where I was warning that inflation busting pay rises would potentially fuel inflation and were a major factor that the bank of england were monitoring in their rate hike decisions. They clearly warned that any whiff of a wage price spiral would lead to rates ratcheting faster and harder.
I was trying hard to say that inflation is really hard on the lowest earners and middle income earners like myself would need to take on some pain and not push for inflation busting pay increases, as it would directly impact on driving interest rates higher.
When public and private debts are so high raising rates are really punitive. I warned on the impact that would be felt on mortgages, rents and pensions if rates rose. I also warned on what happens when yields increase, particularly with short term gilts.
Borrowing costs increase and volatility kicks in making a recession far more likely. After taking a kicking I warned you would understand in around 18 months. Its now nearly 12 months in and I’m afraid it’s looking ugly.