The Truth About Low Growth and the 1%

Western Economies are exceptionally sluggish. We are in a sustained period of slow growth and high levels of government debt (Sovereign Debt).
Interest rates are low, wage inflation is very low, and consumer goods such as food and fuel have enjoyed a period of deflation.

In the UK it was normal for 1 loaf of bread to be £1.20
Now one can buy 2 loaves of bread for £1.

What is very obvious is that the rich are getting richer, the 1%.

What has happened since the financial crisis that began in March 2007 with Bearn Stearns being rescued by JP Morgan, and then UK mortgage bank Northern Rock applying for emergency funding from The Bank of England in late August 2007, we have seen other asset classes rise in value.

Property has rocketed in value, Shares have gone up in value.

Thus anyone like the rich owning financial assets likes real estate or shares, have seen their wealth increase, for doing nothing. That is what happens when you are lucky enough to be in the right place at the right time.

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