Skip to content

Richard Smith’s Money Minute #10

Inflation has gripped the nation again. Only this time it is not just the UK it is a worldwide thing. Globalism, connected markets have all conspired to make us all pay more. Sure, there are issues with fuel security in most countries, as politicians have taken time out to focus on others instead of solving the problems we face.

At some point elections will be about solving those problems instead of populism or whatever you want to call it then. No matter what issue you look at, the environment, education and schools. Or here in the UK the NHS the problems are solvable. Just not with the same thinking that caused them.

Worldwide we are seeing a power grab from Governments becoming more authoritarian, in Canada personal assets were seized from those people who disagreed with the State. Sanctions applied to Russians meant that their assets were frozen. These are individuals that have had their money and property frozen because they agree with a rogue state or at least are linked to a Government that no longer agrees with yours.

There are other threats. The threat to the dollar as a global currency, of the thought of overseas investors in the UK having their assets seized by an aggressive action will mean that they will consider investments held in pounds or dollars very carefully. If for example you are a Saudi Prince looking to purchase property in the UK, perhaps even a business. Then as soon as your country does something the British Government doesn’t like then…

If you can move your money anywhere why would you choose the UK?

One of the reasons is that the UK is incredibly dependent and accepting. Large chunks of our infrastructure are owned by overseas players, we are not independent in food or energy and successive Governments have done little to solve these problems. Investing in the UK, in particular in an area like fuel or energy could be seen as no risk and highly lucrative. With Government corruption at record highs with the two main political parties here happy to accept overseas money – there are lots of issues.

Longer term, I can see the United States arrive at the end of empire, we are going to see more mass migration than ever before as the poor south moves ever north. I think we are going to see less and less true politics, with more authoritarian Governments of all colours arriving in the next couple of years. There will be no back lash. Most people are just to worried about their next meal or holiday, their Primark haul or what celebrity punched who to focus on the real issues.

In the UK we have a binary electoral choice that seems like the same whatever way you look at it and none focusing on the real issues that need to be solved.

For our personal finances.

The usual stuff still applies. We are going to see a good deal of uncertainty over the coming couple of years and you will need to pay attention to your money stuff. It is valuable resource and you trade a big chunk of your life getting it.

We are likely to see food and energy prices rise further, we are going to see markets going up and down like yo yo’s and politics becoming more and more divisive. I think we have to be nicer to each other, I think we have to become more involved in making our money work hard and I think we should all be focusing on learning more skills, watching less Netflix.

The old stuff still works.

So I’d do this.

Review your spending.
Work out how you can increase income.
Spend less time politicking
Stop watching the news.
Reduce your time on social media
Get involved with debate where the positions are one sided.
Meditate – a lot. Get some focus back.

Most of this is not complicated but it will work for you. Change is coming as it always has. But we don’t have to sit back and watch it, although that is sometimes the right think to do, and we should get involved where we have some value to add. But we can’t let it drive us mad, can’t let it overwhelm us. There is a lot coming down the road at us which will make discernment a valuable skill to hone.

When you are ready to get a shimmy on with some of this please get in touch.