Since the 2008 crash we have seen interest rates close to zero for a majority of the time. Despite that, and despite interest rates being the way to keep inflation in check, we’ve only just recently started to see inflation skyrocket.
According to Nigel Bolton, co-global head of equities at BlackRock, the world’s biggest asset manager, both of those days are over. According to Bolton, COVID has pushed the world economy into a “regime” and that investors can expect lower returns and higher inflation for the next decade.
Bolton claimed that it may look like we are at the peak of inflation, but that it’s likely not going to drop back to the 2.2% average that we are use to.
“The chances that we’re going to get back to the regime that we had in the previous 10 years, of very low, 2% type inflation, I think that is very unlikely.” Bolton said.
Bolton noted that China’s population decline is going to play a significant role in driving up prices, because the day of cheap labor are over.
Bolton also brought up something that I have been warning about for quite some time and that is that under the WEF’s plan for a Great Reset, prices are going to rise. Bolton claimed that the global push to decarbonize economies is likely going to contribute to higher inflation due to copper demand rising significantly, and copper being heavily used in renewable energy.
“I do think that the returns to frankly all asset classes are going to be lower,” Bolton said. He also warned that more volatility with the stock market is going to be the new normal.
For more on the Great Reset visit Mikulawire.com and click on the Great Reset tab at the top of the homepage. There you will find over 50 articles that I have written over the last 20 months on this topic.
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