How should people prepare their money for what’s coming down the pike?

 Thu 2:52 pm +00:00, 3 Sep 2026  

posted by Tapestry

UK government wants to grow the economy with government spending. Neo-Keynsians ignore the effect of expanding government debts. Interest rates move in long term cycles. The low was 2020 and since then interest rates are rising. Long term interest rates could rise from 5 (4.7%) to more than 7%.

Inflation is rising to maybe 12% as the cost of living rises. Tariffs drive up prices. Wars drive up prices.

If the stock market crashes this could have a deflationary effect. The stock maket was small in the 1970s at about 30% of the GDP economy of the US. It is now 300% GDP worldwide. (USA lower)

Government Debt to GDP declined after WW2 to the 1970s. After Reagan, debt to GDP has grown to about 300% of GDP today.

All roads lead to financial crisis. The shock has begun already. AI stocks peaked in May. It’s now September.

Symptoms of inflation – rising stocks make people happy. Rising supermarket prices make people unhappy.

Agricultural commodities and oil are cheap relative to gold.
In Zimbabwe everyone is a billionaire.
Bank deposits could lose all your wealth in a year.

Diversify. Don’t leverage too much.
AI boom will be like the railroads and the canals. Few will survive. Technology changes very rapidly.
Bonds? Cash? Marc keeps some.
How long have we got till the dam of debt and stock markets rise/fall with shocking speed? No one knows.
But Trump and Bessent seem dumb enough to push the world into crisis.

For John Redwood’s explanation about government debt – https://englandcalling.co.uk/blog/2026/09/what-kind-ofeconomy-is-on-its-way