Forbes - Money supply growth in the UK running at 12.8% YoY

[Tsar Bomba]

This is the kind of economic madness that is killing the US economy.

When money supply grows faster than GDP, where does the money end up??

Mostly into the housing market

Money supply has been growing alarmingly in the UK for several years. Ever wondered why house prices have tripled in 10 years? This is why.

Monetary debasemant alive and well in the UK economy

[mkpdavies]

Also supply and demand has to come into play. Britain's population had stabalised, but is now on a steep upward curve.

[Tsar Bomba]

The supply and demand theory is a bit of a red herring I'm afraid

Yes, there is a shortage of housing

But it's the availability of cheap credit, oodles of money created out of thin air by the banking industry that has mainly fuelled house price inflation.

It will end.....just as it is in the USA right now

[mkpdavies]

Oh I don't disagree with that. It's just it will take longer here. Just look at the Japanese market for a closer comparison.

They have had crazy valuations for a long time now.

[Tsar Bomba]

The housing market in Japan has never recovered

Japan is a high density country with a dire shortage of property

This should be a warning to anyone who says we can't have a crash here