In this episode, Hazel delves into the pressing economic challenges many are facing today, particularly the impact of high inflation and rising costs of living. With a focus on the financial squeeze experienced by individuals and families, the discussion highlights the significant devaluation of currencies and the soaring prices of essential goods and services. Hazel also explores the paradox of large corporations, especially energy companies, reporting substantial profits while consumers struggle. Hazel encourages awareness and informed decision-making to navigate these turbulent times effectively, setting the stage for a follow-up episode on house price inflation and its relation to the broader economy.

KEY TAKEAWAYS

• Inflation has significantly decreased the purchasing power of currencies, with the UK pound losing about 20-25% of its value over the last four years.
• While inflation can erode the real value of debt, making it easier for borrowers to manage their loans, the overall economic environment remains challenging due to rising costs and interest rates.
• Central banks may resort to quantitative easing to stimulate the economy by increasing the money supply. However, this practice can lead to currency devaluation.
• The UK's national debt is currently equivalent to its GDP, which is a concerning statistic. Comparatively, other countries like the US and Japan have even higher debt-to-GDP ratios.
• Interest rates have been rising rapidly, creating a cyclical effect where governments must refinance their debt. This cycle can impact personal finances, especially for those with mortgages or investment properties.

BEST MOMENTS

"There has definitely been a massive tightening of belts that's had to be done over the last few years."

"Not only has your pound gone down in value, things have become more expensive by X amount."

"The UK currently, compared to its gross domestic product, is a hundred percent in debt. I mean, that's insane."

"Quantitative easing... is literally plucking money out of the air out of the ether; it's not backed by anything."

"We need to really take stock and think: are our house prices being artificially inflated?"

VALUABLE RESOURCES

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ABOUT THE HOST

Having started her career as a professional, classical musician, Hazel de Kloe also had a personal quest to become financially free. 

She and her husband built a successful, multi-million-pound property business, next to their own careers, but soon realised that true freedom doesn’t JUST come from being financially independent…

Having meant so much to her family, it has been her passion ever since, to inspire, educate and empower others on their journeys towards this 'Holy Grail'. 

During one particular property mentoring session back in 2009, she had a powerful recognition of exactly how to facilitate this. Nicknamed now, The Wealth Whisperer, she has a unique way of getting to the crux of what is needed to help fulfil this quest.