The Wholesale Price Index has been in double digits for almost a year and has just skyrocketed to a horrendous 14.5%. Tighten your belts. We are heading for the worst inflation in a long time. This will hit purchasing power, economic growth and the stock markets. Interest rates will soar, with especially damaging effects on interest-sensitive sectors like housing, consumer durables and renewable energy. Just as banks thought they had finally cleaned up their books and could resume big lending, a new wave of loan defaults is nigh.

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