Mugabe, Economics and Whitehall

Just what is happening in the world today? We have a Prime Minister who seems to be oblivious to the fact the problems the country faces were actively encouraged by his government (not that I believe any of the others would have done anything differently). Then in the Guardian we have a "respected" economist, if that isn't a contradiction in terms, telling us here that the only way to prevent deflation is for the Bank of England to give the Government an overdraft.

There are a couple of very worrying comments in the piece, none less than his comment that implies that the British Government may default on it's commitments. to paraphrase the sentence, he says that future taxpayers MAY have to repay the Bondholders, but "It may never happen". So is this an implicit acceptance that the Bondholders may not get paid? It would appear to me that it is. So first the banks screw us, then they screw the country

Brilliant, in the last 20 years, we've changed our Inflation measure out of all recognition, ignoring the Council Tax, the Mortgage Costs and the Utility Costs, Water, Electricity and Gas which between them for a dominant proportion of the spending within a household. The result of that was "low" inflation, until it couldn't be disguised any longer because of huge commodity price increases. I remember, as a lad, the Daily Express having a cartoonist called Cummings, who, in the 1960's featured a "Mr Rising Price", accusing the governments of the time of hiding the true level of inflation. Perhaps the wholesale printing of money will allow the ghost of "Mr Rising Price" to rise (sic) agian, only this time as a super hero, because that's where we are headed, hyperinflation.

If you have anything that has intrinsic value, look after it and don't trust the paper that money is printed on