The UK economy may have slowed to a crawl, but inflation is a problem that just won't go away.
The output price index for home sales of manufactured products rose 3.9 per cent in the year to November. If the essentials of life are excluded - Food, Beveridges, Tobacco and Petroleum (FBT &P) - the rate of output inflation declines slightly.
Do you think that the Bank of England actually care about inflation anymore?
4 comments:
Yes they care about inflation, they are trying to inflate away part of our debts.
Its intentional.. Its a scam.
Inflation: The Silent Tax:
http://www.gold-eagle.com/editorials_04/benson061804.html
Which is why RPI Index Linked Savings Certificates are no longer available to the general public from NS&I and why The Bank of England Pension Fund is reported to be heavily moved into index linked Govt bonds.
A David
I used to think that a dose of inflation would be what the powers that be wanted to devalue all their debt. But it occurs to me that method only works if wages go up in line with inflation, so tax revenues rise also. If the economy (and wages) stay stagnant, and the inflation is imposed from abroad by higher prices for commodities, then you get a double whammy - the govt has higher costs (unionised public sector will demand higher wages more than the private sector can) but no more revenue from the private sector to pay for it, or to finance the debt.
I think we are heading for higher inflation yes, but our debts will not be eroded by it as our incomes will not rise to match. It is the way that we will be forced to recognise that we are not as wealthy as we thought, riding along on the crest of a wave of debt as we were. Everyone will become poorer.
It was posts like this that I missed when you disappeared, Alice.
So where did you go?
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