Wednesday, 25 March 2009

Deflation, what deflation?

"The trifling economy of paper, as a cheaper medium, or its convenience for transmission, weighs nothing in opposition to the advantages of the precious metals... it is liable to be abused, has been, is, and forever will be abused, in every country in which it is permitted." --Thomas Jefferson

The government and the ever compliant “independent” media are softening us with weekly propaganda so we are supposed to feel grateful because they are trying everything they can think of to stop things getting cheaper, but there has been a slight mishap.

The rate of inflation just went up!

That’s right folks, deflation is the big concern apparently but, ooops, the CPI actually rose to 3.2%!

That’s above the 2% target, yet they’re taking measures like it’s already below.

Ah, but, they are so clever though. You see, they are fighting next year’s problem. They can predict what’s going to happen and - oh hang on. No they can’t. They failed to see the credit crunch didn’t they? In fact, thinking about it, it looks suspiciously like they don’t have a fucking clue.

So how can we trust them when they say that deflation is the real threat? The government is in a shit load of debt and, just as with individuals holding loans; inflation is a great way to crush the real terms value of that debt. Hey, I owe a 100,000 mortgage that I can't pay back but thanks to Gordon Brown, in 2010 100 grand will be the cost of a loaf of bread! You get the idea. Obviously savers will be wiped out, but hey, the Keynesians think savers are scum and it is credit that is the route to prosperity (just like a drug addict can be cured with more drugs, right?) so what the fuck, eh?

No comments:

Post a Comment