The Bank Of England's Solution To The Recession? Stagflation.

With the latest inflation figures showing yet again price rises are a continuing problem at a savings destroying 3.5%, in direct contradiction to all the deflation hysteria, it’s time to pause and take stock of the historical data.

It exposes so thoroughly the level of propaganda that masquerades as news in our mass media it’s quite frightening.

Mass media/Bank of England claim:

The credit crunch means falling prices are a greater possibility than rising prices. That could lead to a deflationary spiral so monetary policy must be extremely loose bla bla bla bullshit bullshit bla bla.

Really? Let’s have a look at the average inflation figures (Consumer Price Index) 1997 – 2009:

1997 1.8
1998 1.6
1999 1.3
2000 0.8
2001 1.2
2002 1.3
2003 1.4
2004 1.3
2005 2.1
2006 2.3
2007 2.3
2008 3.6
2009 2.2

If you had to play “spot the deflation”, what year would you pick?

Oh dear. Doesn’t the “deflationary” 2008 – 2009 period have inflation comfortably above the Bank of England’s 2% target? For that matter, also notice that post 2004 it looks suspiciously like the 2% target has become a floor, i.e. it looks like they are aiming for a minimum of 2% inflation after 2004. With an asset bubble booming out of control during that decade, to err on the upside of the inflation target is absolutely inexcusable. If the Bank of England had had any balls, it would have raised interest rates to reign in the property boom, and if that meant inflation falling well below 2%, so be it. After all, their only punishment for missing the CPI target is to write an explanatory letter, isn’t it? What a brilliant contract of employment!

Dear Chancellor of the Exchequer,

I didn’t do my job properly again this year, so as required, I am writing to tell you. Thanks and glad that’s all I need to do. Here’s to many more years of getting paid a fucking fortune to be shit.

Yours,

The Governor of the Bank of England.


But I digress.

Examining the monthly figures, which is what the monetary policy committee will take into consideration when deciding the level of interest rates (or now, god help us, also whether to print more money) at their monthly meetings:

2007 CPI at or above 2% target in 9 of the months
2008 CPI at or above 2% target in 12 of the months
2009 CPI at or above 2% target in 7 of the months

And for the 4 years 2006 – 2009:

CPI below 1% never

Where’s the fucking deflation?

Here you go, I’m getting my squeegee out and I’m rinsing my eyes real good, but every time I look I’m sorry, I just see plenty of inflation.

What fucking data are these supercilious Oxbridge cunts at the Bank of England looking at?? Have they got the right country?

Stop eroding my savings and stealing my wages you thieving fuckheads!