Saturday, 4 December 2010

Bank Of England Chief Economist Spencer Dale just keeps on lying

So, inflation has been above target, is above target and will continue to be above target.

Conclusion? Well, if you're the Bank of England's Chief Economist, Spencer Dale, clearly the The Bank has not "gone soft" on inflation, in a recent speech at the Kent Business school:

"My single most important message is that the Monetary Policy Committee remains as hard-nosed as ever in its determination to hit the inflation target."

How stupid do you think we are, you parasitic, thieving, lying sack of shit.

The speech is basically a repeat of his presentation to the Cardiff Business School from this September, and I'm sure the same speech will need to be used, word for word, for many years to come.  "Many years", in the Orwellian world of the ruling elites, being a period of time that can be defined as "temporary", apparently.

With inflation above target for so long, they keep trotting out the same old excuses.   Let's have a look, shall we?

Excuse:  The fall in the pound has led to higher import prices and this has caused upward pressure on inflation.

Problem: This is a big, if not the biggest excuse they keep wheeling out:. But...the pound has fallen because of the base rate dropping to 0.5% and being left there.  Oh, who sets interest rates? Ooops, The Bank Of England of Course!

Conclusion: The Bank is responsible for the exchange rate depreciation and therefore responsible for the impact on prices.  So to try and explain this as an unanticipated external shock is utter bollocks.

Excuse: Spare capacity means inflationary pressure is low. If anything, falling prices remain a dangerous possibility.

Problem: "spare capacity"  is a Keynesian myth.  It can't even be measured. Recessions hit "higher order", capital intensive industries hardest. The "lower order" consumer goods sector can quite easily fail to feel the same or indeed any pressure to lower prices.  Of course, the Keynesian blunder is to lump millions of different economic agents into one amorphous "aggregate" and pretend it can be controlled all at once (always by a superior technocratic governing elite who know better than us ignorant proles of course).

Conclusion: Spare capacity cannot be accurately measured, controlled, or considered as a reliable bulwark against inflation. And even if you don't agree, the inflation figures speak for themselves: we have had CPI inflation consistently higher than during periods of the boom, in the depths of an economic slump.

And then there's the 200 billion of newly created money ("Quantitative Easing"), the inflationary effects of which, funnily enough, The Bank of England doesn't want to be part of the discussion.

Let's cut to the chase shall we? In close coordination with the British Government, The Bank is deliberately attempting to inflate the UK out of its problems. The missing of the inflation target is no accident. So why the speeches trying to convince us that The Bank is serious about keeping inflation on target when the evidence is so overwhelming to the contrary? Well, that's because they are terrified of a "wage-price spiral" whereby the working populace realises the scam that is in place (they are in fact always getting poorer because prices are being pushed ever higher) and so push for higher wages. Since wages are a cost too (from an employers perspective), this feeds into the price of goods which go higher...and so on. The Bank would prefer to steal from us through high inflation to bail out the bankrupt fractional reserve banking system and the bankrupt government, yet they also want people to not push for higher wages when they see that everything is ever more expensive. In other words, they want to have their cake and eat it. Hence the ongoing propaganda campaign: "Oh, er, no this above target inflation is TEMPORARY so no need to push for a pay rise or anything, OK? Please?". Trouble is, you might get away with that for a few months. But 4 years?

I repeat: how stupid do they think we are???
I'll leave you with the very end of Dale's September speech, because it's the one part of it that is actually true (albeit unintentionally):

"....the objectives of policy will be clear and unchanging: inflation, inflation, inflation. "