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Tuesday, 18 January 2011

When did deflation stop being the worry?

I have been banging on about inflation being the coming concern for many many months, whilst for a very long time the official line was that deflation was the worry. Last April I blogged that:
'I predicted that Gordon Brown's panic policy of quantitative easing would lead to inflation and I was right. Gordon Brown and Alistair Darling, assisted by the pro-Labour BBC, pushed the idea that deflation was the real worry; I think we all know that was complete crap. Here are the inflation rates of our current economic peers - USA 1.1%, Germany 1.2%, France 1.7%, Italy 1.4%, Spain 1.5% and here's the rate of a country that will soon be our peer if Gordon Brown's reign of incompetence is not ended on 6 May - Zimbabwe around 200,000,000%

Gordon Brown calculated that by creating fake prosperity based on property prices and other debt he could ensure his hold on power. The system crashed before he could hold an election and so he used quantatative easing to artificially boost the economy by pushing a fear of deflation. What excuse will he use for the next bout of bank note printing?

If George Osborne, David Cameron and Ken Clarke cannot tear Gordon Brown apart over this then they do not deserve to win the election. '

Last September I blogged that:
'For months we have been told that the problem facing the UK nad much of the world was 1990s Japanese style deflation. Today with the news that 'UK Consumer Prices Index (CPI) inflation remained unchanged in August at 3.1%' even the BBC seemingly manage to realise that the problem is inflation not deflation.

Governments printing money to get out of a problem leads to inflation every time and this time will be no different. Don't say you weren't warned... '
It is odd that the MSM have finally cottoned on the inflation being on the rise, why so late though?

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