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Inflation rises "unexpectedly". Well duh.

Inflation rises unexpectedly | Reuters.

In what possible universe was inflation not "expected" to increase? Are we naieve enough to think that the economic gods would not notice the printing of money unbacked by value? Or that they are so stupid as to be fooled by the euphemism "Quantitative Easing?"

Admittedly the rating agencies seem to have been fooled so far, but the invisible hand tends to put its finger on the truth rather sooner than them.

Or perhaps we simply assert, with Merkel-like arrogance, the primacy of politics over economics?


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Nigel Sedgwick

When the government prints money, those that benefit most are (not surprisingly) the government.

The rest is indirect. sometimes to the extent that it is irrelevant. On this, bear in mind the downside of printing money (devaluation) as well as the upside (a stimulus to activity - though not necessarily economically beneficial activity).

And the advertising of those indirect effects is, again not surprisingly, adversing in support of the advertiser and his/her agenda.

Best regards


Quantitative easing is the creation of new money or "printing money". This will increase the total money supply in circulation. Those who benefit most will be those who receive this new money first. They are the banks, and then borrowers. This new money will cause prices to rise. Wages tend to be slow to adjust to price rises. In the short term, savers and everyone who is not a borrower will find their real disposable income reduces. In the longer term, the government will find that more and more Q.E. is needed in to keep our debt-based fractional reserve monetary system running. The end-result is Weimar-republic or Zimbabwe style hyper-inflation. Whether or not the Bank of England dress it up as buying corporate bonds or whatever, the truth is that it is effectively the same as printing money. In an ideal world we would have a full reserve banking system based on a gold standard, and the money supply would be fixed. This would bring an end to debt-enslavement and banking greed, which is the other side of the same coin.


I expect the London figures will go back down after all the satff taken on for the olympics have their contracts run out, I guess after the para-olympics.

That is probably why they were keen to give G4S the benefit of the doubt, right past where they ought to have.


Inflation is the aim. The "unexpectedly" part is a story for public consumption. Also see the proud announcements of falling unemployment. The government think they are being really clever.

For example from the Independent:

"Unemployment has fallen to its lowest level for a year after a big jump in the number of people in work, especially in London, suggesting a jobs boost because of the Olympic Games.

The jobless total fell by 46,000 in the quarter to June to 2.56 million, a trend seen for the past few months.

The number claiming jobseeker's allowance last month was 1.59 million, down by 5,900 on June, while almost 30 million people were in work, up by 201,000.

Most of the quarterly fall in unemployment was recorded in the capital which has just hosted the Olympics and is gearing up for the Paralympics in two weeks' time.

The Government welcomed the news, saying private firms are creating jobs despite difficult economic times.

Analysts said the figures are "almost impossible" to explain, while union leaders warned that dole queues could start rising again."

Their stupidity would be pathetic and even funny if it wasn't so dangerous


Well you can tell people stuff like two and two making five and they will believe it because they want to and because they "don't do maths". But when the numbers are crunched by reality...

I wonder what putting up rail fairs by (on average - they claim) twice the rate of inflation with do to the... er, rate of inflation? Will they have to put up rail fairs by twice the rate of inclation to allow for it? I guess they will in the end so maybe not so ^_^

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