Tuesday 29 August 2006

Labour's Inflation Lie

http://www.statistics.gov.uk/articles/nojournal/CPI&RPI_basket_2006.pdf

I have some comments on the above for Mr Brown today. I hope he enjoyed his 3 week paid maternity leave and has also noticed how only MP's receive this. The rest of us mere mortals get one week plus one at £100 per week. Oh the joys of working in parliament!

This past year I have done well and received a handsome payrise of twice the rate of inflation. As such I should be feeling happy but instead I know I am poorer than before with less money left over every month.

A look at the CPI/RPI link above shows why. There is no mention of council tax or mortgage interest; yet these make up 35% of my monthly spend and pleaseshow me anyone who spends less than 25% on rent and council taxes and I will show you a millionaire!

Also household bills and telecoms make up 6% of the list. Yet I spend 20% on these a month, in particular I have seen gas and electric bills increase by 50% this year. This is a huge discrepancy; again where are all the people in the country who don't face these bills? Surely the under-20's and income-support army are not the vast majority in the country?

When I roughly factored in these changes my rate of inlfation comes out at 12%. And there is worse to come. For this year Mr. Brown has hugely increased the M4 money supply which will mean more inflation - more money in the system an it will lose its relativw value.

So overall we ar ein dark economic days which is not the spin coming from the treasury. I have thought about this and there are two obvious reasons, both of which the Tories should focus on in the next couple of months:

1 - The government is bending all the rules to demonstrate its economic credentials - yet these cheats can be exposed.

2 - The government needs an artificially low level of inflation to keep down pay settlements to allow for greater money supply to feed its vast spending projects at low interest rates; in effect a double tax on all of us earners hwo are suffering from higher inflation and lower wages at the same time.

I hope the opposition will take up this chalice

5 comments:

Unknown said...

"I hope the opposition will take up this chalice"

You must be new here ;-)

Seriously though, red and blue teams are as bad as each other. There is no way that the Tories will highlight something they themselves will want to make use of when they eventually do get back in (unless there is some *serious* political capital in it).

Inflation has been one of the greatest scams ever pulled on it's citizens by a state. They've managed to make people believe it is something inherent in the system that must be fought valiantly by the govt who all the while create it by diluting the money supply to their own benefit.

I really can't see any political party making too much noise about it unless it threatens to get out of control enough that even a dumbed-down and conditioned populace will begin to notice.

AntiCitizenOne said...

If you think this is bad then wait till you realise that the growth in the economy has been less than the growth in debt.

i.e. the economy has shrunk.

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