Tuesday 17 May 2011
UK CPI Inflation on track with rise to 4.5%
Luckily for the Bank this is just about in the tolerance zone for the ridiculous chart they publish above (if you look it at any one point i only 'predicts' inflation to within a 4% band).
For how long though will the UK carry on in its path of debt inflation. Clearly the Bank of England has not a clue, if you look back at these charts to a year ago they were expecting inflation to be down to under 2% by now. It was nonsense then and is nonsense now, inflation is going nowhere but higher unless the commodity collapse continues and fiscal stimulus is withdrawn worldwide.
The UK Government will be happy though, the national debt is being inflated away along with its citizens wealth. It is a sad wight to see a Government betray its own people in this way, but then with so many against the 'cuts' in the UK perhaps this is the only palatable way of delivering them. If you are a saver or have any valuables at all though you really by now should be fully stocked with non-UK assets, preferably not even Sterling denominated assets - Why?
Because either this will work and that will be the only way you can maintain your relative real wealth, or this still does not work and we have another financial crisis that ends in a massive domestic wage spiral and 1970's style 20% inflation.