November 17th, 2009

Yo Dude, Where’s the Deflation?

Guido was more than sceptical when politicians and Labour luvvie economists like Gavyn Davies started talking up the bogeyman of deflation at the same time as the government was running up massive fiscal deficits.  It seemed too handy a coincidence that they would print money on a scale never seen before at the same time as issuing debt on a scale never seen before.  They subsequently, coincidentally, bought the debt using the money they had just printed.

This we were told was to stave off deflation which it was emphasised was very bad.  Goods becoming less expensive was somehow worse than goods becoming more expensive.  If we got deflation it would be the end of the good times for ever according to even monetarist economists.  Guido was sceptical that deflation was necessarily bad, history shows that there have been times of increasing prosperity that coincided with deflation.  Deflation happened several times in the nineteenth century.  During that era of rapid economic development there were no central banks and money was calculated as a certain quantity of gold or silver.

Deflation was not necessarily a threat to our prosperity, in a situation where the money supply is stable it is the manifestation of prosperity and pensioners know that their standard of living would have improved.  With inflation now upticking this experiment in Mugabenomics* has to be reversed without setting off hyper-inflation or collapsing the government debt market.  The policy authorities have figured out how to prop up the gilt market – they are changing the regulations to force banks to buy government debt to the tune of hundreds of billions. It remains to be seen if they can avoid an inflationary catastrophe, surging record gold prices suggest the markets suspect not…

*©Vince Cable, who was against QE before he was in favour of it.  God knows what he thinks now.


  1. 1
    Bubbles Lamnot says:

    Havn’t a clue what you’re talking about.

  2. 2
    Broon v Obama Speling Bee contest (he makes Bush look intelligent) says:

    nor has gordon, alistair, ed etc
    that’s the problem

  3. 3
    Jee Brown, A Dahling, Peeman Delson says:

    I know, let’s raise interest rates to keep inflation in check. Then in 5 years time we can blame the tories for it all

  4. 4
    cuntinental europe says:

    economic ineptitude = Labour

  5. 5
    Whizzzzz! says:

    Oh to be able deflate the whole of the cabinet – like a big balloon whizzing across the London skyline!

  6. 6
    James says:

    Liam Halligan has been banging on about this for months

    You know he was talking sense as the political and banking establishment called him “bonkers”

    Print money, you get inflation, not that difficult to understand, surely.

  7. 7
    christy says:

    You say rapid economic growth in your article,and pray tell just how will we achieve this.
    Our industries are at rock bottom or have been sold off to johnny foreigner,we import more than we export.
    Public service spending is out of control,we are borrowing as though there is no tomorrow.
    Can’t see where the growth is.

  8. 8
    SO17 says:

    I missed the gold boat so invested in a compound bow with 150Ib pull.

  9. 9
    The IMF is coming says:

    Inflation is the plan

  10. 10
    Steve Expat says:

    Basic economic theory says that if you print money you get inflation. More money around to buy the same amount of goods (and other currencies) means that they become more valuable – assuming this new money is in the hands of those able and willing to spend it.

    The govt have tried to be sneaky by just printing it and giving it to the banks, who are holding onto it rather than lending it – ergo no inflation, and why Darling’s not beating the banks around too much over their refusal to lend money.

    It’s all about to come crashing down like a house of cards though, as almost every economist has predicted for the last two years – as Guido says the Gold price alone is an idea of how unstable things are at the moment, people put their money in commodities when they’re not sure about the safety of putting it in the banks!!

  11. 11
    Lizzie says:

    Guido, let’s face it , Britain is in deep economic s**t, whichever way you look at it, we are McDoomed, welcome to Brown’s Broken Britain, this is the one he promised us when he walked into Downing Street isn’t it.

  12. 12
    Steve Expat says:

    Maybe not for you or I (or most of those reading this blog).

    For Broon and Darling, however…

  13. 13
    Call me Infidel says:

    Sadly this is likely to be the result. Deflation is bad, just ask the Japanese, but rampant inflation is a damn site worse. Those of us who lived through the 70’s with Labour’s last inept attempt at running a country can testify to that. I fear they have now become addicted to all the free money that they keep printing and when they decide to switch it off it is going to get ugly.

  14. 14
    Lizzie says:

    In Gordon’s girth.

  15. 15
    Susie says:

    To all sane people yes… we’ve had economists telling a chancellor (who believed he’d abolished boom and bust, saved the world, lived in economic la-la-land) what he wanted to hear — the sooner the markets rectify the situation by rubbing Brown and Darling’s noses in their dog’s breakfast the better IMV.

  16. 16
    Steve Expat says:

    Indeed – the more (and more quickly) that the 1.5 TRILLION national debt can be reduced by inflation, the less goverment spending on Labour’s voters has to fall in order to pay it off!

    There are only two things stopping the IMF knocking on the door now. One is that they are not sure they have enough reserves to bail us out, the other is that they hope the British people will take the hint and vote out this bunch of incompatent morons when the opportunity is given to us!.

  17. 17
    cuntinental europe says:

    what do Labour care? the future problems will be a stick to beat the Tories with.

    Scorched Earth wankers.

  18. 18
    E Dwin-Balls says:

    I missed the gold boat too, but so what, who cares I’m an MP.

  19. 19
    Lizzie says:

    Brown will want his face on the money soon he is printing so much of the stuff. He probably also has plans to put himself on the empty fourth plinth as the greatest Prime Minister Britain has ever seen. These are worrying times, Brown is very unbalanced it would seem, what sort of van should we book send to Downing Street at the end, a removal van or an ambulance with men in white coats.

  20. 20
    Susie says:

    They will never decide to switch it off — that poisoned chalice will be left to the Conservatives or with a hung Parliament, the IMF.

    They’ve left hundreds of economic IEDs for whoever has the misfortune to govern the country for the next 15 years.

  21. 21
    Weimar says:

    Makes me glad I piled into gold four years ago.

  22. 22
    Ed says:

    Good post Guido!

    Brown’s reckless economic policies will prove disastrous for this country starting as soon as next year, when sterling gets hit even more and the gilts market fails.

    We are heading for stagflation but worse than that seen in the seventies as, this time, wages will be going down, not up.

    Tighten your belts. Living standards in the UK are going down and we face years of penury to pay for Brown’s criminal destruction of the nation’s finances.

  23. 23
    Master Baiter says:

    Ecomonics is not Guidiot the Oaf’s strong suit.

  24. 24

    It’s all going to Plan, Westmonster, the EU and the Globalists are at war with us, you cannot have control over people who are wealthy and Independant, we are being brought to our Knees.

    Oh, and the Bank of England is a Private Company, that’s right, we don’t coin our own money, we borrow these Worhtless bits fo paper, at interest from Offshore Corporations.
    If we coined it ourselves as a Sovereign nation, there would be no public borrowing, no debt and hence absolutely no need for Income tax.

    Let me Restate that, if we had coined/printed the same amount of money as we had borrowed over the Past 50 to 100 yrs, our National debt would ZERO.

    Incidentally, this proves beyind doubt that Parlaiment is a Charade, they are all working for the Internationmal Banksters.

  25. 25
    Anonymous says:

    I’m still looking for those things that are meant to have come down in price!

  26. 26
    Master Baiter says:

    Inflation makes your debts smaller.
    Deflation makes your debts bigger.

  27. 27
    The Inquisition says:

    Labour = utter shit

  28. 28
    Master Baiter says:

    Economics is not Guidot the Big Oaf’s strong suit.

  29. 29
    Al says:

    The total debt in the UK amounts to over £2.2 trillion, consisting of £1.4 trillion private debt and £8 billion public debt. This is by the far the greatest debt to GDP in the whole of the industrialised world.

    Unfortunately the situation, particularly with regard to public debt, is worsening massively every day as Brown employs a scorched earth policy up to the next election.

  30. 30
    Master Baiter says:

    Knees must and all that.

  31. 31
    gordonbyebye says:

    The only thing deflated are wages pensions and benefits and trackers for those lucky enough to have them
    Devalue the pound by 25% you import inflation. Give it another six months.

  32. 32
    The Inquisition says:

    Well done. Do you want a lolly?

  33. 33
    Santa(brought to you by strong prescription drugs) Claws says:

    Ho Ho Ho. What would you like for christmas little boy? Let me guess, a fucking good hiding. SLAP!!

  34. 34
    Master Baiter says:

    Deflation is worse than inflation, but sometimes both are possible.

    It’s a global crisis and it started in America.

    That’s why the US federal government controls the banks and the car companies, isn’t it?

  35. 35
    The Inquisition says:

    Or Gordon Brown’s unfortunately or we wouldn’t be in this fcking mess.

  36. 36
    GH says:

    Inflation is not some sort of easy way out, particularly in a country like ours so dependant on imports. Inflation in Britain will quickly become stagflation and will devastate what’s left of the economy.

    The social costs will be immense and could lead to an extremist government. Balkanised Britain could not cope with economic collapse.

  37. 37
    George Osborne says:

    Phillip Hammond told me to say that QE (quantitative easing) is a good idea, we should support it and it’s working.

    So there you are, Cameron agrees too.

    Print money!

  38. 38
    jgm2 says:

    Ecomonics is not Guidiot the Oaf’s strong suit.

    To be fair it certainly ain’t the Maximum Imbecile’s strong suit. In fact amongst all his many weak suits – his weakest suit is economics. Or possibly sanity. It’s either economics or sanity. Or honesty.

    It’s either economics or sanity or honesty.

    Or Courage.

    Or Integrity.

    Or Spelling.

    etc etc.

  39. 39
    QE is just postponing the problem.. says:

    Inflation makes savings smaller.
    Deflation makes savings bigger. (sic)

  40. 40
    George Osborne says:

    QE is ok.

  41. 41
    RestandBthankful says:

    I see Andrew Fentiman’s blog has disappeared rather rapidly. He wrote about not having the right kit. However it is still available via Google cache:

    So much for our brave soldiers being given the correct equipment.

  42. 42
    GH says:

    Inflation wipes out savings and reduces the value of your currency, and if you impost most of your food and fuel it meams they cost a lot more.

    In broke Britain inflation would become stagflation.

  43. 43
    Brown - Financial Genius ?? says:

    The worry is of course that Brown has got almost every major decision on the economy wrong over the last 12 years and especially during his time in The Treasury. The seeds of the UK’s worst recession since the Great Depression were sown in the heady days of 1997 when Brown encouraged the loosening of fiscal control by the banks and put in place a lax control system. It suited him to encourage the Banks to go on a lending splurge and to encourage consumer borrowing which gave rise to a buoyant and rising housing market with the resultant feel-good factor(everyone’s a “millionaire” now syndrome).He also encouraged people to spend spend spend on credit and to run up massive personal debts on credit cards to fuel a “celebrity life-style” that neither the consumers or the country could afford(let’s face it if you’re on a check-out girls wages how the hell can you realistically hope to live the “Posh & Becks” lifestyle ? On your credit card of course- easy !). It enabled Brown to throw billions at the public services for really very little gain in improvements.The majority of monies thrown at the NHSl went on wages .

    Ultimately the bubble was always going to burst and just like the day after the party everyone awoke with a massive headache. The problem may well have started in America and was further exarcerbated by Hank Poulson’s stupid and reckless decision to let Lehmann Brothers fail which brought down the whole house of cards but Brown had ensured that the UK had no real defences against the deluge when it came.

  44. 44
    Master Baiter says:

    A lot of lolly, please.

  45. 45
    Australian says:

    Seems to be something you are more than a little misinformed about as well, Jonty.


  46. 46
    jgm2 says:


    It started in Fife.

    How did Australia and China’s recession work out? Globally speaking?

  47. 47
    DCB says:

    Deflation is deadly when you have an over-geared economy, like the one we currently have, as the real cost of debt explodes and credit write offs multiply. As the government underwrites the banking system deflation would impact on our soverign rating.

  48. 48
    get with the program says:

    he’s not running the country though….

  49. 49
    Sue Tzuzir says:

    Or spelling yours MB.

  50. 50
    jgm2 says:

    Ecomonics is not Guidiot the Big Oaf’s strong suit.

    To be fair it certainly ain’t the Maximum Imbecile’s strong suit. In fact amongst all his many weak suits – his weakest suit is economics. Or possibly sanity. It’s either economics or sanity. Or honesty.

    It’s either economics or sanity or honesty.

    Or Courage.

    Or Integrity.

    Or Spelling.

    etc etc.

  51. 51
    Al says:

    The Tories think QE has gone too far already. The only reason the UK hasn’t had it’s credit rating downgraded and why the gilts market and the pound haven’t crashed is because the financial markets expect a landslide Tory victory next year.

    It’s only that prospect that is holding up sterling and allowing the Bank of England to print money.

  52. 52
    The Inquisition says:

    It started in Scotland, as well you know.
    Royal Bank of Scotland
    Halifax Bank of Scotland
    Gordon Brown etc


  53. 53
    Australian says:

    Wow, that’s 3 stunningly incorrect statements in 3 sentences. You really are excelling today, Jonty.


  54. 54
    Master Baiter says:

    The young prefer inflation to delfation.

    Something about the cost of mortgages shrinking.

    The old die sooner and with worthless savings sooner still.

  55. 55
    Dave "Cast Iron Guarantee" Cameron says:

    Listen the Conservative economic policy is very simple


    We can’t think of anything else

  56. 56
    Gordon Brown says:

    I’ll print you some now chum. It’ll be worth fuck all though this time next year so spend it fast eh?

  57. 57
    Master Baiter says:

    Why would someone admit to being Australian?

  58. 58
    jgm2 says:

    Fucking idiot Americans bailing out their shit car companies. We tried that. It doesn’t work. The wankers just get used to producing any old shit and their loyal customers buying it plus going out on strike when they fancy a few more days holiday/bit more cash/whatever.

    It’s too bad they didn’t learn from the UK’s experience.

    Mind you, it’s too bad Brown didn’t learn from the UK’s experience instead of a complete reprise of the 1980’s/1990’s housing boom and bust.

    The fucking imbecile.

  59. 59
    Gordon Brown says:

    Trebles all round! Another success for socialism! It’s the right thing to do.

  60. 60
    Grumpy Old Man says:

    The environmental dept. of the City of Westminster Council should be able to provide something suitable.

  61. 61
    Australian says:

    Agreed, GH. Are you however meaning to suggest that we don’t already have an extremist government already? Seems to me that McRuin & Co already tick all the boxes when it comes to fitting the description of a particularly nasty strain of fascist dictatorship.

  62. 62
    jgm2 says:

    It’s a start.

    And that’s better than the ‘print any amount’ party opposite.

  63. 63
    Australian says:

    Too many “alreadys”. Sorry!

  64. 64
    resurgemus says:

    the old own all the houses so their assets also increase

    the young can save fast enough for a deposit so inflation is their enemy

    looks like you won’t be getting a house then

  65. 65
    jgm2 says:

    Because they (Australia) didn’t have a ‘global’ recession because their PM isn’t a totally fucking incompetent jackass?

  66. 66
    Australian says:

    You won’t be so happy when McBust confiscates your gold and makes it a criminal offence to hold gold. That will be his next step (immediately after introducing draconian exchange controls).

  67. 67
    Master Baiter says:

    Not so, the market called them on that and they went bleating and apologising, honest. If not, please (pretty please) find a recent quote of the Conservitude lickspittles condemning QE.
    Go on put ‘em up, put ‘em up!

    For example:
    “What has got Britain through the recession so far has been the activist monetary policy at the Bank of England, keeping interest rates low, supporting the economy through quantitative easing,” Hammond said.

    Hahahahaha, Haha and another Ha!

  68. 68
    Pumping for England says:

    We are facing 3 major over-inflated issues: General Gordon’s pill-driven ego trip and that hideous Katie Price/Jordan’s fake chest. Prick and fall come to mind.

  69. 69
    George Osborne says:

    If a Conservative government is elected we will increase taxes.

    That’s a stainless steel certainty.

  70. 70
    foosurvey says:

    Deindustrialisation and neo-serfdom. That’s the plan. We’ll get to grow turnips and when we’re not in the fields, if we are good, we can watch the X Factor.

  71. 71
    thick as thieves says:

    right, top boy will explain the deal on this economics shit.
    okay, so if you imagine that steve expat and masterbaiter are gay lovers. it’s not difficult, is it? anyway, also imagine that they are crackheads and prostitutes.
    right, so steve and MB go to their crackdealer to buy some crack but they have no money, so the crackdealer says “right bitches your skanky asses are mine now go out and sell your ass to pay me for the crack”.
    so steve expat and masterbaiter go out on the streets and they suck and do anal for cash and when they have earned enough money (I know, this part is a bit unbelievable, who the fuck would pay steve and masterbaiter to fuck them? no-one) anyway, they come back and pay the pimp for the crack they smoked.
    and then steve expat and masterbaiter start clucking and need more crackcocaine but their dealer tricks them and instead of giving them crack he gets them hooked on heroin and that is when everything went terribly wrong for them but they probably deserve all their bad luck because they are a pair of wankers.
    but on the upside, steve expat and masterbaiter are getting clean and making progress from their addiction: as part of their withdrawal therapy they often come here to help them hammer out all their delusions and strange belief systems on the keyboard and in a safe environment.
    they are harmless and can just sit in the corner ranting: no-body takes offence from the things they say because everyone knows they are just a pair of fucking jokers.
    but they are still in love!
    nice to have a happy ending for a change innit.

  72. 72
    Number 7 says:

    Scotched Earth – Get it right

  73. 73
    Master Baiter says:



  74. 74
    Pen carrier to the master one says:

    So having saved the world economy, now we are to close down the vote-losing Afgan War before the election… What a genius. “The Thick of it” – eat your heart out!

  75. 75
    Master Baiter says:

    unacceptably long

  76. 76
    Jock MacScrottum says:

    If the Tories had any sense they would make sure they lose the election by a very small margin and let Labour sort out their own fuck up.
    Their first cost cutting budget( forced by IMF) would see them implode and all the shit firmly stuck on them.

  77. 77
    jgm2 says:

    Indeed – here is what the man from Fitch had to say…

    In a statement, David Riley, Fitch’s co-head of global sovereign ratings, said the U.K.’s current stable rating outlook “reflected our expectation that the U.K. government will articulate a stronger fiscal consolidation program next year.”

    There is no grey area there. Just as when one countries ambassador writes to another ‘we are concerned…’ it really means ‘we are going to nuke you…’

    Now this is as explicit a statement that diplomacy allows to say ‘If you re-elect those imbeciles in Labour then we will downgrade you’

  78. 78

    Inflation is ‘good’

    But this is better

  79. 79
    Ed Balls says:

    Can I have some more money please?

    We haven’t been able to get to Waitrose this week and we can’t scam it through Allowances anymore.

  80. 80
    Australian says:

    From MB (imbecile):

    “Why would someone admit to being Australian?”

    You trying to tell us you are a racist then J0nty? better get your mates in the Labour Party Thought Police to come and arrest you.

    By the way, in case you hadn’t noticed, following 12 years of careful, economically conservative administration, Australia has continued on its path of steady, well-managed economic growth. The present ALP government has money to throw around because (unlike your pathetic hero McBust) the previous Australian government did not spend money it didn’t have.

    To throw your own question back at you, why do you admit to being an apologist for an economically inept, untruthful, nation-destroying, corrupt, idiotic scumbag from Fife?

  81. 81
    Postal Vote says:

    Spot on Guido

    A few other thoughts on this:

    -BoE pension scheme sticks to index linkers; now what is that telling you?

    -Debt is going up as UK is definitely past its own peak oil (and coal) and does not have that much of a natural hedge when commdodities go up.

    -Consumer electronics companies have demonstrated that you can thrive in when the prices of your products are going down and your customers expect tem to continue to do so.

    -Davies owns/runs a fund management co and should state whether he is long/short gilts and sterling (i.e. hedged or not) or has no effective position in either of the two when he publicly argues in favour of QE in The Guardian, certainly given that his wife used to run Brown’s diary. Perhaps he is not legally required to state whether his funds are positioned for lower yields and depreciating sterling but it would be the honourable, i.e. the right thing to do, to borrow a phrase.

  82. 82
    Steve Expat says:

    ha ha tat.

    Please explain in 100 words why we’re about to get inflation foisted upon us, and you may be forgiven…

  83. 83
    Mervyn King-Cock says:

    England to win World Cup 2010

    England cricket team to field eleven Englishmen

    Martin Johnson to be named International Coach of the Year

    Inflation to return to ~2% in the medium term

    – trust me, I’m a banker.

  84. 84
    Scruple-free estate agent says:

    wouldn’t sell him one. It would give us a bad name.

  85. 85
    Australian says:

    Copies of the book “Courage”, ghost-written by the Scumbag from Fife, keep coming down in price (should you be fool enough to want to buy one!).

  86. 86
    Sue Tzuzir says:

    If labour win the election it’s a cut glass crystal clear capi de monte figurine fucking catastrophe.

  87. 87
    Fees Office Clerk says:

    “A Territorial Army volunteer who was shot and killed on Sunday had written to his friends telling them that troops were “still waiting” for new body armour and helmets.”

    What’s the betting that No 10 and the MOD are going to spend the next 24 hours spinning their way out of this one.

  88. 88
    jgm2 says:

    The small problem in that otherwise delicious scenario is that we’ll have to sit and watch for five years while Brown with his ‘mandate’ reduces us to the point where he has to bring the troops bag from Afghanistan just to machine-gun the food rioters.

  89. 89
    Tom FD says:

    Come on, what were you expecting Guido, genuine watertight economic insight? These are the same people who proclaimed Gordon to be the best chancellor of all time… and most of them still do… and the really scary thing is there are voters out there stupid enough to believe it.

  90. 90
    Master Baiter says:

    Da man from Fitch is not a Conservitude spokesperson Hammond is.

    “What has got Britain through the recession so far has been the activist monetary policy at the Bank of England, keeping interest rates low, supporting the economy through quantitative easing,” Hammond said.

  91. 91
    Michael says:

    The Weimar Republic did some pioneering work along the lines of ‘quantitative easing’ – I seem to recall that there were one or two little problems.

  92. 92
    Doc Trough says:

    Can you fuck!

    You and Towelette can eat each other’s feet.

  93. 93
    Australian says:

    So, J0nty, you are saying that QE is “right” because George Osborne thinks so? Interesting to note who you follow in matters economic.

    Given up on your little mate, McBust have you?

  94. 94
    Master Baiter says:

    Australia is a fly infested dusty hole in the ground full of repressed weirdos. It is a hole in the ground from where a number of commodities are extracted. Commodities because they are physical are an invesors refuge when confidence in paper securities has evaporated.

    Lesson over.

    Boing, boing, boing

  95. 95
    Dave "Cast Iron Guarantee" Cameron says:

    And I,for one,will not sleep easy until unemployment hits 5,000,000 in the UK.

    We are the party of cuts and high unemployment

  96. 96
    Road_Hog says:

    What you mean like the fabulous VAT reduction, where because of Brown’s incompetence of not insisting that all listed rrp’s remain the same but the VAT reduction is shown at the till, retailers just stuck the extra couple of percentage on their bottom line. I wonder if any Labour voters scrimping by, visiting the Poundshop ever notice that they’re not being charged 98p.

  97. 97
    Steve Expat says:

    My mortgage is half the price it was a year ago. Oil is also half the price. Technological goods such as plasma TVs are also cheaper. This is where the majority of the negative pressure on inflation is coming from.

    Remember that any imported goods would have gone up, as the pound is worth 15-20% less in dollars or Euro that it were a year ago.

  98. 98
    Anonymous says:

    Guido I normally like your bearish approach, but you look to be wrong on this point. I’m not a fan of Krugman, ever since he went to the NYT and has been arguing from authority for his leftist principles, but he had an interesting point yesterday.

    Using the Taylor Rule (which predicts interest rates according to inflation and unemployment), the US should have -6.7% interest rates. The US has U6 unemployment of 17%, so don’t look for interest rates coming up from 0 for a very, very long time.

    I rather despise quantitative easing and would prefer other solutions. It’s just that this line of attack seems ill-advised with current conditions.

  99. 99
    purpleline says:

    As I twitted earlier today.


    Quantative Easing will lead to a dose of constipation followed by stagflation as UK rates unwind. Buy GBP

  100. 100
    jgm2 says:

    Only by letting Lehmann fail could Paulson justify propping up his old employer and maintaining the value of his half a billion quid in shares.

    PLUS at least it demonstrated to the world just how serious all this insane borrowing was. Brown of course would have preferred the US to just bail everybody out so that he could carry on claiming that his massive debt-fuelled economy was actually errr – an economy as opposed to a monsterous Ponzi scheme of debt standing on the bed-of-sand base that is the completely insane value of the UKs housing stock.

  101. 101
    purpleline says:

    or that hoon gordon the spaz

  102. 102
    Master Baiter says:

    George Osborne has found the error of his ways, reversed direction on how to deal with the crisis again.

    The Conservitudes have been wrong on every aspect of the crisis.

  103. 103
    jgm2 says:

    The man from Fitch is not a Labour man either.

    He’s just telling the truth.

    Ie Labour has brought the entire UK economy to the point where we’re fucked and the only solution is to get rid of them.

  104. 104
    jgm2 says:

    Cameron will indeed be the party of ‘cuts and high unemployment’ because Brown has, for purely mendacious political reasons, left him with no alternative.

  105. 105
    Australian says:

    There we have a fine example of master baiter damning himself with his own public displays of utter ignorance. You really do hold a perfect mirror up to the idiocy of those whom you serve, don’t you?

    I would suggest that you go back to school and try this time actually to learn something of economics, geography, history and common sense before coming here and highlighting your ignorant stupidity any more.

  106. 106
    Sir William Waad says:

    We have to have a period of very high inflation in order to cheat all the people who have lent us money. Otherwise Government would have to live within its (and our) means and that would be silly!

  107. 107
    Udderly 'orrible says:

    ….BEFORE a general election in which postal vote scamming and ballot box stuffing have been extensively coordinated in the Liebour stangleholds and tribalist ghettoes.

    However as another commenter noted above far better to let McLiebour sh*te win again and face the destructive Vesuvius they have fired up.

  108. 108
    miranda bliar says:

    It makes me so proud to see my fellow socialists trying to polish a turd even as the wheels are falling off.Keep the red flag flying brothers.

  109. 109
    Jonah Watch says:

    Where is effing danny “we cannot stop printing” blanchflower now?!?!?!

  110. 110
    Master Baiter says:

    resurgemus is an inveterate, unpleasant spoofa and quite dim.
    Ask Guidiot the Big Oaf.

  111. 111
    Postal Vote says:

    That would be position zero then? Less fishy for one, other cheesy for the other!

  112. 112
    jgm2 says:

    Paper securities like f’rinstance UK bonds?

    Don’t worry MB we all understand why gold, oil, the FTSE and the entire continent of Autralia is increasing in value while the pound continues its rendezvous with the shitter. And we all know which incompetent Labour jackass PM/chancellor is ultimately responsible.

    As do you.

  113. 113
    Master Baiter says:

    If Australian had a cogent position who would know because it is never stated.

    Boing, boing, boing

  114. 114
    He's Not Obsessed says:

    Funny how Davis has such a strong resemblance to Krugman.In fifty years,people will dig them up and hang their bones for the destruction they wrought.

  115. 115
    Jimmy says:

    “Havn’t a clue what you’re talking about.”

    You think he does?

  116. 116
    barefootcontessa says:

    Aussie, I don’t know why you keep giving MB the oxygen of reply. He’s just not worth it, ignore him!

  117. 117
    No to 6 quid! says:

    Well there you have it you tosser. All this governement is doing is following US economic policy. Interest rates should be higher. Remember the famous words..weak pound, weak economy!

  118. 118
  119. 119
    jgm2 says:

    If the ‘Yaylor rule’ is predicting interest rates of -6.7% then I put it to you that the Taylor rule is a load of shit or it has insufficiently defined boundary conditions.

  120. 120
    Master Baiter says:

    Well put and agree, (sorry) but one point, the pound is worth more against the dollar than it was twelve months ago.

  121. 121
    Heliogabalus says:

    You sir, are a terminal anus

  122. 122
    Master Baiter says:

    Yeah listen to Big Foot!

  123. 123
    Australian says:

    ‘fraid you are wrong again J0nty. The Conservatives are indeed far from perfect, but it would be almost imossible to beat McBust’s record of being so spectacularly wrong on every single thing he has said or done in his entire time in office since 1997.

    McBust sowed the seeds of the uniquely extreme crisis that the UK now faces from the very beginning. He commenced with the inbuilt destruction of the pensions sector. He continued with the dismantling of effective regulation of the City. He carried on by falsifying the inflation figures deliberately to create a falsely priced financial system. throughout all of this he spent and spent and spent money that did not exist whilst continually changing the goalposts to try to hide his tracks.

    Why don’t you just stop this garbage about what George Osborne does or does not think and try, seriously, to defend (with facts, not political claptrap) the idiocy of your master, McBust?

    Could it be that you have finally realised there is no way to defend McBust’s stupidity and so your mission is simply to try to divert attention from the obvious (in your, oh so amatuer and childish way)?

    Face it J0nty, you and your stupid little mates have been well and truly found out. You have no defence, no leg to stand on. Why don’t you face reality and just stop your pathetic, tribal bleating?

  124. 124
    Master Baiter says:

    That really is the end.

  125. 125

    Too vivid a picture JGM2.
    What we should instead is vote in another government and then call in the administrators.
    Then the administrators clear our debts by paying the EU 1p in the £, paying out PFI at the same rate and a host of other debt clearing exercises.

    The administrators also take legal action against the previous ‘directors’ who are collectively banned from belonging to a political party or holding any office, elected or quango’d for a period of 100 years.

  126. 126
    streamfisher says:

    Yes, and the people who have ‘lent’ them money since 1997 happen to be the Great British Public, £20,000 + per head and rising, who needs loan sharks, any chance of a Watchdog programme BBC?, no…. thought not.

  127. 127
    no longer anonymous says:

    Nothing wrong with deflation as long as it’s not caused by a falling money supply (although it could be argued that a one-off reduction in the money supply during a recession is necessary to help clear out bad investments).

  128. 128
    Rip Van Winkle says:

    Paulson should have let the whole bloody banking system go. Print the money to save depositers, not pump billions into insolvent and corrupt institutions to blow the bubble up again. Or should I say TRY to pump up the bubble again.

    Not all banks would have gone. And of those that did, new entrants and surviving banks would have picked over the bones of the dead elephants and saved the bits that were worth saving. The toxic investments (still there but hidden by accountnacy changes) would have ended up with the people who deserved to take the loss – the shareholders and, in particular, the bondholders.

    It would have been mighty, mighty bad. A much more brutal bit much quicker depression. But do you not think capitalism could have saved the day? Do you not think the profit motive would have meant a resurrection of the system? Only a clean system, not the corrupt, conniving liars currently still at the helm.

    See USA 1921. The Great Depression that never was. And it never was becasue politicians got out of the way and let the market mend itself. Don’t know if you’ve noticed but politicians fuck up everything they touch. Why would you think they could sort this sodding mess out?

  129. 129
    Sungei Patani says:

    Inflation makes your savings smaller.
    Deflation makes your savings bigger.

    Inflation is good for the feckless.
    Deflation is good for the prudent.

  130. 130
    Gordons favourite Butt Plug says:

    The Mk7 Helmets and Osprey Body Armour are to be despatched with the shiny new Helicopters. Now on order with Boeing.

    Other armour and helmets are just as good according to the spokesman from the MoD.

    A person earning £8k a month in theatre. Er behind a desk, Just as dangerous as being point man on a Recce Troop?

  131. 131
    Master Baiter says:

    The Conservitudes have been wrong on every part of handling the crisis.
    Which is a global crisis and which started in America. The US federal government controls the banks and car companies.

    Boing, boing, boing

  132. 132
    Sir William Waad says:

    Enjoy your dinner tonight, Bob Ainsworth, but you might want to leave a light on when you go to bed. There could be ghosts about. We wouldn’t want to find you in the morning, white with fear, gibbering and insane. It’s too late for your boss. He left the path of reason and decency long ago, but there may be just enough of you to be saved, mean little thing though you are

  133. 133

    The shallowest of shallow NUlab arguments MB. Pick the month of the orst of the credit crunch to compare against, rather than , say OCT 2007, which incidentally is the measure the new business rates are using.
    Funny that a 10 year high is being used to tax companies, despite a now 20 year low in property prices. Government response to why this being done?
    Because we’re broke and need your money despite the fact it will bankrupt many , many firms. Stand by for a massive fold up in April.

    Oh, and council tax the following year at the same 200% increase.

  134. 134
    Master Baiter says:

    Oh dear, where can it all lead?


  135. 135
    Gordons favourite Butt Plug says:

    Voting for the party that dare not speak its name, will ensure that Labour get in by a whisker.

    They really need to stew in their own shit.

  136. 136
    caesars wife says:

    I think you explained the exit route Guido , I enjoyed the historical touches.
    ms Kunsberg cited it was the petrol production and the rise is due to refinery capacity which is true at the moment , depends if you think that comming out is recession last and at a slower rate acts a drag anchor thus putting inflation on imports , let alone managing a bail out with a massive debt and interest to service .

    last out with a huge debt is bound to be a problem , some pundits see japan like scenario CW thinks japan situation was of a certain era and not as much toxic debt .

    I dont see how deflation can now occure , but then you can see the temptation to turbocharge retail although I think that would be more inflationary , its still all too fragile , the ruin may yet have achieved hitting the buffers at enough speed with a train load of debt to have us all weeping for a very long time.

    we do have darlings debt repayment plan 4 years to pay off half the borrowings , I presume he will be appearing at the despatch box with an upturned top hat and wand , but its a disgrace its got to this stage before before he tells us what the plan is .

    couldnt really make much of millibands speech , bit late in the day if you ask me weve been there nearly 9 years , they would have had much improved infrastructure if we hadnt been having to fight, look at all the trouble just get them electricity from the hydro plant that they blew up , Islam the faith of no lightbulbs !

  137. 137
    The plan is says:

    Hopefully a hearse in which to wedge the murdering lying piece of crap called Brown – and then toss his grotty body to the buzzards up in Scotland.

  138. 138

    Brown will want his face on the money soon he is printing so much of the stuff.

    Fine by me. By next year its only use will be as toilet paper.

  139. 139
    jgm2 says:

    You only get to do that once.

    Then you end up like Zimbabwe where no fucker will lend you any money, the money you print is worthless and your citizens just adopt a foreign currency.

    How long before the preferred currency in the UK is Euros or dollars or just plain old barter?

    Can’t be too much longer now.

    To hell with 50 days to ‘save the world’. We have six months to save the UK or we will be looking at anarchy as starving folk roam the countryside scavanging. There will not be a domestic animal left alive after another five years of this imbecile. No dogs. No cats. Hell, No songbirds. No rats. No gulls. We will have devoured the lot in an effort to stay alive.

    In fact there might be 20 million or so of us dead after another five years of this lunatic.

    This is not hyperbole. This is absolutely fucking nailed on if Brown and his imbeciles retain power after June.

    Where Zimbabwe leads, Brown follows.

    It didn’t start in America, it started in Zimbabwe.

  140. 140
    Master Baiter says:

    Deeply sorry guys-I can’t help being a shitty-arsed wank£r can I?
    I’ll eat my hat-sorry German helmet intead of having the usual w@nk -ok?

  141. 141
    oldrightie says:

    “It’s all about to come crashing down like a house of cards ” as it has once already. As Jimmy Snot and his band of thieves shakily place another card on the rickety re-build house of cards, he nervously watches the election clock. With luck he will jeer and mock the poor bastards, (you and I) trying to survive the next collapse.

  142. 142
    Lola says:

    Deflation is the destruction of money. It is the obverse of inflation, the creation of money. The change in the general price level is the result of these factors, not their cause. It seems as though various people are beginning to get this.

    The banks hate deflation. In theory they should charge you to deposit money with them and pay you to borrow it. That rather cocks up their business model. Of course they’d get round it by charging ‘fees’ – just like that bunch of governemnt employed crooks called HBOS have done with their fixed fee overdrafts.

    Really, never ever can I recall a more economically inept government then this one, except Zimbabwe under Mugabe of course.

  143. 143
    Gordon Brown - the colour of shit says:

    Gordon Brown – a murderer

    Gordon Brown – a fraudster

    Gordon Brown – the only way for him is down – 6 feet down.

  144. 144
    caesars wife says:

    there approach to the price of oil was unique !.

  145. 145
    Master Baiter says:


    A cogent non vituperative thought on Guidiot the Big Oaf’s comments, well, well, well.

    Well put that person.

    Inflation , evil!
    Deflation, much much more evil!

    Isn’t it?

  146. 146
    barefootcontessa says:

    Be fair, only three.

  147. 147
    H says:

    I’m fairly sure we’d just lived through 15 years of deflation in the UK when the asset bubble burst. Those with incomes but without assets have seen their real living standards rise steadily faster than their incomes, as trade and technology have made everything cheaper and better and more easily available.

  148. 148

    Personally I only ever buy things I know other people have wasted more money on than I have, like hospitals.

  149. 149
    He's Not Obsessed says:

    Give us Labour’s baby,Gordon!

  150. 150
    resurgemus says:

    A spoof Master Baiter message brought by resurgemus.

  151. 151
    Cooper Balls - one Photoshop action away from Eva Braun says:

    Oh how repulsive – the thought of Cooper Balls with her legs open.


  152. 152
    Engineer says:

    Turds with wheels? A cure for constipation, perhaps?

  153. 153
    Brown - his hands covered in blood says:

    Just in case Brown orders the total removal of the late Andrew Fentiman’s words;

    “We are still waiting on these new body armour and helmets that were promised to us. You would have seen the story splashed all over the news, they said they would be ready for us but we hope they will arrive soon…”

    This man was sent in to battle without the right equipment.

    Gordon Brown – you have the blood of our soldiers on your hands.

    Gordon Brown – resign now you murdering bastard.

  154. 154
    streamfisher says:

    Haven’t you got YOUR tin of….. Brown’s Patent Turd Polish yet?, available now from the BBC and other selected media outlets, hurry while stocks last.

  155. 155
    Road_Hog says:

    In fairness it was a blog on his company’s website, so I think it would have been their decision to take it down in respect for his family. However I did note when I read it this morning that he clearly said that he had not received the body armour, not, that he had not received the new body armour.

    It will be very interesting to see how he died/what his injuries were. I imagine if he got shot in the chest, it would be clear whether he was wearing armour or not.

  156. 156
    13eastie (169 Days, Gordumb) says:

    Did Gordumb send remember to send any well wishes to the SFA last weekend?

    He must have thought his luck was in – finally a British team will win by default after being pitted against another home nation.

    Oh dear, Scotland!

  157. 157
    jgm2 says:

    Over-geared economy? What fucking incompetent jackass allowed that scenario to develop on his watch?

  158. 158

    If Labour win in the Spring the United Kingdom will be renamed the Mongolian Cluster within 24 months.

  159. 159
    Engineer says:

    And there in a nutshell, we have Labour’s economic philosophy.

    Kick the prudent, reward the feckless.

    In the short term, it buys votes. In the long term, it ruins the economy and quality of life, notjust for the prudent, but for all.

  160. 160
    Steve Expat says:

    You’re right MB, (bugger) Pound is worth 15c more against the dollar than last year ($1.67 now against $1.52ish then)

    Was up at $2 not too long before that though (maybe 18 months ago?). There’s always a lag on prices of goods as they are ordered by the suppliers (and the prices agreed) way ahead of when they hit the streets here.

  161. 161
    Steve Expat says:

    He did a good job of abolishing the boom, don’t you think?

  162. 162
    Ivan says:

    that would be an impossibilty for labour to sort any thing out

  163. 163
    Steve Expat says:

    Al, 800 billion public debt, surely?

  164. 164
    Uncle Bob Mugabe and his swinging jungle blues band says:

    Now I’m the king of the swingers
    Oh, the jungle VIP
    I’ve reached the top and had to stop
    And that’s what botherin’ me
    I wanna be a man, mancub
    And stroll right into town
    And be just like the other men
    I’m tired of monkeyin’ around!

    Oh, oobee doo
    I wanna be like you
    I wanna walk like you
    Talk like you, too
    You’ll see it’s true
    An ape like me
    Can learn to be human too

    Gee, cousin Louie
    You’re doin’ real good

    Now here’s your part of the deal, cuz
    Lay the secret on me of man’s green money

    But I don’t know how to make money

    Now don’t try to kid me, mancub
    I made a deal with you
    What I desire is man’s green money
    To make my dream come true
    Give me the secret, mancub
    Clue me what to do
    Give me the power of man’s gold flower
    So I can be like you

    I wanna be like you
    I wanna talk like you
    Walk like you, too
    You’ll see it’s true
    Someone like me
    Can learn to be
    Like someone like me
    Can learn to be
    Like someone like you
    Can learn to be
    Like someone like me!

  165. 165
    SpoofReader says:

    They really did promise us a land where “Things Can Only Get Better”.

    Looking at it that way, Liebor have kept their promise. To the extreme.

    Sure as hell can’t get much worse.

  166. 166
    Gordon Brown says:

    Job done.

  167. 167
    jgm2 says:

    D’ya wanna bet?

    This is not the end. This is not the beginning of the end.

    This is only the end of the beginning of how bad this is going to get.

    And you have the Maximum Imbecile to thank for it all.

  168. 168
    Brown - the clock is ticking and it's the seconds,not the minutes. says:

    There is no way that Brown’s fraudulent govt can continue until next May.

    We know that for the moron Brown,a week is like a standard month in politics.

    I think there will be an event in the next two months that will create the most tremendous demand for his resignation across the UK and will lead to his having to resign immediately – possibly linked with Afghanistan.

    He will not last until May.

  169. 169
    I aint paying no debt says:

    Who wants to dig up milton freidmans body and fuck him in the ass?

  170. 170
    Glaswegian says:

    Guido is absolutely right, but we should not be surprised that our political masters have chosen to inflate the money supply, because successive governments have been doing it since the end of WW2.
    How else would houses that sold for £600 in 1945 be selling for £600,000 today?
    Every time that the West has had a crisis, the money supply has been increased to avoid mayhem in the markets. After 9/11 the money supply was increased to avert a financial meltdown and we have been playing this “one club” strategy for years.
    Governments are fearful of the social consequences of deflation because debt is used to make the financial wheels turn. They would rather ply us with devalued money to keep us quiet than go through the pain of returning to sound money.
    The only reason the £ has not collapsed further is that the US is printing money as fast as we are, and there are still suspicions that European banks have not yet owned up to the bad loans they are concealing at the moment.
    A happy ending looks hard to predict.

  171. 171
    The Beast of Clerkenwell says:

    I would much rather have that fine Yorkshireman President Ebagum of Zimbabwe running this country rather than that fucking halfwit Gordon McMental
    At least Mr Ebagum looks like a statesman, acts with decisiveness and threatens to kill bankers that dont do as they are told., he also knows how to dress, and sort of comes over like Trevor McDonald.

    Vote Ebagum in 2010

  172. 172
    Father Christmas says:

    ho ho ho if you have all been good little boys and girls this year, I could pop a bomb in Gordon’s present ho ho ho.

  173. 173
    Sir William Waad says:

    Isn’t Bilderberg a kind of marzipan sponge cake?

  174. 174
    Sir William Waad says:

    True, but cholera is a pain in the gut quite frankly.

  175. 175
    I will be a legend says:

    I aint scared of the future as long as their is animals or humans about then i will eat well.

    I’ll enjoy hunting down veggies and eating them and sucking on their bones for the marrow the most.

  176. 176
    Gordon Brown says:

    er, guido, I understand what you’re saying….I think…..

    …it’s something about money, innit?

    Yes; my idea was that we didn’t have enough money because I spent it all, so we printed more. simple. job done.

    They don’t call me an economic genius for nothing you know.

    In fact, they don’t call me an economic genius at all.

    They call me a moron with no idea what I’m doing. Not sure why that is.

    By the way, don’t you go on about me following mugabe; he learned everything from me, not the other way around.

  177. 177
    speccielator says:

    The yanks think we are the best out of bad lot.

  178. 178
    cuntinental europe says:

    if dave and george had been in charg over the past 12 years we wouldnt be in the shit we are now. fool.

  179. 179
    Broon v Obama Speling Bee contest (he makes Bush look intelligent) says:

    not all – the Political elite (esp the champagne socialists) can tracel the world on ‘government business’, claim for porn and wear expensive watches.
    Great Britain – become a Politician, ability to become a millionaire.
    Zimbabwe – “

  180. 180
    ex bond trader says:

    argue all you like- the fact is that we have 8-12 million economically inactive people in the uk…….and 400,000 jobs!!!!!

    a massive trade deficit-the sinking pound will not help because industry makes up only 11% of the economy………

    all of the experts are stuck in the past!!!!!!!!!

    you can adhere to any ‘theory’ but they are history………

    the uk has few natural resources as successive govts have blown all the oil is now running out and we are net importers!

    millions of jobs have been offshored and will NEVER come back!

    on average it costs £100,000 per job to start a factory………and we are light years behind ………..

    in case you hadnt noticed the great fat scottish faggot has been in charge of uk finance for the last 12 years!!!

    what sort of ego maniac employs banking advisors ,costing £millions,then ignores them and loses £billions???????? (gold)

    qe is madness!!!!!!!!!!!!!

    ask anyone with credit card debt………..

    the history scholar has learned nothing from the 3rd world countries that have suffered in the last 40 years……….

  181. 181
    streamfisher says:

    Frigging modded again!, but for what, just for saying get a tin of Browns Patent Turd Polisher, which one is the trip word?

  182. 182

    “We have had the RPI, the CPI, the HICP, the PPI and the SPPI; each has proved useful to us but as times change so must we adapt and strengthen. And so, today, I am happy to announce that as of this coming period my Government will be adopting a new measure of inflation, the WGTISB (What Gordon Thinks Inflation Should Be). This will set us apart from our competitors globally and allow us to continue to prosper in GL (Gordon Land, as confirmed earlier today on the BBC) as we have already prospered so far. Each month, or more frequently if necessary, the Prime Minister will sit down and have a meeting with himself and, depending upon what the newspapers have been saying, will agree the rate of WGTISB for the previous period and what it should be for the next period. I believe that he is best placed to perform this function and indeed that it is the right thing to do. Unlike the party opposite of course who would do nothing”.

    Pass that to HM; we need the best Queenie voice too.

  183. 183
    G B RUIN says:


    You might walk like a woman and talk like a man, but there is something brilliantly simple about this new “one number for everything” economics you’ve invented.

    Base rates; inflation; the money supply: all the same thing!

    I’ve always felt we’ve been complicating things rather.

    Darling and I need someone with your grasp of economics in Downing St.

    You can start at 0800hrs tomorrow.

    (Wear whatever you feel comfortable in).

  184. 184
    Clocking Orf says:

    Comment 143 in reply to 47 timed at 5:59pm

    Proof that MB in true shop floor style doffs his titfer and clocks orf from the pay of LieborList sometimes one minute early!

  185. 185
    Cast Iron Quisling says:

    so re-elect him and he’ll complete the other half

  186. 186
    Not everything is black or white says:

    Which of the two photographs is the Liebor Luvvie, I’ll go for the one sporting the Hitler tache, in keeping with their fascist doctrine!

  187. 187
  188. 188

    Stronger than your grasp of spelling.

  189. 189
    Anonymous says:

    Good plan Bill, I too like the idea of sticking it to the PFI bastards

    ‘corse we’ll have to get any money we want to borrow afterwards from Ocean Finance. But it could be the way to go

  190. 190
    Max says:

    Clocking Orf at 178: Mad Ali allows them a comfort break before braving the tube.

  191. 191
    Lizzie says:

    Ha ha!

  192. 192
    BillyBob poops on ZaNuLab says:

    wow…. what a pair of ugly bar stewards !!!

  193. 193
    purpleline says:

    cut taxes economy recovers simples

  194. 194
    denverthen says:

    Awesome post. Keep ‘em coming.

  195. 195
    Stronghold Barricades says:

    Who’s made all the money in between?

  196. 196
    jgm2 says:

    The problem with sticking it to the PFI bastards is that via HBOS and RBS we now own most of the PFI bastards or at least the PFI bastards debt.

    Who so you think was lending the money to the PFI bastards?


  197. 197
    Be Gone Gordon ! says:

    Brown resign? Don’t make me laugh

    In his book he’s still getting on with the job – tis the right thing to do !

  198. 198
    ex bond trader says:

    all of the figures are fiddled!!!!!

    take out govt. spending from gdp and we have been in recession for 7 years!!!

    add to that inflation which was really at 20% but reported as 2%?

    dont believe me?

    check out house prices from 2000 onwards……..
    also see how the rpi/cpi are manipulated……..
    oddly gordie fiddled that too!!!!!!!!!

    the uk justs stinks……………..

  199. 199
    Bad Al Campbell says:

    Liz you f█████ ████,

    The WGTISB will be a cracking idea – add this paragraph to your speech you stu██ ████.

    There’s no need to carry on making ██████ embarrassingly incorrect forecasts about the future. (This will prevent any confusion like the Prime M██████’s little slip in the HoC last summer when he got in a muddle about the difference between ‘cuts’ and ‘investment’).

    We just need to tell people that everything that has happened so far has been exactly as they would have wanted. Only better. And more perfect.

    “The official measure of WGTISB will be the Wing Ding and it will be published each month (or more frequently, if necessary), as a single character from the Wingdings type face”.

    “This will make WGTISB a pioneering, global, international, world first, affirming Britain’s economic leadership”.

    Now, get on and tart yourself up you f██ ████er.

  200. 200
    barefootcontessa says:

    I don’t understand a word of it. Am I in the same position as the gorgon?

  201. 201
    Mike Cutz says:

    No price rise = no speculation = no accumulation =
    oh sod this…

  202. 202
    Dack Blog says:

    I just had to switch David Miliband off on C4 news. He was doing a very strange starey-blinky thing and I was worried he might be trying to hypnotise me into voting Labour.

  203. 203
    Mad McDoom says:

    I had to take the cost of housing out of the inflation equation or else I could not embark upon my mad spending spree. It was the right thing to do.

    Hee, hee, hee! I am best placed, unlike the party opposite who have been wrong, wrong and wrong again.

    What cast eye-ron guarantee will the opposition next make that anyone will believe?

    Vote for me or vote UKIP, her Majesty will be telling you the same.

  204. 204
    streamfisher says:

    O.k. sense has prevailed…. speak harshly to your little boy and beat him when he sneezes they only do it to annoy because they know it teases.

  205. 205
    don't ever say I told you so says:

    Blair back in frame for El Presidente

    Be afraid, be very afraid.

  206. 206
    Austrian Reawakening says:

    Pop it in his past,please.

  207. 207

    TaT It’s OK to be gay ,You seem obsessed with anal and cock sucking ! your mum will understand Come out of your closet, and get a big hug from mummy !

  208. 208

    *©George Osborne, who was against QE before he was in favour of it. God knows what he thinks now.

  209. 209
    Susie says:

    Another handsome, educated, gallant patriot taken from us. They are the creme de la creme sacrificed by the lowest of the low.

  210. 210
    RalphJolly says:

    I’m a big fan of deflation. That’s exactly what we’ve got in the USA . In the last eighteen months the price of practically everything has halved. Food, cars, fuel has got a lot cheaper for example. I would say that a dollar will literally buy you twice as much as it did 18 months ago. The only thing that has gone up are the salaries of public officials and those at TARP banks and consequently taxes. All this inflation has been absorbed in an asset bubble.
    How long this lasts who knows, but with “underemployment”, or real unemployment at 17.5% by official figures, it’s hard to see where the pressure comes from.
    Labour luvvie Davis, is an ex employee of the “great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money”. It is his job to influence the govt to act in the interests of GS and direct as much money towards them as possible. He is entirely discredited. I only hope that the next govt throws these crooks out. Probably too much to ask for

  211. 211

    Yo Dude, Where’s the Mugabe style Hyperinflation ?

  212. 212
    streamfisher says:

    Is that another one of the tossers that been elevated to the upper chamber?…
    Lord Grasp of Spelling.

  213. 213
    A respectful point of information says:

    Deflation is the destruction of (asset) value and never money. Money goes further as deflation can only operate where received asset values (eg housing) are found to be inflated (bubble).

    The problem with deflation is that it negatives risk. One doesn’t want to invest if the return on capital employed is negative. eg. I buy stock at 100 and sell six months later at 80. Why do it. Deflation eventually freezes all activity.

    Inflation is the result of ‘creating’ money over and above the capacity of an economy to absorb it. More money chases a fixed quantity of goods and, therefore, prices rise until production catches up with supply.

    ‘Ideal’ inflation is around 1 to 1.5 %. It incentivises capital.

    The UK housing ‘bubble’ should have been addressed as inflationary. It wasn’t and is causing all kinds of problems now and in the years to come.

    Light touch Labour with Gordon ‘the Bankers stooge’ Brown at the helm.

  214. 214
    ONS says:

    This period’s inflation statistics have been announced as: ~

    This is an improvement over the previous period’s figure of: ¬

    Gordon Brown has declared this a triumph of his economic strategy of > proportions and that the country is once more in a position to take advantage of the global increase in confidence of #.


  215. 215
    Cast Iron Quisling says:

    As lady-boys go, she’s pretty hot

  216. 216

    Agreed ! CUT Most of the 85000 non jobs in the MoD(two serving soliders per one desk jocky)
    Cut all these labour voting lazy bastard council workers !
    Cut All these useless C*nts on Quango,s
    Cut all labour non jobs all crounging bastard scum on disability
    Cut all benefits to the idle work shy underclass

  217. 217
    ThousandsOfMilesAway says:

    Deflation is assured. You only have to look at the level of outstanding derivative debt to know that the whole lot is a house of cards. No way that they can ever pump enough to counteract nearly a quadrillion dollars collapsing. Huge outflows from equities into bonds as a result to feed the massive appetite of the government monster every auction.

    Markets are starting to break down – FTSE has broken its trendline, US has gone next to nowhere in the last 3 months.

    The wheels on the handcart are wobbling…

  218. 218
    twitter ye not says:


  219. 219
    Max says:

    Are they selecting under a system of AV/PR in which case perversely it will be Nigel Farage?

  220. 220
    Cast Iron Quisling says:

    Yeah, BMW drivers – you must have seen them.

  221. 221
    Anonymous says:

    So is Brown.

  222. 222
    tats adorable groupies says:

    FAP! FAP! FAP! FAP! FAP! FAP! OOoooooOOooo! tat!!! FAP! FAP! FAP! FAP! FAP! FAP! FAP! notice us PLEASE!!! FAP! FAP! FAP! FAP! FAP! FAP! FAP!

  223. 223
    nell says:

    Was he talking again about how he’s going to bring the taliban back into the fold and turn them into decent afghanistan members of government??!!

    I heard that bit and then waited to hear why, if he wanted to do that with them, we were having to allow our decent young men to go out there and get killed by them, but he didn’t seem to have an answer to that.

    Then gordon said something about an exit strategy beginning next year and a spokesman for President ditherer said no it’ll be at least five years.

    Not much of a strategy between them then?? Just a load of hot air!! I think they just say what they think we want to hear – doesn’t matter if it’s all lies.

    You did well to switch him off Dack

  224. 224
    ThousandsOfMilesAway says:


    Seriously, can we leave yet?

  225. 225
    Max says:

    No, you have the advantage of understanding that you don’t understand it. Imagine the torment of being in your position but thinking you understand it; indeed believing you alone understand it.

    Those are long uncomfortable nights in Downing Street relieved only when dawn starts to break.

    Then the newspapers arrive.

  226. 226
    a citizen says:

    Seeing as you’re the only one who gives a toss what a hypothetical Chancellor who hasn’t been in power for the last 12 years says, you can now fuck off.

  227. 227
    Steve Expat says:

    Interesting counter to the prevailing arguments there.

    Still think if your scenario happens they’ll just keep printing ever more money, adding yet fuel to the inflationary fire which will undoubtedly result in the end – maybe even just after the election, if Gordoom “Scorched Earth” Broon gets his way…

  228. 228
    nell says:

    No contessa you and I admit we don’t understand it.

    gordon doesn’t understand economics but pretends that he does then goes on to make decisions based on his boyhood wish list to spend spend spend on everything in the sweet shop.

  229. 229
    Cast Iron Quisling says:

    Post of the day!


  230. 230
    Max says:

    Well hello…

    [Twiddles moustache]

  231. 231

    Wait till Cameron makes McMental Lord Brown Of Kill Kiddies !

  232. 232
    Mark Oaten says:

    It has its good points

  233. 233
    fools gold says:

    I’m looking for a handcart to transport my monopoly money as it happens.

  234. 234
    Big Labour Troll Fan says:

    Georgie here.I really haven’t a clue so don’t mock Gordon and Alistair otherwise I may really have to run the economy.If that happens I am taking my ball home so the game has to stop.I don’t know the rules so I don’t want to play.Davy says he doesn’t know any rules either because last time he tried to play someone called Norman Lamont made a big mess and a big bad wolf came along and swallowed him.

  235. 235
    Cast Iron Quisling says:

    That is a seriously scary picture!

  236. 236

    I had a quick look at the relative death rates between UK and US troops in Afghanistan. Terrible reading – shows what a lie the myth that our soldiers are well-equipped is.

  237. 237
    Dame Mandy says:

    “……unacceptably long.”

    You never said that last night ducky.

  238. 238
    Red_Mist says:

    @ex bond trader at 6:43 pm

    Yep….. you’re not wrong, mush. So what’s the solution …. I reckon a good old Civil War. Let’s start with shanking a few ZanuLab MP’s followed by eviscerating the remaining Leftie scum. They could be far more useful in death than they ever were alive – by fuelling the Power Station Furnaces.

    Sounds like a plan to me :P

  239. 239
    Ruth Kelly's plaything says:

    OK, let’s just suppose that the laws of economics have NOT been suspended.

    Hugely increased money supply leads to hyperinflation.

    What does an ordinary Joe do to protect his modest savings?

    Gold, works of art etc not practical for the little man, owing to big margins for dealers and difficulty in liquidating.

    Nat Savings Inflation Bonds – already got the max allowed.

    Equities, yes, but which ones? UK or overseas?


    It would be great to have the views of people who move in the financial world.

  240. 240
    Big Labour Troll Fan says:

    We are charged 98p.They deduct it at the till.

  241. 241
    Max says:

    Cripes the Boob picked up on it:

    We are still waiting on new body armour

    Now off the front page but it is going to be a real pain for No.10 to redact.

  242. 242
    Wigan Grandma says:

    David Cameron can only count his own £30 million fortune,not our pennies.
    Won’t trust him ever.

  243. 243
    Engineer says:

    How do we get out of this mess?

    1) Stop spending more than the country earns.

    2) Encourage the private sector – manufacturing, services, financial – the lot.

    3) Encourage exports. Try to limit imports.

    4) As the economy grows, use the tax revenues generated to start paying down debt.

    5) Keep a tight limit on public spending by encouraging the private sector to do as much as possible, and by incentivising people to look after their own needs by saving.

    The next government might even start on that road. If it gets a ten-year run, it might even start to make some impression on the debt mountain. Then we get another socialist government, and we’re back to square one.

    We’re stuffed. Do all that you can to look after yourself and your family. The Conservatives might not hinder you too much (taxes apart) but the parties of the left will bleed you dry.

    You’ll have gathered from the above that I’m not an economist. Deflation? Not bothered – at least my savings don’t disappear. Inflation? No thanks, because my savings do disappear. How to stop inflation? For crissakes stop printing funny money…..

  244. 244
    snodgrass says:

    When things go quiet, you know Bliar is plotting and wheeling and dealing. I wonder what he’s offering now, he’s already given our rebate away.

  245. 245
    Mervyn King says:

    Not really.In this situation you have to print money.

  246. 246

    Labour seem to be paying attention. It’s only a slight edge but enough to tip the balance. Within two weeks of writing to my, then, Labour MP Prime Minister Blair made refocusing the Human Rights Act a top priority. The Tory response is just to knock it down and the Liberals have given into vanity. Bottom line? Labour give me what I want.

    The Human Rights Act was the elephant in the room for too long, and highly paid lawyers, special interest groups, and judges got it wrong. Labour were prepared to call that bullshit and drive a proper implementation of the act in the teeth of self-styled experts, posturing politicians, and a difficult media. It’s important because both rationality and compassion matter. It’s not just words – it’s peoples lives.

    I can list other policies like, say, internet security to an NHS which is reformed into a preventative system, which Labour seem to have listened to and have a grip on. I get no sense the Tories understand these things and the Liberals just fade on you. Sure, Labour may be a bit slow and be a bit muddled but you get that with any complex system. I’d challenge anyone to do better but that clears rooms faster than a live grenade.

    Other parties skate the edge. Labour is the edge.

  247. 247
    a shitizen says:

    Seeing as you’re the only one who gives a toss what a hypothetical Chancellor who hasn’t been in power for the last 12 years says…

    *©Vince Cable, who was against QE before he was in favour of it. God knows what he thinks now. – Guido Fawkes …you can now fuck off.

  248. 248
    Mervyn King says:

    Really full of hate aren’t you. Peace peace shanti shanti ohmmmmmmm.Sleep well.

  249. 249
    nell says:

    Nope – bliar can earn more in a month on the speaker’s circuit than he’ll earn in a year as EU President.

    But I do think mandy wants the Foreign Minister’s job. You just wait and see.

    militwit of course is hoping to be the next leader of the failed labour party.

  250. 250
    Goldman Sacks of shit says:

    it’s there because the idiots who kept predicting Mugabe style hyperinflation have been proved wrong

  251. 251

    I know this blinky problem. Its a malfunction in one of his visual circuit boards. Just needs a bit of tweaking and a reboot, then Millibot will be right as rain

  252. 252
    nell says:

    Not an economist?? – you make better sense than gordon ever did.

    How do we get out of this mess?? – let’s get rid of labour for start!!

  253. 253
    Great Granddad says:

    It is mine though motormouth. Want to know what hyperinflation is? That is when the people start dying. That is not a blogger’s exaggeration. That is the word of one whose economics is his strong suit. And, sadly, one who has been there and done that.

  254. 254
    Mervyn King says:

    O doom doom moan groan Oh Oh Oh hard luck doom doom. No it is not like this at all.Millions can now afford their mortgages,house prices are realistic. The shops are full.Christmas is coming and the geese are getting fat. Stop Scrooging around the place,you Tory saddos.Get out more. Britain is a wonderful place to live.

  255. 255
    Mervyn King says:

    Not true at all.

  256. 256
    Great Granddad says:

    Whoops. More posts. That last was aimed at motormouth masturbator, not Guido.

  257. 257

    When are you supposed intelligent commenters going to wake up to the fact that none of this is by accident, it is all by design.
    The elites are at war with you, NeoFuedalism is their endgame.

  258. 258
    nell says:

    Let’s accept it!!! – militwit will NEVER be as right as rain.

  259. 259
    Hooray for the Bankers! says:

    The Bankers and the City will save us

  260. 260
    Belsen was a gas says:

    Halve the population, it worked for the Germans in WW2 look at them now laughing as the masters oft he EU bank.

  261. 261
    Belsen was a gas says:

    Infact why did we bother winning the war, look at France, Germany, Australia, USA, Canada, Italy, Japan all now fucking laughing their asses off at us.

  262. 262
    Tired and jaded says:

    “FTSE has broken its trendline”.

    I can fit a trendline to anything, after the event.

  263. 263
    Moley says:

    Inflation also creates demand.

    You have to buy now before the price goes up.

    Before Thatcher came in prices were rising faster than it was possible to save; that new car remained forever out of reach.

  264. 264

    Whatever turns you on.

  265. 265
    Damian McBride, working from home, but reporting by Blackberry. says:

    Just make sure you are up in time to post on this blog first thing tomorrow morning Baiter or you’ll be replaced. And make it something new. I’m not paying you to spout the same old shit everyday, you’re supposed to be pretending to be an independent mind.
    And your cast iron disaffected Tory is as see through as Jordon’s knickers.
    A real plant would be more believable than this failed attempt at subterfuge.
    About as subtle as a giant beanstalk with a sign saying this way to LabourLand nailed to it.
    Sort it out or its door knocking in Redditch for you.
    Stop fucking up.

  266. 266
    nell says:

    Bliar has created two companies since he left office called FireRush and WindRush. He should have registered their interests and accounts with parliamentary authorities but he is resisting. I wonder why???

    He also has his faith charity and his ‘failed’ job that’s paying him loads as a middle eastern envoy. And then there are his commercial ventures like his recently failed attempt to get Tesco’s to pay him £1million for his middle eastern contacts which he has made through his envoy’s job.

    Wow!!!! He’s a real trougher isn’t he??!! He makes the baronesses udd and scot look like abandoned mangy alley cats.!!!

    Oh Yes!!. The EU, desperately trying to look respectable , especially in Britain where we are very sceptic about EU benefits, really need him as their President dont they??!!

  267. 267
    Anonymous says:

    You an absolute c’unt of the highest order. If you think inflation is good for young people than you are a complete and utter imbecile. If you think reducing everything I have saved over the last 6 years of working to zero is a good thing, so I can in fact no longer afford a mortgage, then by god, humanity would be better off if you were buried. Dead or alive, I don’t care. And if you continue to hold a view that inflation is good for young people, and the scenarios outlined by others on here come to pass, then you will be hunted down and executed. Which you undoubtadly deserve.

  268. 268
    Beezley says:

    … as favoured by Bob the Bilderberg …

  269. 269
    Retired Engineer says:

    Couldn’t agree more, didn’t these idiots read any books at school, basic common sense,
    Mr. Micawber, in Charles Dickens’ David Copperfield, summed it up by saying:

    Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

  270. 270
    Beezley says:

    Sounds reasonable.

  271. 271
    Down with Brown! says:

    Good to see people finally realising how badly Labour have messed up our economy. They must never be trusted with the nation’s finances ever again.

  272. 272
    Down with Brown! says:

    Don’t forget our bad our balance of trade has become under Labour. Sooner or later this country will run out of money and it will be Gordon Brown’s fault.

  273. 273
    Technician Beezley says:

    Yes, he uses the same circuitry (Model 55-619) as Ed Balls. They fixed the blinking in the 55-624, but they can’t get Ed’s cranium open, and as for Miliband, it’s such a fucking rat’s-nest of wire and blobs of solder in there that Maintenance won’t even consider the upgrade.

  274. 274
    nell says:

    My Uncle , as a British soldier, was one of the first into Belsen.

    He lived his whole life after that in Dagenham with those terrible memories of man’s inhumanity to man.

    He talked about it often when we were children . How, as soldiers, they wanted to comfort the poor scraps of humanity they found there,and couldn’t. They were instructed they must not even give the children they found in those camps the chocolate they had in their pockets, because the children were so starved that if the soldiers gave them food beyond what the medics were going to administer, they would most likely die from the shock of it.

    He told me the adults and children they found there were walking skeletons , but at least, he said, they were alive.

    He and his fellow soldiers found piles of bodies elsewhere , gassed or just having died from illness and disease.

    Let’s not talk about Belsen or Auschwitz!!!! Man’s inhumanity to man is too painful.

  275. 275
    Moley says:

    Don’t forget to reduce GDP by the amount of QE and the budget deficit too.

  276. 276
    Prudence Brown ain't so Prudent says:

    Brown will never run out of other peoples money ever!!

    Mandelson and Blair will just lend him some. And the Kinnochios have got loads as well!

    Prescott is now nouveau riche, as is Balls, and all the rest of them.

    Absolutely fuckin minted.

  277. 277
    thick as thieves says:

    stop using my name tatchell.
    final warning.

  278. 278
    Engineer says:

    Yup. Sums it up very neatly.

  279. 279
    Lil' 'ol Missy Twatty, de Twatty from da TwattyLand says:

    De Massa sur’ am de Main Man owright!

  280. 280
    Susie says:

    This is where Jack Straw’s secret coroner’s inquests will come in handy for the MOD.

    No-one will ever know and I bet the medics will be sworn to secrecy too.

  281. 281
    Raving Loon says:

    The official inflation statistics (not exactly reliable themselves) were being weighed down by falling mortgage costs. If the change in mortgage costs plateaus, then the downward force will be reduced and the increases in other prices will have a greater proportional effect on the headline figure. The inflation is already here we just aren’t being told yet. The time when we bring home our wages in wheelbarrows is soon upon us.

  282. 282
    streamfisher says:

    How would you know silly old codger, cup of tea! CUP OF TEA!!!!

  283. 283
    Old Nick Heavenly(real dimwit) says:

    In the meantime en France they are cutting a tax on businesses, described by the government as stupid in the first place, and one that gets paid to the council/commune.

    All the town halls/marie are freaking out.

    The socialist leader was on the box explaining that it was injust and insane.

    Those damm people enterprising people that will take risk and give people jobs!

    Learn a foreign language guys and run.

    Either that or have a revolution and invite Sarko to run your country.
    The French Minister of Finance can count!

    Can you imagine, a Finance Minister that can count?


    Thought not.

    It’s fucking great in Belgium.
    We have a beer fest coming up soon in the village. No bar, only a butchers shop, but our very own beer fest.

  284. 284
    Indigo says:

    Bliar has created two companies since he left office called FireRush and WindRush.

    That sounds like Rapture Ready code. At Pentecost, there was a sound of a rushing wind and tongues of fire alighted on the apostles’ heads.

    The purpose of the complicated network of various Windrush Ventures is not entirely clear. One City accountant who has studied the accounts filed with Companies House said: “My feeling is that the structure has been set up principally to prevent prying eyes from finding out what Tony Blair is up to.

    Like shredding his MP allowance receipts.

  285. 285
    a citizen, Ed Balls edition says:

    So what?

  286. 286
    nell says:

    That’s sounds like a reasonable explanation of th actions of people like bliar, mandy and brown doesn’t it???

  287. 287
    julian norwich says:

    nell, you numpty, just think how much more Blair could earn on the speakers circuit after he’s been El Presidente. FFS, it’s not rocket science.

  288. 288
    Indigo says:

    Is the EU turning into a Soviet Union? What are the signs?

  289. 289
    Dave "Cast Iron Guarantee" Cameron says:

    Look I am truly sorry and apologise unreservedly for giving a cast iron guarantee about a referendum.

    Now let’s draw a line under this cock -up please

  290. 290
    Engineer says:

    Not on their own, they won’t. And not if they’ve all buggered off to Zurich to avoid 50% income tax, either.

    Encouragement for all enterprises is what’s needed, especially if they can export. Contrary to popular belief, we still have manufacturers, but they don’t get much help – rather the opposite. That’s got to change.

  291. 291
    Engineer says:

    Things are bad, but they’re not bad enough to warrant genocide!

  292. 292
    Engineer says:

    For what purpose?

  293. 293
    Al says:

    My typo!

    £800 billion it is indeed. And growing rapidly every day.

  294. 294
    Wee Gordy McBroon says:

    I, on the other hand, am not in the least bit guilty about signing away the nation’s sovereignty without a referendum. In fact, it’s a triumph, because it really gets up the noses of the Right. What do you mean, birthright and independence? not my problem; I got to have a laugh at the expense of the Tories. That’s all that matters.

  295. 295
    Round the bend Brown says:

    FAP! FAP! FAP! FAP! FAP! FAP! Gordon Brown U turn 10p tax rate ! FAP! FAP! FAP! FAP! FAP! FAP! FAP! Gordon ‘I didn’t call an election ‘cos I knew I would win it’ Brown ! FAP! FAP! FAP! FAP! FAP! FAP! FAP! childcare tax break U turn ! FAP! FAP! FAP! FAP! FAP! FAP! FAP!

  296. 296
    DelBoy says:

    Agree entirely Nell. My brilliant mathmatics teacher (who taught even me) told the odd story about going into Belsen just after the war.
    No more on that subject eh? Unless it is really intelligent.

  297. 297
    nell says:

    I’m not the numpty darling – Bliar will be if he accepts the EU President’s job for 4/5 years????

    Look how much he will lose financially:
    1) His ‘speakers’fees month on month
    2) Money for being the middle east envoy he will have to give up
    3) the commisisons he will have to forgo that he might have earned from people like Tesco’s who will pay him for his contacts which he has gained being a Middle East envoy!!!

    Not to mention finances coming in from his two , very secretive companies called Firerush and WindRush.

    And also not to mention the monies/expenses he gets from his Faith Foundation.

    No wonder he and his gotslob wife own some five or is it six top of the market houses in more than one continent??!!!

  298. 298
    Anonymous says:

    Fuck off where?

  299. 299
    Ratsniffer says:

    But NuMarxists want misery – they thrive on it – and misery means control, with McSnotty constantly claiming he’s going to save our arses.

  300. 300
    nell says:

    Why does gordon want a SUMMIT in January to discuss an exit strategy from Afghanistan when , as the MoD says,” they” meaning ‘Labour’ have no intention of exiting Afghanistan in the next five years.

    gordon, as CNN is saying , simply wants a SUMMIT in London in January, because he wants an internatonal photo op with Obama!

  301. 301
    Esther says:

    Vote for me, vote for me. I’m a celebrity and everone loves me so you have to vote for me so I can put it all right.

  302. 302
    Mr. Nobody says:

    Inflation is the danger, not deflation.

  303. 303
    If I could buy a wheelbarrow says:

    What size shout it be

  304. 304
    Mongrel says:

    Like the Japanese did for the first 6 or 7 years of the 20 year nightmare. QE does not work – it’s purely theoretical. This may be fortunate as it saves us from a Zimbabwe situation, which is what you get if you print money and then steal it to spend.

  305. 305
    Puzzled Wage Earner says:

    The weird thing is that we borrowed so much, and yet consumption actually fell. In the UK we borrowed just to maintain our standard of living…

  306. 306
    thick as thieves says:

    said the old queen.

  307. 307
    nell says:

    DaMassa ?????—— YaMean gordon?> or mandy? or Whelan or Twatson or militwit or D’Main man EdBalls!!!!!

    Or we could be sensible here and say how long do we have to put up with this idiot labour crew and how soon can we vote them all out of office???!!!

  308. 308
    Moley says:

    QE has been used to buy Government debt, (Gilts) i.e. The Bank of England is lending the Government money.

    What is critical is the maturity date of the purchased gilts.
    When the gilts mature, the loan has to be repaid by the Government, which means that if the debt is rolled over, another gilt has to be sold to take the place of the matured one.
    If the B.o E gilts mature at a time of high budgetary deficit, interest rates will have to rise sharply to fund the increased borrowing.

    If the purchased gilts are long dated, the B.o.E might be able to find another buyer, but the market will again be influenced by the amount of new debt issuance at that time.

    Will the B.o E itemise its gilt holdings in terms of maturity date and coupon?

    What if the Government can’t pay and defaults on the debt held by the B.o E.?

  309. 309
    Bill D'Sarse says:

    Hah… not exactly the forte of the one eyed cun’t in number 10 either!!!

  310. 310
    julian norwich says:

    “3) the commisisons he will have to forgo that he might have earned from people like Tesco’s who will pay him for his contacts which he has gained being a Middle East envoy!!!”

    So how many contacts is he gonna lose out on if he doesn’t become President then, and why is Brown still pressing for him to win the post?

    Blair as President is a done deal.

  311. 311
    North, but not Scotland says:

    I think you are correct. It would have been better to let the market take its course. Small savers would have been protected. Some pension funds would have suffered, but not as much as they have from Browns grab. The pain would have been greater, but it would have been history by now. As it is, most peoples future will be shit, but the likes of Fred Goodwin and many more like him, like those that ran Northern Rock, are minted when they should have been skinted. It wasn’t about getting the country out of recession, Brown and Darling were looking after their mates in the Scottish/Northern Banks instead of the dim fuckers that voted for them.

  312. 312
    Bill D'Sarse says:

    Dont worry gran, you’ll be fucking dead soon anyway, you’ve had a good innings, you northern labour voting old sow!

    Now lend us a fifty….

  313. 313
    mad max says:

    Tune in next decade and find out….if the electric is still working.

  314. 314
    The Ape man commeth says:

    Don’t worry Nick Robinson has just anounced on News at ten that the Scotish monster will “remove anxiety from us all” .

  315. 315

    I never missed voting until now…

  316. 316
    Vietghanistan says:

    there is no exit fucking ‘strategy’

    it’s a case of see if Obama pumps in more troops and hope people won’t notice if it gets worse

  317. 317
    New Labour steals savers money to give to the feckless says:

    He who is in power, controls the statistics the ONS releases.

    So thus, the inflation rate is record low – rejoice!!! The UK pound is a fucked currency, pensions smashed, savings devalued into oblivion by low interest rates. The shop prices for food and fuel keep on going up, and imported goods are going up in price from the MASSIVELY devalued Pound (if you’re a canny shopper you WILL notice the price movements and shrinkage of pack sizes). 300 year historic record government debt which the taxpayer never asked for to save failed businesses (banks) that should have collapsed. Quantitative Easing (printing money) further smashing savers savings and the UK currency internationally.

    On the flip side, idiots are buying housing again like it will start to go out of fashion, people still spending on credit cards, people scrapping / buying (foreign) cars on credit.

    This recession, with these New Labour crooks, the savers are paying for the reckless. When the savers money is devalued to oblivion, there will be no other method to bail out the UK economy.

    THIS is what New Labour has done to the UK economy. They have always hated savers for their ability to not rely on the state. Now their revenge is complete, most will in some way have to rely on the state, and so their vote will be controlled.

    New Labour 1, Democracy 0

  318. 318
    Furious Belgians for Van Rumpy Pumpy says:

    Paxo and Newsnight hammer the Belgians
    and why not?

  319. 319
    Moley says:

    Here is a nice extract which provides the flavour.

    The accounts of Windrush Ventures No 2, a limited liability partnership, show it received £6,436,000 “in connection with management services that it has provided to Windrush Ventures No 3″. Windrush Ventures No 2 also received a “share of the net profits of the LP [Windrush Ventures No3], amounting to £350,000″.

    The accounts also show Windrush Ventures No2 then “paid £6,436,000 for management services that were provided by… Windrush Ventures Limited”.

    I hope Mr Blair is duly grateful to the poor gullible working classes who payed to propel him ever upwards, widening the gap between rich and poor in the process. A microcosm of what the socialists have done and why the gap between rich and poor has widened.

  320. 320

    I wonder when they’ll ban private ownership of gold? They already nailed the other important G – guns – and the final one – God – ain’t going to do anyone any fucking good when this shitstorm gets rolling.

    Amazing isn’t it? More than a hundred years the socialists have been trying to destroy this country, and the one who finally manages it is a fucking demented halfwit like Gordon Shithead Brown.

  321. 321
    Robert Mugabe says:

    “What if the Government can’t pay and defaults on the debt held by the B.o E.?”

    You print some more.

    Getting the hang of this yet?

  322. 322
    Moley says:

    I think I prefer the way that Cameron and Osborne earned their millions to the Blair way.

    New Labour take note; it might not be a good ideas to keep on about the wealth of the Tory front bench. These remarks will turn round and bite you.

    Does Blair pay UK income tax?

    I think we should be told.

  323. 323
    Bill D'Sarse says:

    Seconded. Much fucking better than back in UK.

  324. 324

    Same purpose as always Engineer; to ensure they keep on top. There are billions more proles than there used to be, they’re better educated and better connected. Keeping that rabble in order is a lot tougher than in past times. Can’t use a scary mask and well-timed eclipse any more. Now you need 24/7 rolling propaganda, wars and rumours of wars, entire false flag nations, fantasy ends of the world on at least a five yearly cycle.

    The principle role of every world government is now, if it has ever been any different, preserving their own status. To do this they and their media Yangs concoct meaningless political divides to substantiate claims of democracy, division between differing shades of the same power elite. Soon new fag papers – nanorizlas – will need to be developed, simply to allow something to divide our political parties. They are all fuckers. They are all our enemies. They will all face a fucking hard rain one day soon.

    S’gonna be a bumpy ride…

  325. 325
    Moley says:

    So that’s why they increased the amount of QE.
    They will reach the stage when they cannot stop.(If they are not there already).

  326. 326
    Moley says:

    I am sure that widespread gun ownership is very much on the mind of the American President.

    He cannot ignore it.

  327. 327
    Mr. Nobody says:

    Murdoch’s useless box telling me (yet again) that the channels I’m paying for are unavailable. Also, the channels that are free. Blue screens everywhere. I’ve had new boxes and none of them last long before they go tits-up. Sky is such a load of cheap bollocks, I’m going to cancel. What a pointless load of shit, even Sir Clive Sinclair’s hardware was more reliable than this.

  328. 328
    gone fuckin mental says:

    right chumps this nothing to do with politics ,just a cheap laff

  329. 329
    The Beast of W9 says:

    Britons convicted of pigeon tossing
    6 hours 36 mins ago

    Two British men have been fined by a court in Poland for pigeon tossing.
    in historic Krakow’s Renaissance market on October 24.

    The pigeon tossers, both aged 24, from Ulverston and Barrow-in-Furness in Cumbria, appeared in court on Tuesday and pleaded guilty.

    Just how does one “toss” a pigeon ?
    If you threw it into the air surely the fucker could fly away?
    Or did these chaps wank it off in public?

  330. 330
    Heir to Blair (without the hair) says:

    Gordon’s socialist tendancies were to the fore when he bailed out the City and the Banks

  331. 331
    Ditherer Brown (known in the City as Brown Bottom) says:

    Well spoken Mr Patani. You have come to understand my economic philosophy perfectly.

    I believe it was Keynes (and his followers) who said spend spend spend to keep us from the horrors of deflation. And if you don’t have the money to spend go and borrow it and then spend it.

  332. 332

    IF BROOON CAN,T Read@Write What Made Anyone Think
    he could fucking add up ?

  333. 333
    Susie says:

    Those Euro lottery winners with their £45,000,000 in the bank earn just £2,000 a week interest.

  334. 334

    Why the fuck should we pay tax for something None of us want ?

  335. 335
  336. 336
    caesars wife says:

    whats an asset value then ?

  337. 337
    caesars wife says:

    so is it TTFN (Ta Ta Finances of Nation) ?

  338. 338

    Good Evening? Morning Guido

  339. 339
    caesars wife says:

    well you need a large pan , some olive oil and good hand eye cordination , opps sorry you said pigeon tossing , I mis read it

  340. 340
    Number 7 says:


  341. 341
    Number 7 says:

    MB that is

  342. 342
    Number 7 says:

    Some of us recognised a thieving crook before 1997!

  343. 343
    GWAE says:



    The UK inflation rate again “surprised” to the upside today, registering at 1.5%. As the above chart shows, the UK now has by some margin the highest inflation rate in G7. Were it not for the temporary VAT cut – which takes about 1% off the current CPI rate – the rate would be moving quickly above the Bank of England’s target of 2%. It would seem that the deflation threat, used as justification for the Bank of England deciding to finance the Government’s deficit this year through printing money, has not transpired. A severe recession and rise in unemployment has hit the economy, but this seems to be one where wages stagnate but the prices of what we consume continue to rise.

    While the spin is that this rise is caused by temporary factors related to energy prices, the details tell a different story. As the above chart shows, two thirds of the components of the CPI index are running above the Bank of England’s 2% target rate. With airline duty rising sharply, train fares rocketing, petrol prices soaring, booze taxes rising by 9%, and a reversal of the VAT cut coming in January, there’s no lack of upward pressures to inflation. It is conceivable that the CPI rate could move well above the 3% trigger for the Bank of England Governor to write a letter explaining why printing a huge amount of money has led to the “surprise” of excess inflation in the New Year.

    The big problem for most people is that there is very little chance of getting a salary hike to pay for this. Those not having the good fortune to be working in the public sector or for banks are likely to see a second year of pay freezes or cuts. Standards of living simply decline as people’s earnings are worth less……….

  344. 344
    Number 7 says:

    Let’s rebuild Hadriann’s Wall

  345. 345

    You are a thicky.

    That’s O.K. Things will improve with lots of study. Good luck and go you!

    It’s blog entries like this that keep me coming back and the window lickers bemused. Well done that Gaydo. You keep on telling the cripples. Free markets. Real Money. Democracy. And a spliff for every baby.

    Top stuff.

  346. 346
    madasafish says:

    I’m not convinced it is the hyper-inflation bogeyman we need be fearing. The deflationary effects of the credit crunch failed to really take a hold of the British economy because the B of E pushed interest rates down to zero which has given the massively over debted UK consumer some breathing space.

    Unfortunately, instead of using this time to rebuild their balance sheets, the lemmingesque masses are being told to party like it’s 2006 and all is well with the world. It will be the declining value of sterling that will force the B of E to raise rates which will devastate the British consumer.

    Result – the worst of both worlds; rising interest rates with declining asset prices. People will finally, very painfully relalise that 3 bedroom semis in Bury are not really worth 160 grand +.

    Guido is right, deflation can be a good thing, but the deflation that Britain is facing is anything but good. The debt burden (public and private) will simply get bigger and more burdensome, retarding any growth. Let’s hope Guido and Niall Ferguson are right, because if a deflation takes hold, we’ll be looking at the 70s and early 80s as the good old days…

  347. 347
    madasafish says:

    Ruth Kelly’s play thing? I bet you’ve got some stories…

    “Hugely increased money supply leads to hyperinflation” – this is true as long as the speed in which we spend that money (velocity) remains constant (or increases); however, as the MS has increased recently, the V of money has decreased at a quicker pace, hence falling inflation.

    As long as this remains true, the fear is deflation, NOT inflation. However, if the V picks up; standby. Personally, I don’t think it will, because Britain is mired in too much debt and debt has to be repaid, or defaulted on at some point…..

  348. 348
    1978-2009 says:

    What’s all this complicated economic shit about?

    We want tits and totty, ya twat!!

    If we wanted complicated shit we’d read a clever person’s blog…

  349. 349
    Susie says:

    Lord Brown of Kilsquaddies more like.

  350. 350
    Frankly Bonkers says:

    And don’t forget the New World Order Lizard People who stage 9/11 with a holographic planes

  351. 351
    Cockney Christian says:

    sovereign debt free money is the only answer

  352. 352
    Cockney Christian says:

    spelling is a different skilll to keyboarb mastery, it has to be said

  353. 353
    Cockney Christian says:

    Who’s haddriann? Sorry, I couldn’t resist it

  354. 354
    Cockney Christian says:

    the banks dont give a fuck, debt is an asset to them secured on the tax revenues of the state, they make money all roads up and get to destroy Britain in the proces as an added bonus…. trebles all round.

  355. 355
    Cockney Christian says:

    fuckin paxo is a bigger troughing hypocrite than the worst mp and he’s ashamed of being a Yorkshireman, the traitorous lickspittle

  356. 356
    Cockney Christian says:

    I think he means that the banks and Omaha are going to outline the details of his exit strategy

  357. 357
    Weimar says:

    Hey Aussie, he’ll have to find it first.

  358. 358
    Nick says:

    If the Americans think that Britain is economically best placed in Europe then there is truly no hope for us all, other possibly as a US/UN/Commonwealth Protectorate.

  359. 359
    Inspector Cyril Blake says:

    sorry Charles but your statement

    “I can list other policies like, say, internet security to an NHS which is reformed into a preventative system, which Labour seem to have listened to and have a grip on.”

    is wrong. I worked on NPfIT and I can assure you that, thanks to the rigid blanket of poorly-thought out and downright foolish specifications that the Govt foisted on the project, there are glaring security holes that have still not been addressed. FFS man the NHS still uses IE6 because the rules say that no other browser has been “mandated” – what a joke. As for Liebore’s other IT related policies and projects – each and every one a failure and money pit. remember the famous quote from last year “the servers will be secure because they won’t be connected to the internet” ? F*cking dolts.

    As to the point of the article that we’re discussing, take a look around you and seriously tell me if after over a decade of Labour we’re better off. If you think that we really are, then we should do a house swap because I’d like to live in your privileged residence in Chelsea, and you can live in my semi in Stoke and deal with the feral teens who kick sh1t out of my car every weekend. Maybe you’re happy on your £40K a year index-linked non-job supplied by your Labour masters, the rest of have to make do with normal wages that haven’t increased for 6 years, no final salary pension, and the constant threat of redundancy – thanks to Labour. I console myself witht he thought that, after next June they will be in the dustbin of history and if we’re very, very lucky, there will never be a Labour govt again (and fyi I was a Labour Party member for 20 years, idiot that I am.)

  360. 360
    Inspector Cyril Blake says:

    you’d think that, given their last bungled efforts to run the country (well they did manage to run it into the ground) either they’d have learned or we’d have learned (not to vote for them) Every time the bl**dy news about the economy or crime or the bl**dy BNP or immigration is on, I think that it might as well still be 1979 not 2009. Labour don’t change, they were sh1t then, and they’re sh1t now.

    Sod this, I’ve had enough of this third world cesspit country that bl**dy Labour have turned us into. Me and Mrs Blake are off as soon as we can.

  361. 361
    Inspector Cyril Blake says:

    you really do talk some rubbish, MB; do you actually live in the real world with the rest of us, or is your 5-star padded cell so luxurious you won’t leave it? Do you actually have a job and a family to look after and provide for? I doubt it because if you did you wouldn’t talk such utter bilge. Even if it’s just a put-on to wind people up, it’s not funny anymore.

  362. 362
    Nick says:

    I’m not afraid of Blair becoming President, >quitereally< radical set of spending cuts. To balance the books the benefits bill will have to be cut brutally. Once the destitute on the streets start rioting then Labour will be history – forever. We can then elect a government that will allow us a referendum on Europe.

  363. 363
    Nick says:

    Don’t know why it didn’t post properly – try again!

    I’m not afraid of Blair becoming President, _quite_ the opposite.

    When a disgraced UK politician is installed as the unelected figurehead of an unelected, undemocratic, expansionist kleptocracy it will do wonders for the popularity of an IN/OUT referendum!

    Similarly, at the risk of sounding unpatriotic and callous, I may well vote Labour at the next election. Cameron (who described himself in 2005 as ‘Heir to Blair’) is an utterly compromised member of the political class, and has ‘modernised’ the Tory party in the same way that Labour was. Neither Cameron or CCHQ placemen deserve to be in power. UKIP (my first choice) aren’t realistically going to hold the balance of power, although a vote for them would probably be one less for Cameron. However a vote for Labour will allow them to stay in power until the IMF imposes a _really_ radical set of spending cuts. To balance the books the benefits bill will have to be cut brutally. Once the destitute on the streets start rioting then Labour will be history – forever. We can then elect a government that will allow us a referendum on Europe.

  364. 364
    Nick says:

    I don’t know about the activities of pro World Governments, but I do believe that the current crop of UK (and other) politicians are predominantly members of the political class. They have deliberately abandoned their links to their own traditional memberships and have much more in common with each other than in the electorate. So either don’t vote for the 3 main parties or tactically vote in such a way that whoever gets in is eventually forced to readopt sound fiscal policies.

  365. 365
    thick as thieves says:

    said the spastic.

  366. 366
    Lola says:

    Fair enough. I over-simplified. But eventually the reduction in asset values will lead to less ‘money’ being needed (not very well put) and the supply of money will reduce. Gordon over-supplied money at too low a price, as did various other international governments pursuing leftyish or interventionist policies. This money was used to buy ‘assets’ and drove up their prices. These assets will now decline in value / price and be sold at a lower price. The end result is that lots of money, or wealth, if you prefer will be destroyed. The economy will therefore ‘need’ less money.

    I am also not convinced that there is any ‘right’ level of inflation, however low – if you hold that inflation is a function of the over-supply of money. That is that the central bank does not run sound money policies and does not try to keep the amount of money in line with the needs of the economy. But simply allows ‘broad’ money to expand to create bubbles, so beloved of lefty and other irresponsible politicians.

    213 – said it all much better than me. It wasn’t ‘light touch’ Gordon. It was wrong touch (if you mean Regulation) and excessive. From personal experience I can categorically state that the FSMA 2000 introduced the most inetrventionist, nationalisation by Regulation policies ever. And predictably they failed.

    I contribute here because I like having my thinking (!) tested by contributors often more learned and erudite that I.

  367. 367
    Lola says:

    Hooray for the free market economy. Pity Gordon screwed it by not having a clue.

  368. 368
    Lola says:

    I have always thought Blair was just a talented snake oil salesman who got lucky – and just couldn’t believe it. I have the same opinion of Obama.

  369. 369
    Anonymous says:

    This Vid looks like it’s still up, trouble is I can’t believe no one has understood the Implications and not bothered to comment.
    So maybe it looks to me like it’s up, but not really if you see what I mean, I wouldn’t put nothing past these Globalists.

  370. 370
  371. 371
    John Smith says:

    A(n) Hariddan who wanted to have an apartheid system around the first Century AD.

  372. 372
    Archie says:

    “Pass the hot milk, please”

  373. 373
    Archie says:

    No, more a sort of Meccano!

  374. 374
    Archie says:

    So do I buy GBP, Euros, or…………..?

  375. 375
    Anonymous says:


  376. 376
    Resigned to a UK broken and ruined by Labour says:

    ONE new helicopter arrives in Afghanistan. No doubt after consultation with the MOD, the fucking BBC headline becomes “helicopterS arrive in Afghanistan”!

    You couldn’t make it up!

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