+ + + CPI 4% Inflation – Double Bank of England Target + + +
+ + + RPI 5.1% Shoppers Feel the Squeeze + + +
So have you stocked up on beans or gold yet? Have you taken Guido’s advice?
Inflation is always and everywhere a monetary phenomenon, if we don’t figure out a way to exit QE we will inevitably suffer double digit inflation. This is not an accident, it is, as the Chinese have pointed out, the deliberate intention of policymakers in Washington and London to inflate away their debts. The cost of that policy will fall hardest on savers and pensioners who will be the collateral damage of this policy. It is entirely cynical of Mervyn King and Ben Bernanke to scaremonger by talking of a bogus threat of deflation…