October 7th, 2011

Inflation: Printing Error

On the Today programme this morning George Osborne dismissed the inflation threat “Actually the problem at the moment is too little money… That’s why the independent monetary policy committee came to its judgement” Is that really true?

The MPC has failed for 60 months in a row to meet its inflation target of 2%, inflation will probably come in at 5% next month. That clearly isn’t a deflation problem, it is an inflation problem which gives savers and pensioners on fixed incomes negative real interest rates, deliberately halving the real value of their pensions in little over a decade. That isn’t an unfortunate consequence of government policy, it is a deliberate policy aim because it also halves the government’s debts in real terms as well.

Those dangerous radicals at SAGA, the retirees organisation, are describing QE as aTitanic Disaster,

“QE2 will damage pensions, impoverish pensioners and ultimately risk another crash. Inflation depletes spending power. It does not create growth. This inflation has undermined confidence and caused consumers to retrench, which has actually weakened the economy. The authorities must take heed of these dangers before it’s too late.”

The Monetary Policy Committee is simply no longer even trying to contain inflation, the Federal Reserve in Washington and the Bank of England in London are, in concert with their respective treasuries, deliberately letting inflation go to solve the government debt crisis on the backs of pensioners and prudent savers. The only reason they don’t say it explicitly is because if inflation expectations were to be higher it would feed, reflexively, into even still higher inflation. That is why Mervyn King has disingenuously claimed for 5 years that inflation is “a blip”. Some blip…

This from the party of sound money will hit a key voter demographic hardest, the demographic that is most loyal in voting for the Conservative Party, affluent retirees. David Cameron’s conference speech last week was nowhere near as good as his 2008 speech:

I believe that government’s main economic duty is to ensure sound money and low taxes. Sound money means controlling inflation, keeping spending under control and getting debt down. So we will rein in private borrowing by correcting that big mistake made by Gordon Brown, and restoring the Bank of England’s power to limit debt in the economy.

In government and at the Chancellor’s behest we are seeing the printing of money on a scale never seen before, inflation is uncontrolled, spending is rising, debt is being encouraged to rise. The Chancellor plans to facilitate more private borrowing from the Treasury by poor corporate credit risks and the Bank of England now holds on its books a third of all the government debt outstanding with no credible plan to unwind the hundreds of billions in QE driven government gilt purchases. Sound money? What a joke.


146 Comments

  1. 1
    jgm2 says:

    Okay. Who do I have to see to get a cut of this 75bn in printed cash. I can set up a company JGM2 Airlines with no assets and claim that all is holding me back from expanding the business is the inability to buy (say) British Airways on account of not having 5bn quid (or whatever) which the wicked banks refuse to extend to me.

    Then use the free money to buy British Airways. Then promote myself to Chairman and CEO and take a salary of (say) 2 million quid a year for doing fuck-all. Just delegate the day-to-day running to the guy who does it now. I really don’t see what’s wrong with this business model so – who do I apply to for my 5bn quid. To help the economy you understand.

    • 8
      Spartacus says:

      And like the banks you can borrow at 0.5 pct and lend to house buyers at 10.0 pct.
      Good deal, i’m for some of that!

      • 10
        Public Sector Parasite with enormous gold-plated pension & 5 hour working week says:

        This is all down to Labour’s debt. The Government can only get out of this mess by using inflation or cutting spending. Why aren’t they cutting the welfare spend?

      • 11
        Anonymous says:

        Ken Clark sorted out the economic mess during last Conservative government, it might be time to make him Chancellor of the Exchequer again. Whether you like his view on EU or not he will be the best Chancellor of the Exchequer this country can have. If he has been the Chancellor we will not be in this mess.

        • 59
          Lord Lucan says:

          Problem is, only options the government has when it borrows too much are default or devaluation. So Osbourne has taken the standard playbook and calmed the Gilt investors first with austerity and then told the BoE to get inflation up and the Pound down.

          Standard stuff. Only thing that either Tories or anyone could have done. Rest is just politics and how to sell 5-10 years of pain to the electorate…

          • Archer Karcher says:

            Not true, they could cut spending. Instead they decided to increase spending and are still overspending on completely useless ‘solutions’ to non existent problems, as well as hosing our money all over the place, in countries that will NEVER pay us back.

        • 124
          Spartacus says:

          Ken Clark – you are joking right? He would have us bail out the piigs single handed.
          Like most of the rest of the country, no not at any price

      • 15
        Dick the Prick says:

        What the fuck happened to the Tory party? Taken over by a bunch of teenage fucking Liberals with as much grip on reality as a drug addled crack whore. It beggars belief aswell as the nation. Contemptable ejeets.

        • 37
          Anonymous says:

          The problem is Tory leadership is run by oiks, when did you last have people like this controlling the Tory party. These people haven’t got nothing in common with the great Tory leaders we once had.

      • 38
        sockpuppet #4 says:

        Probably only a good deal if you are certain that no-one will default.

        I think I’ll put a tenner on Bono becoming pope instead.

    • 27

      Printing money is a waste of time. The Operational costs of the Phoney War on Drugs and the War in Afghanistan will suck most of it up the rest will prop up the GOLD PLATED PENSIONS of the Public Sector.. None left for the Banks to lend to the Private business. The government have bankrupt the man in the street with TAX ON TAX ON TAX, He cant afford to buy anything as he has been squeezed through the HIKE in Energy Costs to pay for the ongoing inability of government to look at itself and stop the ROT.

    • 31
      Tony Bliar is a complete cunt says:

      If you find out could you let me know at imacompleteandutterchancerthatfooledthepublicformypersonnelgains@yaho.com….

    • 91
      Drew Peacock says:

      We culd hold a referendum and leave the EU but KIPPER CAMERON thetwo faced gutless wonder would rather keep giving the EU all our cash

    • 92
      Up sh1t creek says:

      Quantitative Easing, a desperate act by a desperate government. Welcome to Mugabonomics.

    • 131
      The Observer says:

      Join the long queue

  2. 2
    Steve Miliband says:

    Sound money – go to Liverpool?

  3. 3
    Billy Bowden is the greatest umpire ever ! says:

    If the USA can do this, so can we surely! don’t forget occupy the London Stock Exchange on 15th October!!!

  4. 4
    Billy Bowden is the greatest umpire ever ! says:

    “Sound money? What a joke.”

    I have always maintained that David Cameron is a one-term Prime Minister.

  5. 5
    Anonymous says:

    Borrow enough Money to buy yourself completely out of Debt ??

  6. 6
    sockpuppet #4 says:

    Isn’t it possible to have both “not enough money” and inflation?
    After all, a lot of inflation is down to effects of the week pound.

    Is there a word for that like “stagflation” or noinvestmentflation or plainfucked?

    • 14
      Ed Balls says:

      “week” pound? So weak!

      • 21
        sockpuppet #4 says:

        yeah. A typo. I knew it was a mistake hoping for some sort of explanation from someone who knew about economics.

        • 32
          Gordon Brown says:

          Well, hullo. You see, it’s all a case of politicians being bent spivs, unlike me, ofcourse. Sarah, Sarah, fetch the turkey baster – it’s your lucky day!

        • 34
          Anonymous says:

          I thought it was deep insight into our future

      • 81
        Audemus Dicere says:

        Actually “week pound” is a good description. Very soon the BoE will be printing limited validity £100000000000000000000000000000000000000000 bank notes just like the Zimbabwe Reserve bank was doing.

        “I promise to pay the bearer £100000000000000000000000000000000000 but only in the next week (after that it will be worthless, so you are on your own. Signed: Uncle Merv”…

    • 90
      The Paragnostic says:

      Yep – and it was called ‘stagflation’ last time it happened in the 70s.

      Only Maggie could sort it out, and she had to raise taxes and cut spending to do it, and lots of people whinged, including me at the time, as I was but a callow youth.

      The issue that the BoE are dealing with isn’t a lack of money in the economy – there’s plenty of money around, it’s just stuck in the box marked ‘property’. During the Brown credit boom, all the spare cash was soaked up by property prices, with the result that any slowdown in activity results in an immediate decrease in what economists term ‘velocity of money’, or what a sensible person would call ‘churn’, as it represents the rate of flow of money around the economy.

      That’s why Dave had to tone down his ‘pay off your credit cards’ bit in his speech – the economy (even with £75bn of funny money shoved in) is short on liquid assets, and any diversion of income to payment of debt will inevitably lead to a reduction in demand. Equally, any improvement in peoples’ situations will feed through more slowly, as they are more cautious about spending what they do have.

      Maggie wasn’t faced with this problem to the same extent, as property ownership 30 years ago wasn’t as widespread as it is today, so most of the assets of the lower 50% or so earners was held in savings, which could be used to keep demand up during the inevitable bad times.

      In short, the BoE is having to make up for the lack of savings caused by Brown’s credit boom driving money out of the productive economy and into property.

      And yes – unless property prices return to a sensible level (with credit made harder to get), we are, as you say, plainfucked.

      • 128
        Spartacus says:

        Fathcher had to raise taxes and cut spending to do it . .

        Pardon? I remember her
        – raising taxes from labour’s 97.5 pct up to 40 pct.
        – pitching tax at a level there was no need to be part of the black economy
        – taking the country from the union’s grasp to an elected government
        – cutting waste

        Result was i started to get paid for my work rather than where we are now – taxed senseless.

        You may have been a calow youth, but history is something they teach at school.

      • 133
        The Observer says:

        Excellent – pity about Spartacus falling on his own sword, as he normally does.

  7. 7
    Raving Loon says:

    Inflation is just a round-about way for the government to default on its debts. QE is an admission of failure, not something to be lauded.

  8. 9
    Tony E says:

    Let’s be absolutely clear though, are price inflation and monetary inflation are being seperated in the B of E’s calculation here?

    There is obvious price inflation – a lot of it driven by external cost prices (external to the UK from imported inflation, especially food and fuel prices). But what is happening to the money supply?

    In a fiat currency system, it is my understanding that all growth in the economy is really expansion in money supply, taken up by the activity of the population through business lending. So thereby without growth in the money supply there can be no recovery – no growth.

    As a system, this is a scam set up to transfer money from the individual to the institutions, because the money supply is an instrument to boom and bust economies, and credit control allows institutions to take advantage of busts to take control of assets bought in a boom, but at bust prices. It is not CAPITALISM – it is a twisted form of CORPORATISM.

    My guess is that as we are all playing the game with ‘fake’ money, then the chancellor is playing the only game in town at present – but all that will hapen is that the pound will sink and those of us who rely on imported food and energy will just feel a lot poorer.

    The can just got kicked down the road…….again

    • 102
      Audemus Dicere says:

      Tony E,

      An excellent summary of the present position, if I may say! … and, yes, you are correct: the system is a scam and the boom and bust cycle is deliberately created in order to expropriate assets at “fire sale” (or NIL) prices.

  9. 12
    bergen says:

    Sadly Cameron and Osborne are starting to resemble Heath and Barber as a team at 10/11 Downing Street.

    I didn’t think we’d see the return of massive stagflation in my working life and certainly not under a non-socialist administration.

    • 20
      Call me Infidel says:

      Which is much as many of us predicted. Cameron is as much a europhile as Heath and just as ineffectual.

    • 29
      Archer Karcher says:

      ‘non-socialist’

      Dave and Gideon are not so non-socialist as you might think.

  10. 13
    well its a thought says:

    I suppose Camoron after his green/African speech will now be looking for a new job, give us chance to vote this blue Liebour twat out, him and his mates are not true Conservatives.

  11. 16
    James says:

    Guido,

    I agree that QE doesn’t solve any problems.

    The basic issue here is that policy makers know that the economy is very weak due to astronomical levels of private debt inherited from Gordon Brown. The banks are also still very weak and probably going to start making losses again. For both these reasons banks are not going to be lending very much. This is is deflationary and the BoE seems to think QE is a good response to this.

    At the same time we have had something of a commodities bubbles which has caused inflation on a temporary basis.

    I suspect policy makers are currently panicking because they fear the economy is about to fall of the cliff again. Personally I suspect there is no painless way out of this mess.

    • 25
      sockpuppet #4 says:

      “astronomical levels of private debt inherited from Gordon Brown”

      Ah yes of course, the playground excuse. “he made me do it”.

      • 45
        James says:

        have a look at what happened to debt % GDP under Labour

        http://orderorder.files.wordpress.com/2010/02/debt-gdp.jpg?w=480&h=386

        This is why we are totally fucked.

        • 46
          sockpuppet #4 says:

          And the big boy made you do it?

          • James says:

            what are talking about?

          • sockpuppet #4 says:

            Private debt is private individuals fault.

            He might have left the sweetie shop door open, but that sort of suggests that the population is a bunch of dicks who need to be told what to do like a bunch of children. Which might be the case but its not polite to bring that up.

            That what me talk about.

          • James says:

            ha yes I agree – it is the fault of the person borrowing and the person lending in a free market. If you make a bad bet as a lender you lose in a free market.

            Except in this case there is no free market as the bankers know that they have various implicit and explicit government guarantees. In exchange for these guarantees they also have various government regulations to make sure they don’t abuse their position and get up to no good. In such a position it is in the bankers interest to make as many loans as possible and then pay yourself bonuses based on the resulting fictional profits.

            In the past the BoE would at least realise what is going on and put a stop to it. However Brown passed banking regulation to the FSA which simply didn’t understand how banking works. They let Northern Rock, for example, get away with 125% mortgages.

            At the same time Brown was going around telling people he had abolished “boom and bust” and telling the City what a wonderful job they were doing. He was also congratulating himself for presiding over such a wonderful economic miracle. He either didn’t realise this was a bubble leading to disaster or he did realise but decided to let it carry on in order to get re-elected.

            However, the BoE was not blameless as it let credit growth get out of control and should have put up interest rates to curb the housing bubble.

    • 39
      Steve Miliband says:

      Agreed
      We are doomed, as is Europe and the US. The Emperor’s are not wearing any clothes.
      The Liabilities that the Banks hold are vast, from personal overdrafts to dodgy Irish property schemes to EU governments. No wonder they don’t want to lend any money.
      Everyone is living hand to mouth.

      If you have any money, spend it. It’s going to be worthless soon enough

      • 134
        The Observer says:

        Interesting.
        But how does socketpuppet 4 (whatever happened to 1-3) explain the US housing crisis when Clinton opened the door for Freddy Mac and Ms Mae to loan to anyone, even if they were on benefits and could not afford it.
        According to socketpuppet it was the poors’ fault for taking on the loans to own their own homes. Incredible.

  12. 17
    Blue Eyes says:

    M4 has been falling. If you believe that inflation is purely a monetary phenomenon then we are staring at deflation.

    Inflation at 5% hardly makes Britain Zimbabwe.

    If you are that worried then start demanding your income in gold or Yen or BP shares. Use of the pound is not compulsory.

    • 40
      Lord Wayne of Trombone says:

      M4?

      Under Labour investment in roads was a joke.

      • 94
        misterned says:

        Broad money. Money that is in the economy, but which is tied up in long term investments, as opposed to Narrow money (M0) which is money in the economy which is readily available.

        I have been searching for charts showing M0 and M4 money over the past decade and have been unable to find any.

        However, with a simple view of how the money supply system works, the fact is that when the banking crash happened, banks stopped lending. (hence the name credit crunch) New money is created as part of these loans, this expands the money supply. When you take out a loan, you are not lent the interest that needs to be repaid are you? It is never created, but you still have to find it.

        This extra money required to meet payments + interest only gets injected into the economy with further lending. When the banking crash happened, the banks stopped lending and stopped creating enough extra money for people to meet their payments on loans and defaults are mounting.

        This shows that there is NOT enough money in circulation. Yes inflation is going up, because foreign goods we import as raw materials, fuels, foods, are going up because international demand (mainly from China, India, Brazil and Russia) is going up. This is forcing our inflation to rise IN SPITE of a reduction in the money supply.

        If there was more money in circulation, we would be in a boom. Exactly like when the banks were pissing money at borrowers and massively increasing the money supply at that time.

        To suggest that this new QE is going to cause Zimbabwe levels of inflation is just plain wrong.

        • 105
          Audemus Dicere says:

          “To suggest that this new QE is going to cause Zimbabwe levels of inflation is just plain wrong.”

          I have to disagree with this part of you post, Misterned. Continually chasing the “dog’s tail” of an insufficient money supply when other factors were combining to produce price inflation was exactly what got Weimar Germany into so much trouble.

          The Reichsbank was continually complaining that the problem was an insufficient money supply. The bank was correct in one respect, however the continued attempts to correct this problem through printing money were the trigger for the eventual spectacular collapse of the Mark. Eventually you end up with a situation in which there are countless sums of money in circulation, but it is all worthless (I think the total Germany money supply in 1923 ended up being counted in the sextillions – proper counting, not American style – but its total “value” was only a few million US dollars, clearly insufficient to allow the German economy to function at all).

        • 117
          Lord Wayne of Trombone says:

          dude

          there is no M0.

          Starts with M1

          M0 will run to Boris’ floating airport when it is built

          Your fancy note on economics does not look so good now, does it?

      • 135
        Financial Pundit says:

        M4 – Alway under construction

      • 142
        billyboy says:

        Yes. Mostly invested in “The road to Ruin”

    • 41
      We know who you are says:

      Jump, you banker fuck!

    • 49
      James says:

      that’s right.

      the underlying forces are deflationary as not much credit creation is going on at the banks and people are paying back debts

    • 77
      Juggler says:

      What’s so bad about deflation. Falling prices are good. Whether house prices, fridges or even bank balance sheets, gentle deflation is good for everyone… except people with big debts (like bankers, bloated government and buy-to-let landlords).

  13. 19
    Cato Street Conspirator says:

    I wish you people would make your bloody minds up. One minute you’re blaming the baby boomer generation for everything and saying they’ve robbed the young; the next minute you’re saying how terrible it is that the pensioners (the baby boomers are retiring now) are being made to suffer by this terrible QE. Wobbling around like that is usually called ‘opportunism’.

    • 33
      well its a thought says:

      Shhh someone has to blame somebody as no one seems to want to take the blame, they’d do better all in a circle shooting at each other.

    • 71
      Kitchener of Khartoum says:

      Though you might not think it to look at him, Mervyn King is in fact a baby-boomer. That being so, and he being possibly the worst Governor of the Bank in God knows how many decades, as one baby-boomer to another I sure as hell do blame him.

      He is in truth completely out of his depth in the job (a prime example of the “Peter Principle”), and apparently spends his time either undermining the government of the day, or brown-nosing it, or doing the same things with the Loyal Opposition. This flapping in the winds of chance and opportunity deserves the expression “make your bloody mind up” for sure.

  14. 23
    Nogbad the Bad says:

    They know that this is completely the wrong thing to do. It must be, it’s what Labour wanted to do so that confirms it. It hurts those millions who have saved up for their retirement, and makes the inevitable break-down of the system even worse. They have known that they were going to do this for months because they withdrew the last NSI index-linked issue. There is no point in voting for them again. At least Labour didn’t get your hopes up, because you knew that they would fuck it up.

  15. 24
    socialism has murdered 150 million human beings pride says:

    The only cause of inflation is Government scum printing money. They are debasing the coin of the realm making it worth less and less all the time. The amount of money is going up far faster than the supply of goods/services. Osbourne, like his scummy boss, is garbage.

    • 98
      misterned says:

      So, The international price of fuel (oil and gas) has no impact in the UK? Likewise the massive increase in demand on crops by the ever divergent tastes of the rapidly increasing wealthy Chinese forcing the price of food to sky rocket? The UK is immune to these things? And the fact that the rapid contraction of the money supply through the rapid raduction in regular private and business lending is somehow increasing the money supply?

      IF the money supply is increasing to massively, How come wage levels are falling, living standards are falling across the board and it has rarely been more difficult to get a loan? Those are signs of monetary contraction.

      • 114
        Jethro Tull says:

        Get an allotment or dig your lawn up or both. Grow as much of your own food as you can. Obviously you’re not going to produce your own flour or beef but you can grow one hell of a lot of what you eat.

        (Beef production is unsustainable anyway as it uses one hell of a lot of water and the cattle are fed on stuff that humans could have been eating.)

  16. 28
    Tony_E says:

    It would be interesting to see the money supply figures compared to cost price inflation for the last 6 months – and the Bank of England’s projections for the next year so that we could see the data they are basing tis decision on.

  17. 47
    Lady Virginia Droit de Seigneur says:

    It’s intriguing that people are only just catching on to this. It has been apparent for at least a year that Osborne is surreptitiously trying to inflate away the huge debt bequeathed by the incompetency and profligacy of Brown and Balls.

    The apparent contradiction between Osborne’s anaemic (or indeed non–existent) plan for reducing the deficit and the parlous state of government finances can only be rationalised by accepting that there is a plan to inflate the debt away.

    As Guido rightly points out there is real pain to this and it won’t be suffered by unproductive public sector parasites or the sort of sharp suited spivs who’ve been collecting bonuses off the back of Brown’s debt fuelled fiscal expansion.

    It will be suffered by those who have saved and planned for a rainy day or retirement. That is the real scandal of Brown’s legacy to Britain and one that Osborne does not seem to want to address.

    • 57
      James says:

      the main problem is massive levels of private debt and a housing bubble that occured under “no more boom and bust” Labour. Public sector deficits is a side effect of economy falling off a cliff as a result of the bubble popping and reducing tax revenues.

      It is difficult to see where any recovery is going to come.

      • 93
        Lady Virginia Droit de Seigneur says:

        You forgot the bit about Brown massively expanding public spending. He was borrowing £30bn a year when the City was booming and tax revenues buoyant.

        • 121
          James says:

          yes they were running a deficit during the bubble years when they should have been running a surplus. Apparently their belief in Keynesianism only emerges when it suits them.

      • 96
        The Paragnostic says:

        But the bubble didn’t pop – and there’s the problem.

        Too much money that people think still exists is in fact imaginary, but tied up in residential property prices. While Joe Blow thinks his house is worth 50% more than it really is, and banks have stopped lending at 5-6 times income to stupid people who want to join the property owning class, the velocity of money is inevitably reduced. Only a housing price crash can save the economy as a whole, and QE is the worst of all worlds, acting as a disincentive to property price deflation.

        The banks will never willingly allow the Ponzi scheme to fail – not while they have stupid politicians willing to sign away the taxes of the next generation in order to protect the assets of the current one.

        • 123
          James says:

          yes it has only partially popped so far. Policy makers are desperately trying to stop it as it would show the banks are even more insolvent than we thought.

          • McChannaman says:

            So the underlying forces are deflationary for the UK economy a whole. But the man in the street faces continued inflation in rental, energy, and food.

            James argues that this inflation is temporary and perhaps it should be. But it isn’t. Why? Food prices will keep going up as the world’s population explodes. London rents will keep going up because we are selling our property stock to the rich members of corrupt totalitarian states. Energy prices will keep going up because we are energy dependent on corrupt totalitarian states.

            The end result is a kind of spit-roast-flation in which deflationary forces humble the economy putting our man on the street in continual fear of his job. Meanwhile his costs of living keep on going up while wages are at best nominally level.

            Globalisation, 1990 – 2010, sacrificed democracy to the bubble economy and we will be paying for it in the years to come both in money terms and in terms of our freedoms.

  18. 48
    Conservative Voter says:

    Let’s hope that George Osborne focusses on the inflation risk and keeps his nose out of the planning system. Making enemies of Saga and pensioners, and the National Trust and the CPRE and their millions of members, seems crazy. All that David Cameron said after the riots seems to be getting forgotten if the planning focus switches from tackling urban regeneration before allowing out-of-town sprawl.

  19. 50
    Ryan says:

    We have to indulge in QE because we now have so much debt in the system that even if we all gathered together and handed all our cash over to the banks we wouldn’t be able to pay it all off.

    You need to read about “fractional reserve banking” which under current Basle rules allows the banks to create 10x more debt (in the form of numbers written on a bank statement that they pass off as real money) than they have in their vaults. Then all this bank funny money gets passed around the system so nobody really knows who has got what. But if all the cash we have is likely to be in the banks and the banks are creating 10x more debt with it, you can readily see that we can get into a state where the only way to pay off the total amount of debt in the system is to keep rolling over the debt – but that doesn’t work forever because the interest gets added to the debt so the debt just gets bigger. Only solution in the end is to print more money.

    The thing is you need to make this work for you. Don’t invest in cash (or at least not in cash which is being printed at a rate of knots). Invest in anything that is limited in supply. Gold, property, even shares. All these things tend to accrue in value in an inflationary environment. Property is great at the moment. Its cheap, loans are cheap, and with all that inflation the loans will look tiny in 10 years time. Furthermore lots of people are getting flung out of their homes because they can’t get pay their mortgage so they go straight onto housing benefit so they can rent the buy-to-let investment you now own. You can’t lose!

    The fact is that 10 years of the UK spanking the fractional reserve monkey has created a system where the banks actually own everything. Get on your knees and thank God for Mervyn King – if he didn’t have the balls to print our way out of this problem would be like Greece right now. If you want a make a stand about the unholy means by which banks con everyone out of their money then please do so after this financial crisis is over- you were all too silent when Labour were racking up the debt and the papers were claiming we’d never have to pay it back because we were in some new banking era never previously seen. No more boom and bust, remember? Hah!

    • 99
      The Paragnostic says:

      Your solution of investing in property will only add to the problem – it is the property boom that has acted as a sink for the overheating of the Brown credit boom, and until that pustule is lanced, we are fucked.

      You’re spot on about the FRB scam though.

  20. 52
    emperor van Rompuy says:

    Puppet Dave is only obeying his orders.

    You must stoke demand in the UK in order to increase the imbalance of trade with your trading “partners” in Europe. Zere is no alternative.

  21. 53
    Tee hee says:

    The Conservative action on QE vindicates Gordon Brown. He was right for the right reasons and did the right things because it was the right thing to do.

    Start the presses!

  22. 55
    dads for two aircraft carriers says:

    Couldn’t agree more Guido. What we need is sound money, good money chasing out the bad, tough companies learning to survive and more unemployment in the north. I mean it!

    • 65
      Cato Street Conspirator says:

      You mean North London I assume.

      • 110
        Audemus Dicere says:

        For once Cato Street, you are correct! Sacking all the Grauniad and BBC staff living it up at other’s expense in North London would be an excellent start…

        • 138
          BBC Auditor says:

          Already in the pipeline, though Thompson is still clinging on to his pension and those ghastly radio 4 presenters will still be seemingly in place for at least another year.
          Patten is so disappointing.

  23. 56
    Sophie says:

    The Conservative Party 2011: Continuity Labour.

    Vote UKIP.

    • 60
      Jasmin Alibi Cunt says:

      Fuck orf dickhead

      Vote UKIP so that your vote will prevent Conservative MP’s winning their seats such as the five who were denied a win in 2005.

      • 66
        Sophie says:

        Rusty Heathite social democrat Cameron is following exactly the same fiscal policies as Labour. Exactly.

        * Taxes are sky high
        * The state is bloated with hoighly paid non jobs
        * The Government is micro managing the economy
        * The Treasury is robbing the yet unborn British taxpayer of their prosperity
        * The Conservative Party refuses to cut our EU contributions or DFID.

        I will vote UKIP – voting for a cure, no matter how forlorn the hope of recovery, is much better than voting for the Labour / Conservative / Lib Dem disease.

        You are dismissed.

        • 76
          Arsehole wank says:

          You are a twat dickhead

          Denying the chance for the Conservative to have more seats helps the fucking Euro filth.

          • Nogbad the Bad says:

            The Cons could have had a landslide victory and huge majority if they had committed to a referendum on being in the EU (not just the Lisbon Treaty). If they had wanted the votes they could have had them.

          • Archer Karcher says:

            Didn’t Cameron tell UKIP to piss off when they offered to stand down in return for a referendum?

          • misterned says:

            Cameron did indeed reject that decent offer, and by so doing proved that he would rather see labour in power, and follow labour’s EU policies than give the people of this country their say in who governs Britain, by way of a binding referendum.

            It matters not whether the tories or labour win a majority or if there is a coalition with the liberals.

            The fact is, all three have exactly the same policies on the EU on the climate and are within 1% of each other on tax and spend and economic policies in general. The EU, Climate and economic issues dictate almost ALL these parties policy decisions. On all three issues, the parties have no significant difference in practice.

            This useless coalition have proved that The ONLY way to get away from labour policy is to elect UKIP.

            Why the fuck would ANY self respecting conservative vote for a tory party who continue to implement labour policies?

            I vote for the party which offers me the policies most closely reflecting the policies I believe are right.

            The tories NO LONGER offer those policies. They cannot offer those policies because they have the same policy on the EU as labour and the EU prevents the tories from implementing real conservative policies.

            The only party offering conservative policies are UKIP.

          • Anonymous says:

            The Conservatives are fucking Euro filth.

          • misterned says:

            Did you see any of the recent conservative party conference, Areshole Wank?

            Euro Filth? Whoever do you mean?

            Would that be the same tory ministers who clearly, unambiguously and categorically all came out with strong statements in support of the EU, of a stronger more integrated Eurozone and the eventual wish to repatriate some undefined powers, but not during this parliament and not for many years? Even William Hague was totally opposed to a referendum.

            Is that the Euro Filth you mean? Or do you mean liberals and labour parties who hold exactly the SAME EU attitudes?

            How can you hate the EU (as I do) and yet vote for EU loving parties?

          • CYNICAL OLD MAN says:

            What are we to do at the next General Election? There must be tens of thousands of voters feeling totally disenfranchised. Not one of the main parties speaks for me or even have policies I find electorally attractive.

            It’s true there’s not a ha’p’orth of difference between them policy wise. ALL of them would sell the population of this country down the river if it was politically expedient. ALL of them have total contempt for their loyal supporters, betting on the fact that they’ll vote for them come what may.

            Perhaps it’s time to seek out other parties that have policies closer to your beliefs. Who knows, if enough people withdraw their votes from the parties that have treated them like mugs, it could make a difference at election time.

          • Sprouts taste bitter says:

            Hmmm… Vote Labour, we will stay in Europe and piss away our future. Vote Tory and we stay in Europe and piss away out future. Vote Liberal Dem and watch the whores piss away out future, with them keen on us staying in Europe.

            However you vote, the morons in government of any colour want us to stay in the EU, probably because they have seen how a talentless twat like Kinnock gets paid shed loads of money for doing bugger all in Brussels.

        • 82
          Sybil Fawlty says:

          I hate the EU and want out. It ain’t going to happen. Next best thing would be a real conservative government standing up to the EU. That didn’t happen because Turkey’s voting for Christmas.

        • 84
          Archer Karcher says:

          +1 The LabLibCon is one party with three different factions.

          They all slightly disagree with the details of how to get there, but they all agree on the same destination. That destination looks increasingly like poverty for most, freedom for the elite and democracy, real democracy, where voting makes a difference, for none.

      • 108
        misterned says:

        OH NO!!! If we vote UKIP we might end up with a labour party in power who will be subservient to the EU and introduce backwards Climate Policies or be politically correct or reduce spending by 1% less than the tories….

        Whoever would notice the fucking difference???

  24. 58
    Jasmin Alibi Cunt says:

    We will be the opposition to a wretched coalition of the Union’s political wing and the useless Lib Dems at some stage in the next four years.

    Contrary to the ‘experts’ such as Andrew Neill who said this parliament would prove very fruitful for whoever won the 2010 election, due to a full blown recovery, this is exactly the wrong Parliament to be in power.

    All the Tories can do is constantly detail to the citizenry exactly what a bunch of reckless cu’nts Brown, Balls, Millipede etc were

    • 64
      Brillo says:

      The great Andrew Neill is never wrong, you will retract that slur madam

    • 68
      Sophie says:

      By following Brownonomics to the letter?

      Yes, that will show the country just how wrong Labour were.

      Muppet.

      • 139
        Brown's Legacy says:

        Brownsian economics – if revenues fall simply put the price up.
        Everyone is doing it.

    • 70
      Arsehole wank says:

      Yes the pool of English citizens who believe in hard work, self reliance, and in competition is dwindling to a point where England faces maybe thirty years of unbroken Socialist misrule.

  25. 61
    Ryan says:

    “It has been apparent for at least a year that Osborne is surreptitiously trying to inflate away the huge debt ”

    SURREPTITIOUSLY!!!! What the hell do you mean???

    The government debt is £1000bn and so far they’ve printed £200bn with another £75bn on the way.

    Mervyn King comes on the telly and says “I’M GOING TO BE PRINTING LOTS MORE MONEY!”.

    In what way is that surreptitious??? He’s telling you on the BBC that cash will be worth lots less over the next 10 years ago SO PLEASE GET YOUR SAVINGS OUT OF CASH! Usually they just print the cash in secret and hope that nobody notices, but this time they have had the decency to tells us what they are up to.

    • 127
      Moist is the best word says:

      Why is it the word ‘surreptitiously’ makes me think of syrup?

      Oh yes, that’s what is poured on us by our politicians.

  26. 62
    genghiz the kahn says:

    War is peace, peace is war, black is white, white is black. We have always been at war with Eurasia.

    If the B of E is trying to control inflation, then what would it be like if they weren’t?

    King is so good at his job that he received a knighthood, but then Fred Godwin got one for services to banking.

  27. 63
    Anonymous says:

    Do they really have a choice? If interbank lending seizes up again there will be carnage and blood on the streets.

    • 67
      Cato Street Conspirator says:

      What’s so bad about that? Revolution is a cleansing process.

      • 87

        If interbank lending seizes up again there will be carnage and blood on the streets.

        This only shows you don’t have a clue. It wouldn’t happen.

        Politicians love to think it is complicated, when it isn’t.

        Leaving Europe, they all claim would be bad, because Europe is our biggest trading partner.

        So I assume if we left they would no longer sell us their wares? Nope, they still need to sell it to someone, and we to them. Regardless of us giving them millions a day to be a “member of the party”.

        But they always claim it would all stop, when honestly it wouldn’t.

        As an example, the French are all arseholes, so does that stop us from buying their wine? Nope we do anyway.

        The idea that things will just grind to a halt and riots will take to the streets, and the world will be burned to the ground is wrong.

        What you mean to say is, the man who cuts your grass will not come anymore and you might have to work for yourself, that is the general worry, you might have to do a little work for yourself, god forbid.

        Its the same as everyone who ever says money doesn’t buy you happiness, I don’t see them handing out checks to people saying, here it will do you know good, but I don’t want it.

        Just like all the rich people saying, sure tax us more. How about, sure just give us the money anyway, nothing stops you from writing a check to the government and saying here take it, I have too much. Nope, no rich man will ever do that.

        The best thing possible would be to say to the banks, get the money back your owed, NOW. Let them take back the houses at what they can get for them, let them loose all the over paid money, and those who borrowed money they would never be able to pay back, let them suffer as well.

        Me, I didn’t borrow, I tried to save, I rent and paid my rent. MY savings earn me nothing, and I had to use them when my business failed because of no support from the banks.

        Nail the people who got us here, the borrowers who figured half a million for a house that in the real world isn’t worth 200k at a push, nail them.

        • 112
          misterned says:

          There are lots of people in your position who rent and save who would be homeless, because their landlords got buy-to-let mortgages which would be in foreclosure under your plans.

          Try again!

        • 129
          The people say leave now says:

          We were sold a lie when we had a referendum on the EU years ago: it was, apparently, a trading bloc.

          It turned out to be anything but.

          Yet the same lie gets trotted out now by the empty heads in Westminster: leave Europe and we lose trade.

          I don’t think we would. If anything it might make us try harder to come up with the things others want to buy, irrespective of where they are.

      • 88
        Stinkfinger says:

        In a mono culture based country perhaps.Not here though.Your going to be stuck in line with a load of Starkeys at the soup kitchen.
        Fuck me them c*nts can’t wait in line for a fucking bus.

      • 89
        Archer Karcher says:

        That rather depends on keeping murderous socialists out of power.

  28. 73

    44 – Savings worth nothing, if fact costing me money because the bank want to charge me for having money with them.
    Pension, what pension, that started costing me money 10 years ago, now again I need to pay the banks because I owe them money!
    Business, flushed because banks will not lend me money, accountant decided it was easier for him to keep my VAT returns, and the taxman said, sure he can do that.

    What the hell is there to live for?

    Oh yeah, 100% inheritance tax before too long I am sure, but that isn’t a problem because my 80 year old parents will be living in a box before too long because all their savings, pensions, are being taken away from them, to pay for them, and oh yeah, you need to give us your house as well.

    Yet, I see Councillors being driven around town, politicians living it up.

    They couldn’t be out of touch could they? No, not them.

    Rent me a gun anyone? I just need a bullet it’ll solve my problems.

  29. 74
    Juggler says:

    I agree in full. Millions of people are seeing the prudent savings eradicated by this policy that seems designed to rescue the reckless and punish the careful.

    I’ve played by the rules and now I’m seeing my hard work ruined.

    • 122
      Titford Hat says:

      Write to your MP. If every MP got hundreds of letters complaining about savers being shafted it might, it just might make them think again.

  30. 78
    I hate Blue Labour says:

    The sooner we remove this shower of imbeciles the better.

    Why don’t adults lead political parties any more? It seems to be the plaything of wealthy ignoramuses with no concept of life outside Eton and Westminster.

  31. 79
    50 Calibre says:

    I have concluded that none of the politicians, economists or banksters have the slightest understanding about what’s happening. They haven’t got a fucking clue.

    Come the revolution…

  32. 80
    St Polly of Tuscany says:

    Lick my front bottom!

    • 130
      Kettle. Pot. Black says:

      Ooo, Polly… If I could find it under all those generous red-flag knickers I would.

  33. 86
    G Eagle Eaq says:

    Senor Guidissimus

    Salve

    How does this QE differ from Mr Brown’s Economic Policy

    Is Mr Cameron now regretting that he didn’t contrive to more-thoroughy lose the 2010 Election, so as to confer upon Mr & Mrs Balls & their Friends the honour of what seems to be the Tories’ Natural Economic Policy

    Vale

    G E

  34. 97
    pissed off voter says:

    Yet another Cameron u-turn. But there is something here I don’t understand, perhaps someone can enlighten me …

    Clegg makes his pledge about student fees, gets a share of power and promptly drops his pledge. He is then slaughtered – rightfully, in my opinion – by both the media and the public.

    Cameron makes his claim on the economy as described above, gets into government and promptly pisses on the assurances he gave to get elected.
    On the same election platform, Cameron promises an EU referendum then wriggles out of it. He makes various promises about reclaiming powers from Europe, etc., etc. He has now stated publicly that he is very much pro-EU – something that has been self-evident from his dealings with Europe since he came to power.

    Cameron is no better than Clegg yet, aside from the occasional rebuke from Mr Staines, both the media and public are silent – imagine the furore if Clegg had committed those same deceits.

    That Cameron is quite open about his admiration for Blair is one thing, that he is actually modelling his career on that dishonest, deceitful two-faced c*unt is quite a different matter. Where are the real conservatives in this government?

  35. 103
    bago says:

    Fingers crossed U.K. will go down the tubes

  36. 106
    Mike Hunt says:

    Advice to GO and Co:

    STOP FUCKING SPENDING MY MONEY.

  37. 113
    dr. sipp says:

    did thatcher ever use Q.E?

  38. 143
    Robert Baird says:

    It should be pretty clear by now that QE will become a permanent fixture of monitary policy for years to come on both sides of the Atlantic. They only have two choices. Default via deflation or default via inflation. History tells us that inflation is always the weapon of choice when profligate regimes wish to defraud their creditors and citizens.

  39. 145
    Neofriedman says:

    Printing error! Too right! Factually inaccurate. Chancellor is correct. Money supply CONTRACTED 10% year on year in nominal terms in the year to Septemner and 15% yoy in real terms. If inflation is “always and everywhere a monetary phenomenon, then this presuages downward pressure on inflation, falling inflationary trends and ultimately lower inflation. But don’t let the facts get in the way of a good rant.


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Rod Liddle on the loony UN sexism special rapporteur:

“There is more sexism in Britain than in any other country in the world, according to a mad woman who has been sent here by the United Nations.

Rashida Manjoo is a part-time professor of law at Cape Town University in the totally non-sexist country of South Africa (otherwise known as Rape Capital Of The World).

Mrs Magoo has been wandering around with her notebook and is appalled by the sexist “boys’ club” culture here, apparently.

I don’t doubt we still have sexism in the UK. But is it worse than in, say, Saudi Arabia, d’you think, honey-lamb? Or about 175 other countries? Get a grip, you doolally old bat.”



orkneylad says:

What’s he been doing FFS, mining bitcoins?


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