Sunday, Jul 13, 2008
What we all know to be the truth
Daily Mail: The REAL rate of inflation is 10%, says ex-PM John Major as he warns cost of living is going up faster than official figures
Families are being hit by a real rate of inflation as high as 10 ten per cent as Britain edges closer to recession, Sir John Major has claimed. The former Tory PM and Chancellor, in a rare intervention into domestic politics, warned the Government's official inflation figures could not be trusted. He also expressed 'human sympathy' for Gordon Brown's plight and said he regretted some of the personal attacks being made on him. But he insisted Mr Brown was partly to blame for helping to fuel the economic downturn.
Posted by uncle chris @ 10:46 PM (709 views) Add Comment
14 Comments
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1. gone-to-colombia said...
John Major, do we really care what he says or thinks?
2. enuii said...
He's about as near as you could get to normal as an ex-politician.
Can't see how your opinion really counts gtc as you live in South American exile.
3. Retired Banker said...
"Expressed human sympathy and regretted some of the personal attacks on Brown"............
I always thought that John Major was too good natured to be in politics.
4. brian t said...
I happened to catch that bit this morning. "Normal" is the right word. It was like a blast from the past to hear someone who thinks before he opens his trap. David Cameron could do with a good talking to from the Major, IMHO.
5. Cheekie Charlie said...
I don't think it really matter's whether the government manipulates the inflation figures or not, in the end the public will either not be abel to service their debts or have less to spend. The result will be the same.
6. gone-to-colombia said...
My opinion counts as much as want to hear it, ignore, consider its nothing to me.
And
Wasn't Major the PM who hired the pitiful Lamont, the author of black Wednesday?
I seem to recall he does not have much of a choice in mistresses either.
Major isn't even his real name.
In short a failed ex pm with bad judgement.
As bad as all the rest.
That's why I'm here!
7. Nocomment said...
Tax as everyone knows is a temporary measure to finance war and is not sustainable. Mr major sounds like one of the army or police foreign subversives.
8. Panda said...
This is typical "throwing a lamb cutlet to the wolf" kind of thing. Naturally, people are inclined to trust someone not actually in the loop - but 10% is utterly ridiculous. Try 40%.
Face it folks, we are in dead trouble. Inflation is out of control because the BOE genuinely don't give a damn. Or if they do, someone higher up is giving them tremendous trouble.
10%?
I wish!
9. brian t said...
Whatever you say about Major's past - my point is: if he seems to be a voice of reason and common sense in this economic climate, that tells us just how nutty things are.
10. fubar said...
He came across as coherent and considered which left me feeling very woozey. He also did a fair bit of good natured taking the credit for the economic growth of the late nineties. Made Codron Brown seem like a man just sitting on a runaway horse. Can't believe I'm saying nice things about a tory - will need to lie down for a bit now.
11. fahrenheit451 said...
@ Panda, quite right.
The trouble with the inflation figures is that they take a make-believe array of items and pretend that everyone is only buying/selling those items.
The next problem is that the more the Recession bites, the smaller the range of items people buy, and it gets biased towards the essential items only, now its the essential items that are going sky high, who cares about luxury villas in Europe, Caribbean, Moscow, etc.
We always needed at least 2 indices for inflation, according to the market that are monitoring.
It would be great IF the Basic Price Index were for only essential items (a budget of £800 / month), such as:
- Council Tax, etc;
- average weekly shop for a 4-person family (that does home cooking and not ready meals, etc.)
- general services, such as fuel, water, telephones, etc.
Then leave the Luxury Price Index for a household budget of £1,500 / month including luxury items.
But who would think that any government would actually be able to sort this out, they add and take away items from the CPI and RPI, if they make the figures look bad, who cares if they become totally unrealistic.
http://www.statistics.gov.uk/default.asp
12. nooneo said...
gone-to-colombia @ 1....
"John Major, do we really care what he says or thinks?"
Why wouldn't you want to listen to the man who, almost singlehandedly, stopped people killing each other on a huge scale in Northern Ireland. And left the Blair government with the best balance of payments since WW2. His opinion may not count for much with anyone who is under 30 say but he does speak from experience. Let's not forget he took over in 1991 at the height of the last crash and finished in 1997 when house prices had experienced a modest move upward. His opinion is that just an opinion but to dismiss it without saying why is hardly a debate
Now WHY shouldn't we care what he says or thinks?
13. nooneo said...
gone-to-colombia @ 6....
"Wasn't Major the PM who hired the pitiful Lamont, the author of black Wednesday?"
If you knew anything about british political history you would know that "black wednesday" was created when we joined the ERM. Lamont was no more the author of the ERM (originally started in 1979 without britain) or black wednesday - He was reacting to the money markets that destabilised the pound in an attempt to scupper our entry into the Euro.
"In short a failed ex pm with bad judgement." - Don't all ex PMs fail - they lose elections - Ask the people of Northern Ireland, now enjoying as much peace as can be expected - whether John Major's contribution to the continuing peace is a "failure".
John Major may indeed be another failed politicion but in some ways he deserves better crticism that just creating stupid soundbites for this blog.
14. hpwatcher said...
The arrogance, incompetence and ignornance of New Labour has made John Major look very, very good.