Friday, Dec 19, 2008
Imported inflation here we come
Reuters: Brown says targets inflation, not sterling
Prime Minister Gordon Brown stated today that the country's economic policy was aimed solely at targeting inflation rather than the level of sterling and added that "The day to day movements of the currency and of the pound are not something I think is worth give a running commentary on".
Posted by enuii @ 08:13 PM (923 views) Add Comment
17 Comments
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1. icarus said...
These are not just day-to-day ups and downs, FFS.
2. Brownlove said...
Beyond belief!!!!!!!!
As for targeting inflation. Yep. First the CPI con and now printing money like there's no tomorrow.
Is he hoping that Europeans will come here to buy our 30% reduced houses? Desperation to keep house prices beyond the reach of our children.
I think the plan is definitely to crash the UK into a developing nation starting from the 35 year olds and under generations. Keeping housing beyond their reach so that their following generations will end up living on the streets as in India etc.
UK has lost 30% of its wealth and nobody is rioting????
3. plato said...
He must have a lot of foreign currency. Can anyone confirm this? Are leaders normally not concerned about their national currency?
4. guiriduro said...
At last, some proper strategic decision making from el Gordo? Funny, when people were worried about getting their money out of Northern Rock, him and his puppet Darling were pretty "day-to-day" running about to "fix" it kneejerk-style, and they seemed to be taking a pretty "day to day" view about the aftershocks of Lehmans and Bear Sterns. You'd think with a bubble 10 years of slow mismanagement in the making, they could be a bit less "day to day" about its decline - but we seem to have got kneejerk responses to any and every wince and weeze from the banking industry. Perhaps el Gordo would do the world a favour and go back to sleep and allow excitable journalists and nervy investors, "day to day" to deflate the bubble nice and quickly, and use the next year to get some proper strategic thinking done (hint: outside advice will be required) about the kind of debt-lowering post-bubble economy we can build in its place, then he will restore a modicum of the faith in the UK that he's largely destroyed already.
5. Puppee said...
surely a weak pound will cause inflation to rise as 75% of our goods are imported , weak pound = more expensive goods results in higher inflation surely
6. inflation is eating my savings said...
Obviously the devaluation is desired by "those that matter". However, there are reasons, as most here would understand.
Remove the debt, hold our money in to the uk, stimulate uk industry. I think these are good things, although total isolationism is not.
Relax, most savers have benefited by staying out of the market- and they'll get a cheap house in a year or three. Everyone is suffering- savers and borrowers. Is the aim to be better than the next man by timing the market and currency/commodity hopping? Or is the aim to have somewhere to live in an economy that functions for us? This is an opportunity.
7. Yoss said...
God it's like reading about Mugabe denying the "Disease" Outbreak!
What next GB? US secret services planting crap loans in our banks? Is that what caused the melt down?
Nothing at all to do with the bloated nanny state creaming off a HUGE percentage for "non job" public servants, hoping that ever increasing house prices might stop the MAJORITY noticing that they do fook all and provide very little for their relative cost?
8. The Baldman said...
Sorry but sterling does matter as it correlates to inflation
9. bystander said...
GB bought euros with the proceeds from his dismal deal selling half the UK's gold reserve for $250/ounce in 2000. If he is determined, as it appears to make it obvious he and his government do not care what happens to sterling it may well be taken as a sign to all FX traders to dump the pound, even to the level of 85pence/euro, giving him the opportunity of buying sterling with his euros and making a very tidy profit in the process, which he could then invest back into the future of the UK and not just into the pockets of his mates in the city. Sterling will then rise sharply again, GB will be hailed as a saviour and he will walk the next election. Alternatively he has probably already spent the gold proceeds and is trying to force sterling down to drag us into the euro. I hope the former is closer to the truth.
10. crunchy said...
Ok my turn. Forget about economics for a minute.
Think about what is best to further the .................................................................................................I will not say it.
It is inflation. You all know it, I know it. So let's stop kidding each other by trying to rationalise. As much as some will want deflation in a strange kind of way
it just isn't going to happen.
There is too much turmoil ahead. Most I hope will understand.
11. crunchy said...
Prime Minister Gordon Brown stated today that the country's economic policy was aimed solely at targeting inflation rather than the level of sterling.
Can you spot the contradiction.
Has anyone not yet realised to spin around whatever G. Brown says.
12. drewster said...
Related article - thoughts?:
13. mdmick said...
re: 8
People buying a currency to close down previous trades, can't that activity be applied to the sterling currency too?
Every day, we talk about how we do not yet know the true extent of debt in the US - so how can someone quantify the currency's worth?
These statements are too cursory, perhaps.
14. drewster said...
mdmick - I wish I knew more about this stuff. One of the comments after the article in #8 says that Euro-bonds are the way forward: you get higher interest than the UK plus the chance to benefit from higher values when the ECB cuts rates.
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