Inflation: How Each Backstop Is Breached

[IMHAL]

It is interesting watching the BoE, the media and the government reacting to the economy as it heads into a 70's style inflationary spiral - each time a target is breached a new target/indicator is erected and a new excuse is put forward.

First we had 2% CPI as the target that mattered - demolished! Excuse - external factors

Then we had the perception of inflation: demolished now 4.9%: New indicator - low actual wage demands

Now we have wage demands soon to be demolished - especially after the truckers pay deal (~7% pa) gets out and MP's salaries increases are better understood.

What is left? only hope that these 'external factors' will subside and this is the excuse that IR be left as they are. And the sub-text to all this is the boogy man/mythical monster called deflation will re appear around the corner to get you (which of course it won't so long as mney can be printed).

There are no new targets they have totally lost control and credibility - they are managing the economy on hope.

Sterling is going to get even more crucified - inflation will spiral out of control, strikes will become the norm and secondary inflation effect will be emedded into the system in the blink of an eye.

In short, we is scr3wd!

HAL