Sunday, Oct 22, 2006

Inflation - New car running costs 'rise 500' or 10%

BBC: New car running costs 'rise 500'

While we are told tha inflation is below 3%, we get more reasons to believe that inflation is much higher. Yet another example - car running costs. 10% increase in one year. What else you can say. Do we need to have shadow government which does serious job for people, not for government itself? What is really really real inflation?

Posted by utis @ 03:02 PM (517 views)
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1. Ontheotherhand said...

Really really real inflation is printing money faster than the economy is growing and rising prices are only a proxy for measuring this. M4 growth in money supply is growing at its fastest rate for 15 years and inflation will inevitably hit over the next two years because of it. This article about rising car costs is a perfect example of how everyone including the government only thinks and cares about current cash flow rather than problems brewing in the future. Most of this new car running cost is faster depreciation, but since this will only impact the average punter when they eventually come to sell the car all they concern themselves with is their current repayment costs for the new car which have remained low with the interest rates. In the same way the government only cares about tax and cash flow today rather than future problems such as inadequate pensions that have been stealth taxed every year - the punter only notices when they come to sell the car/redeem their pension and by then all the MPs have retired and are on the lecture circuit

Monday, October 23, 2006 01:33PM Report Comment

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