Monday, August 11, 2008
Captain Bank of England abandons the wheel, taking all the liferafts and a bottle of ships rum with them
If most people truly understood what inflation really is, they would take to the streets and raze Threadneedle Street to the ground. Inflation is a knife in the back of the prudent, and a generous bounty for the reckless. Inflation is not an act of god, it is an economic effect arising from a set of deliberate policy decisions. Inflation is moving money from those that have managed their finances to those who have ignored advice and bought whatever they wanted. Inflation will create more inflation as the pound sinks in value (which is what created this round of inflation too!). Inflation is what happens when the Bank of England fails in its duty. Inflation is the sound of policymakers' indifference. Inflation is the sound of the UK economy writhing.