Sunday, May 10, 2009
Bank of England: “Hyperinflation is coming”
"It is likely to use its key quarterly Inflation Report, published on Wednesday, to raise its projection for the consumer price index over the next two years"........"The MPC is likely to have to cut its immediate projection for gross domestic product in the coming months, but will predict that growth will rebound vigorously towards the end of the year." So all those companies who have sacked 1,000s of people are going to just give them back again? Because suddenly we are all going to start buying TVs and houses again? Inflation may be V-shaped but GDP? ------ Gordon´s, BoE maths... GDP = consumption + gross investment + government spending + (exports − imports), so if compumption, gross investment, exports, imports are all approx zero, then GDP = goverment spending!!!