Sunday, April 25, 2010

Exposing the lie

Our politicians have been happy to promote the deflationary myth

I nicked this from @interestrateripoff on the forums. It is depressing to note how easily sucked in the majority of the media have been on the deflationary myth. It beggars belief that any rational economist would subscribe to deflation being a threat when the government is printing money, devaluing the currency and ignoring key inflation indicators in its monthly interest rate-setting meetings. In conclusion, the UK is in for a short sharp shock when Parliament hangs next month.

Posted by paul @ 11:53 AM (1164 views)
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4 thoughts on “Exposing the lie

  • The majority of the media are easily sucked in because the majority of the media – just like the majority of the country as a whole – are homeowners. Acknowledging the greater risk of inflation would mean raising interest rates and this would never do.

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  • I think partly because of the huge budget deficit that govy has created (which in turn limits what the govt can do to encourge growth) we are heading for stag inflation just like that in the 70s. So they need to start raising rates now, the longer they delay it, the higher the eventual interest rate will have to be.

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  • I told you all and (clever stillthinking) deflation was a myth.

    Do you really think the economy has a free will in this day and age?

    Inflation is the aim of all central banks. Don’t beleive what they tell you.

    “When they create the money they don’t create the interest.” Simples!

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  • It will be a sharp shock but not a short one .

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