Friday, 10 October 2008

Zanu Labour and a new Zimbabwe?

Last night's edition of 'In Business' on R4 was exceptionally good; Podcast Here. The most credible scenario is that the government will now take us into a period of hyper-inflation by printing money. Time to get the tyre on the wheelbarrow fixed, I think, in case I need to pop to Tesco.

7 comments:

Sabretache said...

I doubt the total of the monetary aggregates will increase at all - at least not until after the 50:1 + de-leveraging that is just getting serious legs has completed its destruction of non-cash 'money'. What does that translate into? soaring prices for essential consumables, collapsing prices for fixed assets. Welcome to stagflation courtesy of the stupidest chancellor in history.

Nick von Mises said...

Japan. 1990s.

Insane money printing but deflation, in which assets fell 80% and the CPI went down 2%.

It's called a liquidity trap and the UK is about to experience it.

Blue Eyes said...

Seems to me almost "obvious" that retail prices and wages will have to catch up with asset prices one way or another. Probably by the dual effects of retail hyper inflation and collapsing asset prices.

Umbongo said...

Interviewed on BBC 10:00 News last night Brown assured Robinson that the bail-out will not affect spending on the NHS, education, benefits etc etc. In other words it'll be business(= spending) as usual with just a few more IOUs signed by Darling and his team at the Treasury - there's nothing to worry about.

Raedwald, I'll see you in the wheelbarrow department at B&Q.

Yokel said...

So, he is just about to rip off all of us who have actually saved for our retirements due in a few years time? All the remaining final salary schemes are about to close if that is the case. And those of us with cash value pensions don't stand a chance. Typical!

The turn up for the book will be if someone sees G Brown Esq in the checkout queue at B&Q with a shiny new wheelbarrow. Fat chance!

Nick von Mises said...

"he is just about to rip off all of us who have actually saved for our retirements due in a few years time"

Ahem. How many private pensions are final salary. The whole point of offering final salary schemes was to buy off workers now with a promise that can't possibly be kept. Should've known that when you signed up.

Just cos they mugged you doesn't mean you are justified in mugging someone else to make good your loss.

patently said...

Brown assured Robinson that the bail-out will not affect spending on the NHS, education, benefits etc etc.

Put it that way and it sounds as if he spoke in coherent sentences.

All I heard was a serious of soundbites about health, education and the poor assembled into a structure vaguely resembling English. He's fast becoming a parody of himself.