Wednesday, January 20, 2010

All that glisters is not inflation


So inflation rose by an entire percentage point in December – the largest increase on record. The annual rate of inflation now stands at 2.8%. It also stands at 3.6%. And 3.7%. On some measures it is as high as 4.5%.

Well, it’s not rocket science, is it? Even a theologian (or some of them) can grasp the basics of economics. If you print billions of pounds and pump it into the economy, you will get inflation. Even if you call the process something impressive like ‘quantitative easing’, the effects will be the same. And a one per cent increase in a single month is a little alarming, however you measure it.

But this is not Zimbabwe. And neither is it approaching anything like the scenario that existed in the 1970s when UK inflation peaked at 26.6 per cent.

And that was before the introduction of the CPI.

There is consensus that we are in for a grim few years: the Governor of the Bank of England has said the ‘Britons was likely to be “sorely tried” over the coming years, with pay stagnating and inflation threatening to rise above 3 per cent’. They will see their standard of living fall over the next two years as salary freezes and rising inflation eat into incomes.

And Gordon Brown blames the unforeseen, unprecedented global ‘credit crunch’ for our sorry plight. The one who boasted year after year about ‘prudence’ and having ‘abolished boom and bust’ lives in the world inhabited by Alice.

But it isn’t much of a wonderland for those who can see the reality.

As chancellor, he spent above his means, taxed the most vulnerable, and gave away the nation’s gold reserves (the price has quadrupled over the past decade, losing us some £14 billion). As prime minister, he has made the supply of money unlimited to pay for his imprudence and economic dysentery. And the world is ditching paper money for gold once again, because it is finite and precious: it cannot be created ex nihilo and quantitatively eased out.

“It is required of stewards, that a man be found faithful” (1Cor4:2).

The one who is guardian of the nation’s wealth is entrusted with that which belongs to us all. And he is constrained by a centuries-old unwritten code of ethics in the administration and distribution thereof. He will be tempted to succumb to the bribes of man and the pressures of the world. But the moment he does so, the public lose confidence as he is seen to give in to corrupt, ignorant and short-range considerations of what may seem right, as against what we know to be unsound or sense not to be quite right.

It is not for the theologian to tell the surgeon the details of his business. And yet even a theologian knows when the right hand must be cut off. And the wise doctor will always listen to the intuition of the patient.

Labour are beyond surgery and incapable of listening. They do not do what is right and necessary because they no longer know what is right. They are devoid of conscience, deficient in intellect and lacking knowledge.

Even a theologian can see that.

But we are not at 26.6 per cent inflation.

And for that, we must thank God.

Not Gordon Brown.

27 Comments:

Blogger Anabaptist said...

26.6 per cent. Not yet...

20 January 2010 at 10:36  
Anonymous philip walling said...

It's either inflation or default on our debts - nothing else will ever pay them off. Because our enterprise economy has been destroyed at the same time as our currency has been debauched.

Also there are serious differences between the generation that arose during the Thatcher years and got us out of the last socialist mess, and the coming one that we all expect will revive our economy and pay our debts: young people have been sapped of their drive to succeed and the energy and education to do so.

Also they are so hedged about with controls, rules and bureaucracy that any young thing who wants to get on quickly loses the will to live when he comes up against the dead weight of the socialist control and command state that this gang of mountebanks has set up. Everything conspires against enterprise in Brave New Britain and anyone with the drive will go abroad where he can either make money and keep it or have a better life without money than can ever be had here.

20 January 2010 at 10:44  
Blogger Rebel Saint said...

I'm not an economist either, but I've figured out that borrowing £10,000,000 per hour and then just printing some extra money to try and pay some of it off isn't really the actions of a prudent man.

20 January 2010 at 10:46  
Blogger Gnostic said...

Too much of this borrowed money is being widdled up the proverbial wall. Some of this expenditure we can do without.

We can save a packet by telling the EU to sod off.

Why pay billions to subsidise (un)sustainable energy sources that don't work?

Since we've been well and truly quangoed let's start with them.

20 January 2010 at 10:55  
Anonymous philip walling said...

Brown's not prudent! He's a Scotsman. They're wild men terrified of getting out of control, and thus forced to masquerade as reasonable.
We achieved the Union of the Crowns in return for paying off the debts of the bankrupt Scotch after the Darien Adventure.
They've done it again and we will have to bail them out again.
There's nothing prudent (or reasonable) about the Scots - I know, I've got close relations with them.

20 January 2010 at 11:01  
Blogger D. Singh said...

Your Grace,

You may have compared Zimbabwe’s ultra-high inflation rates with Britain’s in the 1970s to soothe the fears suppress the fears of some of your communicants – but I believe the situation – will soon be comparable.

The now famous American economist Gerald Celente who successfully predicted the 1997 Asian Currency Crisis, the subprime mortgage collapse and the massive devaluation of the U.S. dollar predicted “The Panic of 2008,” he had said that “giants (would) tumble to their deaths,” which is exactly what we have witnessed with the collapse of Lehman Brothers, Bear Stearns and others. He also said that the dollar would eventually be devalued by as much as 90 per cent.
In a separate recent interview, Celente went further on the subject of revolution in America.
“There will be a revolution in this country,” he said. “It’s not going to come yet, but it’s going to come down the line and we’re going to see a third party and this was the catalyst for it: the takeover of Washington, D. C., in broad daylight by Wall Street in this bloodless coup. And it will happen as conditions continue to worsen.”
“The first thing to do is organize with tax revolts. That’s going to be the big one because people can’t afford to pay more school tax, property tax, any kind of tax. You’re going to start seeing those kinds of protests start to develop.”
“It’s going to be very bleak. Very sad. And there is going to be a lot of homeless, the likes of which we have never seen before. Tent cities are already sprouting up around the country and we’re going to see many more.”

The Governor of the Bank of England, I believe, is losing his nerve behind closed doors.

Here is how one national newspaper reported his comments: ‘“The patience of UK households is likely to be sorely tried over the next couple of years,” Mr King said, dashing hopes that Britain could recover quickly from the deepest slump in post-war history.

A new report by the EU (Withdrawal and expulsion from the EU and EMU: some reflections) was commnted upon today by a national newspaper. It said: ‘This is a warning shot for Greece, Portugal, Ireland and Spain. If they fail to marshal public support for draconian austerity, they risk being cast into Icelandic oblivion. Or for Greece, back into the clammy embrace of Asia Minor.

‘ECB chief Jean-Claude Trichet upped the ante, warning that the bank would not bend its collateral rules to support Greek debt. “No state can expect any special treatment,” he said. He might as well daub a death’s cross on the door of Greece’s debt management office.’

[Of course, if Greece is spewed out of the mouth of the EU – it will turn to Asia Minor (Turkey) – and the beast in the Book of Daniel will be right on schedule.]

I remember when the Irish electorate voted the second time on the Lisbon Treaty (Your Grace warned them of the dangers). They would not listen. They said that the EU would help create jobs and bring prosperity.

Why do they not see that the EU is preparing to dump Ireland in the Atlantic? Like so much excess cod that has breached EU fishing quotas?

‘And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measuresof barley for a penny; and see thou hurt not the oil and the wine.’

I would urge Judaeo-Christians in this country to start stoking up on tinned food.

20 January 2010 at 11:39  
Blogger Savonarola said...

Brown is not an economist.

He is a ideological social engineer with a severe personailty disorder parading as an economist.

26bn wasted on redundant IT projects and we cannot hold sufficient stocks of grit to avoid the road chaos of last three weeks.

He like most of the political class live in another world unaffected by the consequences of his decisions.

Cranmer, throw away the incense and get yourself to The City.

20 January 2010 at 11:41  
Blogger D. Singh said...

Your Grace,

Just one further note.

On the 18 November 2009 a national newspaper reported: ‘Société Générale has advised clients to be ready for a possible "global economic collapse" over the next two years, mapping a strategy of defensive investments to avoid wealth destruction.’

Investors were advised to invest in food products.

The EU elites know what is about to happen.

20 January 2010 at 11:53  
Blogger ultramontane grumpy old catholic said...

Quantitative easing - there's something scatological about this term.

I am reminded of Jonathan Swifts euphemism of Gulliver relieving himself of nature's uneasy burden"

When you think of it, it's apt - it's just what this government is doing to us.

20 January 2010 at 12:01  
Blogger DDIM 'n HOFFI said...

The idea that God is keeping inflation down has many implications. I think this society is not altogether Godless but we are drifting further away from the truth by the hour.

Albert Schweitzer, a philosopher, medical missionary, and Nobel Laurette, said, "The tragedy of life is what dies inside a man while he lives." Do not let the hunger for the larger world die, because without finding the spiritual world you will never truly live. You must believe in order to enter the larger world.

When the prophets Ezra and Nehemiah rediscovered the lost book, they read and explained it to the people so that they understood. When the people heard and understood the sayings they wept, so profound was the impact of the truth upon their lives.

All the people wept when they heard the words of the law
Nehemiah 8:9 (The Children of Israel Hear The Scriptures For The First Time).

20 January 2010 at 12:21  
Blogger DDIM 'n HOFFI said...

My fellow communicants of Cranmer's esteemed blog. Be not fooled by shallow and basic interpretations. Every journey requires that first step, and the journey of life is about turning body and flesh into soul. All who enter into the larger life will first knock upon the door and enter in. The way forward onto the next door is to challenge and contemplate each word, each sentence and each paragraph, each new step forward will open a new curtain. Each door has a key, it is of no use to have the key to door seven if you have not yet knocked upon the main entrance. Leave the way uncluttered as you go so those who follow will pass through without hinderance. Each step into the light will open your heart and transform your body and flesh into soul.

Safe passage and Blessings to you all as we journey along our pilgrimage.

So Cranmer has a job then!

20 January 2010 at 12:48  
Blogger DDIM 'n HOFFI said...

"All that glisters is not gold"

I like it!

The Merchant of Venice (II, vii)

Portia is a beautiful, virtuous, wealthy woman who is being wooed by numerous suitors. She is not free to decide on her own whom she will marry because her late father stipulated in his will that she must marry the man who correctly picks the one casket (out of three) that contains her picture. One casket is gold, another is silver, and the third is made of lead. The Prince of Morocco is one in a long line of suitors who tries to win Portia's hand, and he decides that it would demean Portia to have her picture in anything other than a gold casket, and so he chooses that one. As he unlocks it, he is dismayed to find a picture, not of Portia but of Death, with a message written in its hollow eye: "All that glisters is not gold; / Often have you heard that told. / Many a man his life hath sold / But my outside to behold. / Gilded tombs do worms enfold." With a grieving heart the Prince takes hasty leave of Portia, who is happy to see him go, saying, "A gentle riddance."

20 January 2010 at 12:53  
Blogger Maturecheese said...

I received a lousy education in a state school in the 70's so you will have to forgive the lack of finesse with my comments. I feel we are going to Hell in a handcart and there isn't a damn thing we can do about it. I feel that the further away we get as a nation from our Christian heritage the further down we go and yet all we see are Christian values under attack. A classic example of this Marxist/secular rot is the lack of will in Government to actively support Marriage.

20 January 2010 at 12:54  
Blogger I am Stan said...

@Mr Singh-I would urge Judaeo-Christians in this country to start stoking up on tinned food.

Only Judaeo-Christians Mr Singh?...

Are you anticipating that the sinners will starve and die off while the Judaeo-Christians enjoy the rapture..

I would urge ALL to stock up on beans,bullets and band aids!

20 January 2010 at 13:08  
Blogger D. Singh said...

Mr I am Stan,

Our Lord, before he left, taught us to pray: ‘… give us this day our daily bread.’

Once upon a time, in a land far away, there was a severe drought.

And God spoke to a Mr Elijah.

Some time later the brook dried up because there had been no rain in the land. Then the word of the LORD came to him: "Go at once to Zarephath of Sidon and stay there. I have commanded a widow in that place to supply you with food."

So he went to Zarephath. When he came to the town gate, a widow was there gathering sticks. He called to her and asked, "Would you bring me a little water in a jar so I may have a drink?" As she was going to get it, he called, "And bring me, please, a piece of bread."

"As surely as the LORD your God lives," she replied, "I don't have any bread—only a handful of flour in a jar and a little oil in a jug. I am gathering a few sticks to take home and make a meal for myself and my son, that we may eat it—and die."

Elijah said to her, "Don't be afraid. Go home and do as you have said. But first make a small cake of bread for me from what you have and bring it to me, and then make something for yourself and your son. For this is what the LORD, the God of Israel, says: 'The jar of flour will not be used up and the jug of oil will not run dry until the day the LORD gives rain on the land.' "

She went away and did as Elijah had told her. So there was food every day for Elijah and for the woman and her family. For the jar of flour was not used up and the jug of oil did not run dry, in keeping with the word of the LORD spoken by Elijah.

20 January 2010 at 14:12  
Blogger I am Stan said...

Mr Singh...unfortunately Elijah may not be around.


I would urge ALL to stock up on beans,bullets and band aids!

20 January 2010 at 15:00  
Blogger D. Singh said...

Mr I am Stan,

Elijah did not die.

Therefore, he is not dead.

It follows that because he is not dead - he must be around.

20 January 2010 at 15:04  
Blogger I am Stan said...

Mr Singh...if Elijah is still alive lets hope there is enough of him to go around.

Pray that he is not at the shop buying the last of the tined soups when he is needed by the starving golden hordes.

I would urge ALL, ie not only the Judaeo-Christians Mr Singh ,to stock up on beans,bullets and band aids!

20 January 2010 at 15:23  
Anonymous graham wood said...

Gnostic said.
"We can save a packet by telling the EU to sod off"

Unfortunately thsi prospect changed with a vote in the Museum of Democracy last night.
See the following:

From 'Open Europe' Report today
"Labour and Lib Dems thwart Conservatives' attempt to introduce "referendum lock" on future treaties extending EU's powers

PA reports that the Conservatives last night unsuccessfully tried to make an amendment to the Government's Constitutional Reform and Governance Bill to ensure that any future treaty transferring power to the EU be subject to a referendum. Mark Francois, the Shadow Europe Minister moved the amendment which the Conservatives have described as a "referendum lock" on transferring sovereignty to the EU.

Mr Francois said, "These amendments and new clause 68 would ensure that any future treaty that transferred areas of power or competences from the United Kingdom Parliament to the European Union would require the consent of the British people in a referendum as a condition of its ratification."

He added, "If we were not to succeed tonight and if we were victorious at the general election, we would amend the legislation as an incoming Conservative Government in order to achieve a referendum lock... My party believes that the British people should be given the last word on any future transfers of power from the UK to the EU."

The amendment was defeated by 303 votes to 183.
On Conservative Home Jonathan Isaby notes "The Lib Dem opposition to the amendment marks another high point in hypocrisy for them and, in particular, their leader. At the Liberal Democrat Conference in 2005, one Nick Clegg proposed a motion stating that 'Any proposals which involve significant change in the relationship between the Union, the member states and its citizens should be approved in Britain through a referendum'".

20 January 2010 at 15:25  
Blogger DDIM 'n HOFFI said...

Mr I am Stan

Are we to assume from your comments that you are stockpiling a large armoury of personal deadly weapons?

I just thought it would be good to highlight this in the interests of public safety.

20 January 2010 at 16:12  
Blogger I am Stan said...

@HOFFI-Mr I am Stan

Are we to assume from your comments that you are stockpiling a large armoury of personal deadly weapons?

I just thought it would be good to highlight this in the interests of public safety.

Hahahaha...fear not,the public is safe from me!

20 January 2010 at 16:29  
Blogger DDIM 'n HOFFI said...

Yeah right!
999
911

20 January 2010 at 16:38  
Anonymous philip walling said...

What are people going to do when the electricity fails? Last time in 1975/6 we weren't utterly dependent on computers and telecommunications. The lights were off for half the week, but we used candles in the shops and at home.
If it happens again (as it assuredly will) there will be civil disorder on a scale we've never seen in this country before.
If you're not storing tins and other essentials (including candles and gas) then you will be one of the starving hordes that will be rampaging through every city and town in the country stealing whatever they can find. Once it goes it will go so quickly (like the Haiti earthquake) that you won't have time to think.

20 January 2010 at 17:34  
Anonymous not a machine said...

I had thought this was would mark the begining of a very difficult period of inflation The govner of the Bank of England who knows what he is on about , says not . Let us hope he is right .

20 January 2010 at 17:35  
Blogger john in cheshire said...

There are three things that socialists do, either in power, or aspiring to power; namely, steal money, spend other people's money and lie - about everything.
So, when one sees what appears to be a 'moral' socialist, one must always question why he has associated himself with that segment of dogma. He is either a very good liar, a very optimistic idealist, or a complete buffoon. And those on the left who appear 'normal' seem to exhibit all three traits.

21 January 2010 at 18:19  
Blogger Unitalian said...

And the Tories response was...? I remember - the policy that plunged us into Depression 80 years ago.

But hey-ho, George will still have his chance when he takes a hatchet to the public sector - which of course accounts for all our ills - seemingly oblivious to the fact that its the only thing that has kept the economy afloat.

I suppose when you're insulated by unearned wealth other people's pain becomes just about bearable (or you're not particularly dependent on the health of the economy, like many a right-wing hack). Still, I suspect the British voter will see through it around the dip of the W. Expect a very brief honeymoon...

21 January 2010 at 23:36  
Anonymous Adrian P said...

They are leading us over the edge of a cliff, they expect to retain control after the event.
All the while they are telling the masses, everything is OK, recovery is just around the corner.

All this economics claptrap is just complex sounding economics jibberish.

The BofE and the not so federal reseve are Private companies and we are being stiffed.
The BofE Exposed

I hope the Generals know what is really going on.

26 January 2010 at 04:04  

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