The government narrative, parroted by the BBC, is that economic deflation is the dragon which St Gordon must slay. The idea that current government policy is storing up massive inflationary pressures that will cause chaos over the next eighteen months is dismissed and so this morning I listened to a BBC approved commentator, Dr Sushal Wadhwani actually state that inflation would be a nice thing to have. Howard Davies was also on to shill for quantitative easing and all in all this little item was seven minutes in favour of the Dear Leader’s policies – with a Wadhwani knife in the back for Mervyn King for added measure.
DEFLATING INFLATION!
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It was nauseating. Yet another display of two men supposedly going ‘head to head’ on Toady when in fact they were both backing discredited Gordon. Humphrys yet again revealed that he knows absolutely nothing about economics.
Blaming Mervyn for the failure of the gilt auction was pure malice with no credibility. Talk about shooting the messenger.
It is noticable that when Govt officials talk against gvt policy it is deemed “political” whereas when they agree it is just seen as common sense.
We are in such a huge mess for one reason alone –the government has spent too much and too unwisely whilst other countries have saved in the good times (sound familiar?)
Oh and Humphreys obviously has a very low opinion of his listeners average intelligence- the patronising parasite.
I can’t believe Conservative HQ hasn’t got the equipment for a video to be made just ask and I am sure they will loan it to you.
I believe David Cameron is looking to use new technology outlets in campaigning, he must surely support “on message” You Tube video making. I am sure DC has not missed the Hannan Effect, and surely as leader must be looking at ways to use that to the Conservatives benefit.
John Redwood is saying on his blog that he had been invited onto the Today Programme to discuss the failures of the Bank of England, only to be told last night he wasn’t needed.
When he tuned in this morning, the dissenting opinion he was supposed to be there to voice was not represented, with two others agreeing with the Quantitive easing steps being taken.
I am glad that he put this up on the blog as clearly the BBC ran away from allowing him to broadcast his opinions in favour of showing solidarity with Brown’s circus like recovery plan.
However, my opinion is, as seen with the Hannan Effect this week, he should now take himself off to a room record his opinions and put them on the internet under the title “what the BBC doesn’t want you to hear from me” (He claims not to have this equipment, but surely Conservative HQ, a neighbour or family member has a camcorder or a webcam!)
Maybe we should have a “channel” on you tube devoted entirely to arguments the BBC will not listen to.
sorry everyone… copy & paste screw up (I spell check in Word)… I meant to post:
John Redwood is saying on his blog that he had been invited onto the Today Programme to discuss the failures of the Bank of England, only to be told last night he wasn’t needed.
When he tuned in this morning, the dissenting opinion he was supposed to be there to voice was not represented, with two others agreeing with the Quantitive easing steps being taken.
I am glad that he put this up on the blog as clearly the BBC ran away from allowing him to broadcast his opinions in favour of showing solidarity with Brown’s circus like recovery plan.
However, my opinion is, as seen with the Hannan Effect this week, he should now take himself off to a room record his opinions and put them on the internet under the title “what the BBC doesn’t want you to hear from me” (He claims not to have this equipment, but surely Conservative HQ, a neighbour or family member has a camcorder or a webcam!)
Maybe we should have a “channel” on you tube devoted entirely to arguments the BBC will not listen to.
Thank God for Mervyn King, thank God. You can’t go round printing money – no wonder the gilt markets failed. People who buy gilts aren’t hedgies or fly by nights – these are serious operators and to expect them to have their investment inflated down to sod all is mindless stupidity.
That lover of all things fascist – Georgie Soros is touting UK PLC for IMF bailouts – hmm, personal incentive?? No, ofcourse not!
Dick 12:28
Of course you are right about gilts. But no-one in the BBC understands the first thing about finance or economics apart from the excellent Paul Lewis on R4 money box (midday today !).
There seems to be a pattern emerging, Monday to Thursday the news coverage has a stab at quality and objectivity, albeit though a reddish lens.
Come Friday the Beeboid Trots start to rebutt the things they did not like during the week and then during the weekend they run riot with the full fat Marxist propaganda.
Is it just me or has anyone else noticed this.
BBC Northern Ireland has been on a spending spree in the last few weeks – wall-papering the offices with the most expensive plasma screens available.
They had to squander / use up all the excess budget before the end of the financial year – and the licence fee increase!
Meanwhile the local commercial station UTV has had to put expereinced and popular journalists on the dole.
It does not get any starker that this.
Daniel1979 | Homepage | 28.03.09 – 11:53 am |
Maybe we should have a “channel” on you tube devoted entirely to arguments the BBC will not listen to.
Brilliant idea.
Time to learn Chinese – the canny chaps have completely hoodwinked the stupid west.
“storing up massive inflationary pressures”! Last month prices rose at an annual rate of 11%. Experts were taken by surprise by the increase in inflation because they had expected last years big increases to be falling out of the year on year figures. But for February, prices were rising even faster than last year.
So if experts were surprised last Tuesday can they be so confident that defalation is the bigger threat?
The same experts who didn’t see the economic bubble bursting? The small business sector saw it happening years ago + the brighter ones saved up for it.
the moral of the story is ask the people who are in the front line
It amazes me. It is like we have failed to learn from 33 years of managing the money supply. It is like all of the Keynesians who have been hiding in the wings, lurking at the treasury and the Beeb, have suddenly been given their chance at last. You simply cannot spend your way out of a recession. It causes inflation – and sunsequently unemplyment. Banks will only start lending money again when it is profitable and safe for them to do so. At the moment LIBOR is way higher than the price of lending. Why lend when it will cost you? This is what the government should address, not printing money to try to pump life into a shrinking economy.
In the same way that no one at the Beeb foresaw the credit crunch – no one at the Beeb seems to have realised that the government is recklessly doing all it can to ensure inflation is in double figures before too long.
So – what happens if the economy is still in recession, banks are not lending, interest rates are low or 0% and then inflation is rising up and up. What choice will Merv the swerve have then? To put up interest rates? Will that ensure a longer recession or will it get banks lending again?
“Maybe we should have a “channel” on you tube devoted entirely to arguments the BBC will not listen to.”
This is indeed an excellent idea,it should be given very serious consideration.
nrg 12:45
I have noticed that the most anti-semitic/anti jewish items on ‘news’ programmes happen on a Friday night or Saturday morning when orthodox Jews will not switch on their TV or radio because it is the sabbath. Happens too much for it to be a coincidence.
The BBC does not like Mervyn King. When I say the BBC, I mean Robert Peston. Our favorite Brown-nosing biographer has been sticking it to King for quite some time. If anyone can stomach scrolling through all those posts, you’ll see just what Peston thinks of King’s behavior. I’m sure it has nothing to do with whether or not King’s moves go against so many of Mr. Brown’s cunning plans. He even tried to take credit away from King about Lloyds taking over HBOS, and acted like Mr. Brown played an important roll. Of course, as I commented a couple of weeks ago, Peston has been trying to shift blame for Lloyds’ current digestive problems away from Mr. Brown.
On Wednesday, Peston was at it again:
Gilts and guilt
Come on Robert, tell us how you really feel. It’s apparently Mervyn King’s fault that the UK’s car boot sale of debt wasn’t a total success. As if the rest of the world hasn’t been saying the same thing King did in Parliament. Does this remind anyone of the BBC’s effort to blame George Osborne for that little drop in sterling? This is part of King’s job, no?
Oh, wait, Peston says it was a “relatively modest” sale. But he still felt the need to make an effort to pin the blame on anyone but Mr. Brown. This wouldn’t have anything to do with Mr. Brown’s current difficulties trying to get European leaders to go along with his “Save the World” spending schemes, would it, Robert?
As the BBC business editor, Robert Peston’s opinion weighs heavily on BBC reporting. As Gordon Brown’s biographer, Robert Peston’s opinion weights heavily on BBC reporting.
Yet, the BBC wants you think Mervyn King is the one sticking his nose into politics.
Deflation ?! Council tax has gone up !
Every time Mervyn King, to prove his independence, opens his mouth to say “its worse than we thought”, “We just don’t know how long it will take” “were all doomed” one thing happens: the pound nosedives. Ive watched it happen every time. Its a version of “The pound fell today on fears that the pound would fall” STFU Mervyn, youre not helping!
The economy runs on only one thing – confidence.The more pointless utterings, whatever the political motive, the result is the same. Investors lose further confidence in the worth of the pound. Which is why, as Dan the man Hannan noted, it has lost a third of its value against the Euro – which is just as screwed up an economy.
Mervyn is no hero. And what’s his pension remind me?
All this government knows to do is tax spend and inflate, that’s the sum total of their economic knowledge. The 1997 ‘revolution’ also added spin. Mervyn King of course is better than these people but he also bottled it in the past when he suddently stopped talking about the moral hazard. This left all of them with immoral policies carried out until this very day.
AndrewSouthLondon – not quite buddy, sure, confidence is an important aspect but better to be honest rather than burn billions and billions and billions and billions etc.
AndrewSouthLondon | 28.03.09 – 7:17 pm |
That’s kind of beside the point, isn’t it? The BBC accuses him of being political whenever he does his job in a way that appears to criticize Gordon Brown. When it makes Mr. Brown look good, King is okay by them.
Lets not forget that Peston is the son of a labour crony peer.
The coverage was poor but I have news for you all – we will have prolonged deflation, perhaps very very prolonged, and deeper than even the greatest pessimist ‘experts’ are daring to say so far.
Its not just here but throughout the world, and led by Japan which will have years more of the stuff.
We are seeing prices falling despite record near zero interest rates and desperate quantitative easing attempting to stave off this inevitable result of the credit crunch.
You can’t buck the damage being done as a result of changing MV=PT so much, the change in velocity of circulation down is so great falling prices are inevitable.
You won’t be able to stop it, and lots of it.
With the whole world hit the predicted collapse of the UK will not materialise neither will there be a collapse in the pound, in fact it has shown considerable signs of recovery, and the pressure on the other main currencies will be very real soon as they stimulate and print money much more than the UK is or can do.
Take the rose cloured spectacles off, this is years of deep depression to follow, and no future conservative administration in our one single nation will make a blind bit of difference to that, you are all in cloud cuckoo land.
Anonymous | 30.03.09 – 12:53 am |
Thank you Dolly Draper. Stick to fiddling you educational qualifications.
Dolly With the whole world hit the predicted collapse of the UK will not materialise neither will there be a collapse in the pound, in fact it has shown considerable signs of recovery
What signs would that be? 1.41 to the $, 1.07 to the Euro, I can’t see any recovery