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.
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