Douglas Carswell's Blog

Inflation is going to let rip

"While the US has doubled its monetary base over the past 18 months, the UK's base money supply has tripled" warns Liam Halligan in the Telegraph.  "The UK base money is now three times bigger as a percentage of GDP than it was at the start of 2009.....

For now, a lot of the UK's QE money remains "inert", and therefore not yet inflationary .... That will continue to be the case ... until the banks have blackmailed the British Government into following America's "lead", and expanded QE to include the purchase of toxic corporate "assets" as well as Government bonds.

Eventually, though – and it may not take long – the huge expansion of the UK's base money supply will cause broader monetary aggregates to balloon"

I wonder if inflation is actually deliberate policy in order for Western governments to try to reduce their debt liabilities?  Inflating away debt might get Western states off the hook, but it will ruin their citizens' savings and their productive capability in the process.

Eventually, no doubt, we'll read of politicians telling us they were against such a reckless monetary expansion all along - in our £10 newspapers, while drinking £30 cups of coffee.  

Inflation is coming.  We've been warned.

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