Douglas Carswell's Blog

Inflation not my fault, says Bank governor

The governor of the Bank of England, Mervyn King, has apparently warned that higher utility bills could push inflation to 5 percent.

Perhaps, Mervyn, rising inflation might also have something to do with all that extra money you've been printing? 

Rather than giving us a series of ad hoc reasons for missing his inflation target, Mr King should ask if perhaps the Bank of England is to blame.  The governor is starting to run out of excuses. 

For years, our monetary managers kept the price of credit artificially low - leading to a ruinous bubble. 

Faced with the shortage of credit that followed, King and co decided to keep the price of credit even lower - thereby discouraging the build up of any further savings and credit.  Instead they printed a whole lot more money, which has created various asset bubbles - and will inevitably debauch the value of our currency.

It's not just rising utility costs that are the problem, Mr King.

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