Andrew Bailey, the Bank of England Governor, has braced Britain for a lengthier bout of post-Covid price pressures as inflation rockets towards a 10-year high.
The Bank’s latest forecasts showed the Consumer Prices Index benchmark, which stands at 2.5pc, sharply climbing to 4pc – the highest level since December 2011 – by Christmas.
Its estimates signalled that inflation would remain above the Bank’s 2pc target throughout next year as soaring commodity prices and shipping costs and shortages of crucial components such as semiconductors bite, before finally returning to target in mid-2023.
Mr Bailey said the inflation rise was “marked by historical standards”. Although the Bank insisted that the price pressure would be temporary, it admitted that “some modest tightening of monetary policy” would be needed to hit the inflation target “sustainably” over the medium term.
The MMT lark is going to be tested.
1) Will we have inflation without full employment?
2) Will they stop printing money when the inflation arrives?
3) Will they sell the QE bonds back into the market to cure the inflation?
4) Will the political will to even battle the inflation be there?
Note that the P³ has firm and absolute views on all of those. Me, I’m waiting to see…..
Getting social credit tyranny is Johnson’s only concern. The rest doesn’t matter. After he has that and maj of dickheads have had so many jabs their immune system cant handle a common cold without more gene re-writing shite he has the mugs all ways. National collapse is just more great reset. If inflation helps ruin us then more to the globo “elites” purpose.
On that note I hear more bullshit about big con-vid kick-off in Wuhan. Supposedly.
Why not? The last one fucked up the world outside of China and nearly enabled worldwide tyranny. But too many have seen through the bullshit. The momentum of takeover is faltering–so another round of Project Fear to bolster the world’s cowardly and slavey scum seems on the cards.
We had this discussion a couple of fays ago. All this talk of inflation, I thought that we were heading for Weimar/Argentina/Venezuela/Zimbabwe levels. That would have destroyed enough private wealth to make Ecksy’s vision a reality without pumping the populace full of potions.
4% is nothing.
Will drive up state repayments on its vast borrowings Ottokring.
Course Blojob J and Spewknack can pay in printed funny money–but that=more inflation and rising rates again. If they have to pay in tax money 6 or7 % will see vast chunks of their tax take gone in interest repayments.
Stagflation is the real problem. If we have inflation without growth then we are buggered. A population in work and paying its taxes will keep the wolf from the door. For a while at least.
“Stagflation is the real problem. ” Concur.
Since greenery is essentially pissing money up against the wall for no return, should any growth in that sector be regarded as part of GDP? Is it any different from digging holes with teaspoons then filling them in by the same method?
Some people’s personal inflation rate is already well over 5%