The central banker’s view is that all inflation is ultimately down to the availability of too much money in the hands of those consumers who must work for a living.
The BoE has, for example, more than once noted that £ has slid, this makes imports more expensive, therefore inflation – and then done nothing about it. Because it’s £/import caused inflation, it’ll be in the index for 12 months then stop being so. So too with VAT rises.
Yes, all price rises will eventually fall out of the inflation index. Meanwhile the price level has permanently risen and unless incomes also rise then people are permanently poorer.
The central banker’s view is that all inflation is ultimately down to the availability of too much money in the hands of those consumers who must work for a living.
Therefore, we must tax that “too much money” away. Right?
He is desperate to downplay inflation, presumably because his entire pension and savings are in the 1% bonds he demands others invest in.
Sam Jones
As I have said previously (on a thread that nearly hit triple figures on comments) there are basically five primary causes of inflation:
– impact of Sanctions on Russia/ Belarus and the Ukraine war (which he points out and in fairness his paragraph on this is probably the least objectionable in the entire post)
– The impact of Net Zero on the cost of energy and knock on effect on production costs (no mention of this obviously)
– The impact of QE on the Money Supply now the excess money is being moved into commodities (as you mention – a complete failure to understand or a denial of the reality that he is directly responsible for the inflation caused by QE)
– COVID lockdowns and ensuing business collapse and supply chain dislocation (which he was hugely in favour of)
– impact of demand driven by unlimited migration to the UK and over 10 million undeclared illegals (again which he is hugely in favour of – decrying any criticism of immigration as ‘racist’)
So effectively he, and those like him are directly responsible for or supportive of 4 of the 5 factors – and indeed you could argue he is ‘bearish’ on the need to confront Putin. So forget the bonds for a minute (Although I share your assessment of his investment portfolio) – he has to understand even in the dim recesses of his mind that his ideology has caused this inflation and for that reason he can see the pitchfork wielding mob approaching his end of terrace semi with a rope…. That’s what drives his increasingly deranged fantasies.