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Inflation in the UK accelerates… as expected
Inflation is heating up in the UK!
Bloomberg reports:
U.K. inflation accelerated more than economists forecast
in April to the fastest since 2008, forcing Bank of England Governor
Mervyn King to explain publicly why officials haven’t raised interest
rates yet.
Surging commodity and energy prices have kept inflation above the
bank’s 2 percent target for more than a year, and the Ernst & Young
ITEM Club said yesterday that may undermine consumer spending for a
decade. The central bank signaled last week it may need to raise the key
interest rate from a record low to control “uncomfortably high”
inflation that may reach 5 percent even as economic growth slows.
“This outturn is consistent with the broad inflation profile
predicted by the Bank of England that inflation will top 5 percent later
this year,” said David Tinsley, an economist at National Australia Bank
in London. “It’s certainly upside news.”
For regular readers of Smart Money Europe, this shouldn’t come as a surprise.
Two months ago, we already showed that the monetizing of UK debt many times in the past resulted into a hyperinflationary collapse.
We still have to see what effect the recent price correction of oil
will have on the future CPI numbers in the UK, but history already shows
that short term oil price corrections have little effect at the pump.
With soaring inflation in the UK, bond investors are bitting the
dust, as 10Y government debt paper is only yielding 3.4%! How long will
this bond market last?
So, the UK CPI is steadily on a rise, clearly showing the UK economy
is currently muddling through a stagflationary environment, still at
risk of an hyperinflationary nightmare.
Of course, there always a place to hide for UK investors…
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Before the 2010 election:
Osbourne : Merv, we have to cut the deficit - I have a plan
Mervyn : Absolutely - what do you need
Osbourne : Interest screwed to the floor - the cuts I am planning are going to be front loaded
Mervyn : what about inflation ?
Osbourne : AS MUCH AS YOU CAN GET AWAY WITH
The rest of the interest argument is just a phoney smoke screen played out in the media for the proles....
Note also if you remember the headlines, "Neutral" Mervyn knifed Labour's economic policy just shy of the election. The whole thing is a stitch up.
The stagflationary abyss that the UK is staring into:
http://www.marketoracle.co.uk/Article28153.html
Are people in charge allowed to produce charts with a GDP
range of -.5% to 6%. Surely a little more accuracy should be
demanded. If they are not too careful, the general populus
might get the idea, that the good ship U.K's crew are not quite
the best!
OMG, are you implying The Bernak, The Merv, the IMF and these individuals DON'T know everything? and what exact rates to use? and what the exact best inflation rate is?
Blasphemer!
<sarc off>
Britain is a shithole. The incompetent establishment still runs the place, as it did during the days of Empire. However the establishment is now x10 more incompetent and x100 more inbred than previously.
Oh and the ordinary British person (as in other nations) is still totally ignorant. They simply look for political solutions within the framework of the current broken 3 party system. Meanwhile the general public hasn't the faintest clue about what will soon be happening to this hollowed out broken country.
As a student I have little intention of staying here for long after I graduate.
I'm sure Mrs Thatcher would object very vigorously at being compared to Labour shit-hole days. She thinks she cleaned up that mess and made Britain rise n shine once again!
But look all is well in the future look at the projections for GDP and inflation going forward :
http://www.bankofengland.co.uk/publications/inflationreport/irfanch.htm
Just a temporary spike, nothing to see here, move along....
Who is kidding who here, inflation in everything people need to survive is coming to the world. Deflation in everything else. Hedge accordingly.
That's STAGFLATION Bro.
not quite...
Stagflation: stagnant economy/GDP, inflating prices (where we're at right now)
Deflation: deflating economy/GDP, deflating prices (you'll know it when you see it)
Yes and I bet if you looked at those stupid fuzzy charts the BoE produced a year ago with their predictions they would have been WAY wrong and underestimated as usual
In the last 20 years the UK has turned into a total shithole.
Ruined by bought off politicians and socialist trendies.
Its decline is inevitable - it is weak.
You ain't seen nothing yet, wait till the Muslims decide their time is right.
The U.K. invited them in with open arms just to get beheaded.
nowt to do with Muslims, there's almost none in that shambolic shithole called Westminster...
..it's 80 years of stinking socialists with periods of Home Counties village idiots (the Conservative Party) who have sold their souls to every establisment parasite around, particularly banksters
...down the tubes/toilet it is for a well deserved culling with capitalisms Grim Reaper
The UK has been a declining shithole for a century. It started with loss of empire, and continued because the people running the place are incompetent.
Very competent at turning it into a socialist hellhole and sharia compliant shambles.
+ 1
get ready, cuz it's comin to your shores soon.
like father, like son
....delete
+1