This page has been archived and commenting is disabled.

Quote Of The Day: BOE's Adam Posen "U.K. Inflation Will Slow After Temporary Surge"

Tyler Durden's picture





 

We believe Ben Ali tried the same quote. We are not sure if he used the precisely same wording: maybe that's why he was almost decapitated in the town square by a mob of angry and very hungry vigilantes. And if the quote above is FTW, then this one is FTMFW: "CPI, excluding currency, commodities and VAT impact, is low" also, let's not forget food prices, energy and petroleum byproducts. We totally agree with Adam: aside from everything, inflation is negative.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 01/21/2011 - 11:32 | Link to Comment SDRII
SDRII's picture

His money quote yesterday:  to paraphrase - inflation isn't the central bank concern rather it is stability

Fri, 01/21/2011 - 11:45 | Link to Comment flacon
flacon's picture

LOL! I remember seeing a ECB cartoon about the dangerous "monster" called "DEflation". The cartoon went on to say that "INflation" of about 2% is GOOD - which is why we need the monetary scientists and intellectually superior economists at the Central Bank to "tweak" things to make us all happy. It is simply laughable how they try to fleece the gullible population. 

 

ECB Cartoon: Price stability - Why is it important for you?

http://www.youtube.com/watch?v=wTo1noKGQGU

Fri, 01/21/2011 - 12:33 | Link to Comment King Durian
King Durian's picture

Then what would you want ideal in/deflation to be?

Fri, 01/21/2011 - 12:43 | Link to Comment flacon
flacon's picture

Who knows... But supply/demand price inflation/deflation is different from monetary base inflation/deflation - but that is a reality that is obfuscated by the intellectually dishonest economists who rule our Keynesian nightmare. 

Fri, 01/21/2011 - 14:36 | Link to Comment Hephasteus
Hephasteus's picture

inflation=stealing

interest on deposits=stealing slightly less from savers.

In total everyone is stolen from massive inflation is just there to wipe the savers. Which is RIGHT where we are. Buy silver.

Fri, 01/21/2011 - 16:09 | Link to Comment downrodeo
downrodeo's picture

I saw this shit when it first came out. How they cram so many fallacies into such a short period of time is beyond me. I had to watch it 3 or 4 times before it finally sank in that this was meant to be taken seriously. I haven't been able to laugh since....

Fri, 01/21/2011 - 12:48 | Link to Comment Clayton Bigsby
Clayton Bigsby's picture

Why does this rain on my back smell like piss?

Fri, 01/21/2011 - 16:10 | Link to Comment downrodeo
downrodeo's picture

trickle down economy baby!

Fri, 01/21/2011 - 11:33 | Link to Comment Cookie
Cookie's picture

Pure farce

Fri, 01/21/2011 - 11:58 | Link to Comment Sudden Debt
Sudden Debt's picture

Not if he meanth "Temporary" on a geological time frame.

1 million years is like a second on the earths clock :)

Fri, 01/21/2011 - 12:36 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

By that definition, it is a certainty that eventually a giant space rock will destroy all life on Earth.

So, we have that to look forward to.

Fri, 01/21/2011 - 14:12 | Link to Comment Sudden Debt
Sudden Debt's picture

Didn't you hear about the Super Nova in 2012?

2 suns... Amagine.

 

Fri, 01/21/2011 - 16:33 | Link to Comment downrodeo
downrodeo's picture

the math is determinate.

step 1: take a few minutes and observe, turn off sound if you hate Pink Floyd (also, never write me another christmas card again if that is the case)

http://www.liveleak.com/view?i=388_1290729693

Step 2: watch all of your trivial cares dissolve into a mist born of the realization that in the end, all of our bullshit doesn't matter for one iota

 

 

if that doesn't do it for you, i can always put up the galaxy song for you

Fri, 01/21/2011 - 11:34 | Link to Comment Quintus
Quintus's picture

This is some temporary surge.  It's been temporarily surging above the BoE's 2% target for just about 36 straight months now.  Every month inflation is 'Higher than expected' due to some one-off and temporary event.

When you're surprised 36 months in a row, people might be forgiven for doubting (i) Your competence, (ii) Your sincerity or (iii) Your motives.

Fri, 01/21/2011 - 11:38 | Link to Comment EscapeKey
EscapeKey's picture

Came here to post exactly this.

+1

Oh, and not forgetting the standard excuse for the past 18 months have been along the lines of "we're not concerned, as this months above target inflation figures are the result of one-off issues". There sure are a lot of one-off issues.

Fri, 01/21/2011 - 11:39 | Link to Comment plongka10
plongka10's picture

+1

(i), (ii) and (iii) for me.

Fri, 01/21/2011 - 12:02 | Link to Comment LeBalance
LeBalance's picture

When month after month one is being violated, it becomes obvious that the people saying that you are not being violated are part of the mechanism that is violating you.  It may also be evident that you need to be violated but also require an excuse in order to accept it.

LOL!

Fri, 01/21/2011 - 11:35 | Link to Comment satansanus
satansanus's picture

anyone who claims stability is their mandate, clearly sucks and should be fired at once.

The last 3 years have been a tragic comedy

Fri, 01/21/2011 - 11:39 | Link to Comment jmf
jmf's picture

Moin from Germany,

here is a nice chart showing "real rates" in the UK from 1990-2011......

http://thumb1.ftdcdn.de/original/Image/2011/01/18/p/151901_PfundKAP_c.gif

 

Fri, 01/21/2011 - 11:39 | Link to Comment Thomas
Thomas's picture

That was classic.

Fri, 01/21/2011 - 11:40 | Link to Comment 101 years and c...
101 years and counting's picture

if you back out the last 102 years, the chicago cubs are the reigning world champions.

 

 

Fri, 01/21/2011 - 11:52 | Link to Comment cswjr
cswjr's picture

lol, nice

Fri, 01/21/2011 - 11:41 | Link to Comment morph
morph's picture

UK inflation has been 2% over target for about 3 years now.

This is from the idiot who wants more QE though. 

Fri, 01/21/2011 - 11:43 | Link to Comment EscapeKey
EscapeKey's picture

'The' idiot? They're all idiots, who want more QE.

Fri, 01/21/2011 - 11:41 | Link to Comment lunaticfringe
lunaticfringe's picture

That's generally how inflation works. There is this giant buying spree, followed by slack demand as everyone quits eating and using energy. If we take out all sectors, including health care, inflation looks pretty tame. I get it. Movin on.

Fri, 01/21/2011 - 11:44 | Link to Comment Alcoholic Nativ...
Alcoholic Native American's picture

speaking of U.K. inflation

300% price inflation on tuition for your soon be jobless useless kids.

 

LOL

Fri, 01/21/2011 - 11:48 | Link to Comment SheepDog-One
SheepDog-One's picture

But I'm sure its 'contained to sub-prime students' only....

Fri, 01/21/2011 - 11:54 | Link to Comment Alcoholic Nativ...
Alcoholic Native American's picture

Every semester their tuition rates go up.  OMG they are going to be stuck with an underwater College degrees they can't sell!

Fri, 01/21/2011 - 14:38 | Link to Comment Hephasteus
Hephasteus's picture

That DOES IT! I'm repossessing all your elective courses!!!

Fri, 01/21/2011 - 11:48 | Link to Comment EscapeKey
EscapeKey's picture

Well, the whole story here is actually one of socialism failing. For years, the gov't has just trivially accepted whatever increases in tuition fees the institutions asked for, with the obvious inevitable result that the full costs spiralled out of control.

Education is the 3rd biggest entry in the UK budget.

Fri, 01/21/2011 - 11:44 | Link to Comment Dagny Taggart
Dagny Taggart's picture

"To get more yards, it's best to move the ball from the line of scrimmage down the field." - John Madden

Fri, 01/21/2011 - 12:08 | Link to Comment lunaticfringe
lunaticfringe's picture

Profound.

Fri, 01/21/2011 - 11:45 | Link to Comment SheepDog-One
SheepDog-One's picture

They never predict any of what happens, but are 100% sure they have the future in the books.
Mortgage meltdown problem? We dont see it, thats not a concern at all...wait, its contaned to sub prime and wont effect anything else....wait, we need $24 trillion to fix it.

Fri, 01/21/2011 - 11:45 | Link to Comment Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

Yes it's 36 temporary events in a row,nothing significant,when it hits 9966 it will be no more significant.

FX markets must be totally blind to all this bullshit,sterling rapidly on the way to zero,all part of the long term plan for the imposition of the Euro,to replace sterling when the current economic policies being pursued by the UK govt lead  to the inevitable bankruptcy.

This has been planned years ago.ECB will rule the entire Eurozone,mass third world immigration to ethnically cleanse the indiginous populations,no such thing as nationalism anymore,we are all going to be "Europeans".

Rather like watching a sick animal,Iwould rather they put sterling out of its misery now,revalued at EUR/GBP 1.30-150 at the date of the sterling collapse/conversion anyone?

 

 

Fri, 01/21/2011 - 11:46 | Link to Comment Horatio Beanblower
Horatio Beanblower's picture

The UK's shadow chancellor (opposition treasury minister), Alan Johnson, has quit his post following revelations that Mr J's bodyguard has been banging Mr J's wife, Mrs J.  Mr Johnson, a former postman, has not gone postal, yet.

 

http://www.belfasttelegraph.co.uk/news/local-national/uk/alan-johnson-bodyguard-lsquohad-affair-with-wifersquo-15060586.html

 

He was shit at the job anyway.

Fri, 01/21/2011 - 11:50 | Link to Comment EscapeKey
EscapeKey's picture

Hah, yeah and Brown's lapdog, Ed Balls, is the new shadow chancellor.

Fri, 01/21/2011 - 11:50 | Link to Comment the not so migh...
the not so mighty maximiza's picture

I hate when that happens.  Was the wife banging the bodyguard or was the bodyguard banging the wife?

Fri, 01/21/2011 - 12:35 | Link to Comment malusDiaz
malusDiaz's picture

Takes two to tango...

Fri, 01/21/2011 - 13:48 | Link to Comment Horatio Beanblower
Horatio Beanblower's picture

I don't know, but someone got banged.

 

As EscapeKey has said, the new shadow chancellor, Ed Balls, was Mr G Brown's right-hand man.  Balls is a dangerous bastard, and so is his wife.  I view them as the high priest and high priestess of Fabianism.  Their true loyalty is not to the UK or the British people.  I hope Balls's bodyguard has the same ethics as Johnson's. 

Fri, 01/21/2011 - 11:47 | Link to Comment Racer
Racer's picture

"CPI, excluding currency, commodities and VAT impact, is low"

When I read that I was lucky I wasn't drinking or I would have ruined my keyboard and screen

Fri, 01/21/2011 - 11:48 | Link to Comment tmosley
tmosley's picture

Yes, inflation will return to normal after the revolution.

Fri, 01/21/2011 - 11:49 | Link to Comment Alex Lionson
Alex Lionson's picture

There is always peace after a war.

Fri, 01/21/2011 - 11:52 | Link to Comment SheepDog-One
SheepDog-One's picture

Depends on who wins the war! No good times for those who lose the war, and the people are losing big time!

Fri, 01/21/2011 - 11:56 | Link to Comment Alex Lionson
Alex Lionson's picture

Agree, that is exactly what I meant, first they invoke a "war" and then promise that after that everything will be OK.

Fri, 01/21/2011 - 11:51 | Link to Comment SheepDog-One
SheepDog-One's picture

SO! Everything is now sunshine and lollipops again, so why do they need more Q/E again? Hard to keep things straight between these clowns blowing double rainbows up each others asses and Geithner sending dire warning letters of total doom if trillions more arent immediately handed over.
More bourbon, anyone?

Fri, 01/21/2011 - 11:57 | Link to Comment Alcoholic Nativ...
Alcoholic Native American's picture

Yep, it's all good.  It's like the guy on your block not paying his mortgage.  Nothing really changed.  Some people still have to pay their bills though, oh and their taxes untill they fucken die.

Other than that, sunshines, and lollipops is correct.

Fri, 01/21/2011 - 12:01 | Link to Comment Pants McPants
Pants McPants's picture

+++++

Exactly right.

Everything's fine now, you see, BUT....we need more money to make sure things continue as normal.

 

Fri, 01/21/2011 - 12:06 | Link to Comment Caviar Emptor
Caviar Emptor's picture

+10

Perpetual love and monetary perpetual motion is at hand 

Fri, 01/21/2011 - 11:59 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

Oceania has always excluded currency, commodities, and VAT impact from inflation.

Fri, 01/21/2011 - 12:05 | Link to Comment Caviar Emptor
Caviar Emptor's picture

"I was for inflation before I was against it!"

Fri, 01/21/2011 - 12:07 | Link to Comment Racer
Racer's picture

Like an alcoholic saying, it's only one drink

Fri, 01/21/2011 - 12:07 | Link to Comment Cdad
Cdad's picture

Wow!  Lots of little miracles today.  Bob Pisani just noticed it.  His words, loosely, "We are up, Asia is down...huh?" 

Right...Asia is choking on Bernanke Banana Inflation.  Now, who left in this country does not understand this...aside from Bob Pisani?  Anyone...Bueller....Bueller...

There is no decoupling.  BTW...you have very little time left to dump your long positions in the NASDAQ...that rally is so far past over it is funny that Bob Pisani cannot see that, either.

 

Fri, 01/21/2011 - 12:15 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

Its not ben's fault. China could break the peg in " 15 minutes " if needed. The inflation would fly, fly away ......

But alas everyone knows they can't. The manufacturing economy/banks/PBoC would all get monkey hammered.

This is China's problem, not uncle ben's ....

 

China printed like a mother fucker over the last 3 years.  Chickens coming home to roost ....

Fri, 01/21/2011 - 12:38 | Link to Comment King Durian
King Durian's picture

+111 Let the monkey hammering begin!!

Fri, 01/21/2011 - 12:13 | Link to Comment lunaticfringe
lunaticfringe's picture

I cannot decide whether to buy more gold or more silver today. Leaning yellow. They are having an after x-mas sale on it because inflation is non existent.

Fri, 01/21/2011 - 12:19 | Link to Comment Johnny Lawrence
Johnny Lawrence's picture

Isn't there any concern that a market crash (which will happen) will cause commodity prices to plummet, resulting in deflationary pressure?  After all, as many have said here, the surge in many commodity prices have been driven by speculation? 

Plus, if you look at 1990s Japan, the Fed balance sheet also expanded dramatically, and although they had bouts of inflation, the overwhelming trend was deflationary.

Fri, 01/21/2011 - 12:23 | Link to Comment savagegoose
savagegoose's picture

yeha i guess everything is ok in UK, they prob didnt expect to still have a pound sterling this far in, what do you know the game continues.

Fri, 01/21/2011 - 12:37 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Is this Posen practicing for a stand-up routine, or does he believe we are that stupid?

Fri, 01/21/2011 - 12:43 | Link to Comment Futurist
Futurist's picture

Inflation: An exercise for central bankers. Close your eyes, think happy thoughts, repeat there is no inflation, there is no inflation... Open eyes there it's gone, it was never there. Repeat as often as possible. Now imagine deflation, quick print money...

Fri, 01/21/2011 - 13:00 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Heh.

"Just lay back, close your eyes, and think of England."

Fri, 01/21/2011 - 12:47 | Link to Comment Oh regional Indian
Oh regional Indian's picture

I think he is thinking in terms of the male orgasm, but this inflation business just might be a feminine thing, eh?

ORI

http://aadivaahan.wordpress.com/2011/01/21/accidental-lives/

Fri, 01/21/2011 - 12:54 | Link to Comment cougar_w
cougar_w's picture

Let's see. I'm broke, in debt, out of work, have a tooth ache, my wife left me, my truck was repo'ed and my dog up and died. But other than that I guess I'm fine.

Fri, 01/21/2011 - 12:58 | Link to Comment topcallingtroll
topcallingtroll's picture

I voted for inflation before I voted against it.

Fri, 01/21/2011 - 13:37 | Link to Comment PulauHantu29
PulauHantu29's picture

You can feed the Sjheeples almost anything......

Yes, it's "Better then Expected" once again......

"Situation serious buyt we are making gians.."

"Your pain is....only temporary..."

"Your hunger will go away soon..."

"See the Green Shoots?"

Fri, 01/21/2011 - 14:42 | Link to Comment alter ego
alter ego's picture

China will go the hard way with US. 

Full blown war with the West.

They can't de-peg the Yuan and the US is not going to stop printing money.

Who blinks first?

 

 

Fri, 01/21/2011 - 19:08 | Link to Comment hallofthemounta...
hallofthemountaingrill's picture

HM govt has stopped issuing index-linked national savings certificates.

Do NOT follow this link or you will be banned from the site!