22
July
If the Government fails to make cuts now it will be racked with gilts
22 July 2009 The Telegraph
Last week, we learnt the UK's CPI index grew by only 1.8pc in June. Given this column's hawkish stance, I suppose I should be happy inflation is now below the Bank of England's 2pc target.
Instead, the way this news has been spun, and the media's willingness to swallow that spin, fills me with despair.
Inevitably, I suppose, the CPI's dip below target has been presented as "yet more evidence" the UK faces a Japanese-style "lost decade" of deflation. The only escape, we're told by City economists and their pet commentators, is for the Bank of England to keep printing money and the Government to rack up ever more debt in order to extend yet more unconditional cash to our bloated banking sector.
