Inflation and Brown Haze

Some economists, mostly on rising salaries maybe, have seriously suggested that allowing inflation may be a way out of our present economic difficulties. There are signs that real inflation is increasing much more rapidly than RPI increases or other measures of standard inflation might suggest. Those who will suffer most if it continues to increase are, of course, the most vulnerable in society, namely the elderly and those on low incomes. If Mr Brown doesn’t understand this and show some empathy he will prove he is, in words used long ago of some one else, a ‘dessicated calculating machine’. It seems inevitable that the May local elections will show great losses for Labour and there is at least a chance of Labour losing the London mayoralty. Then pressure on Brown from within the Party will  increase - not a stable or even a desirable state of affairs because who could take his place?Such political instability will further increase the turmoil in financial markets and the real economy will decline still more. Not a very happy state of affairs but a time for Mr Brown’s highly-paid advisers to help him communicate with people rather better than he did in his pathetic performance yesterday.

This entry was posted on 15/04/2008 at 10:18 am and is filed under Uncategorised. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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