The government has busily been printing money and practically the whole of this funny money has been used to buy government debt.
So those economists employed directly by banks, or those dependent on bank contracts, again mislead when they prattle on about long-term interest rates being held. We simply do not know to what level long-term interest rates will go once the game of printing money stops.
It simply isn't possible to increase the money supply by 300% and for there not to be a megadose of hyperinflation built into the system. Inflation is the cruellest of redistributors taking away from those who have saved and penalising most those on low earnings who have limited or non-existent collective bargaining powers.
Monday, 30 November 2009
The Four of Horsemen of the Apocalypse
The Cobden Centre has highlighted an article by Frank Field entitled "The Four of Horsemen of the Apocalypse".