Tuesday, 20 April 2010
Inflation was above the expected figure - no surprise there.
This government's expectations, and the figures it uses to try justify what it spends, have been consistently over-heated since day 1.
Food inflation is running at 8-10% - and that may get worse in the next few months. Fuel inflation was in any case higher than other commodities, yet dumbledorf Darling still put the tax on duty up in his budget. What dumbledorf Darling seems to forget is that the private motorist is one of the least affected by increasing fuel duties; its the prices of everything else that has to be transported or cultivated with machinery that has the most effect on inflation. And high fuel duty levels in this country threaten jobs in the haulage industry and in market gardening. The longer we are governed by economic illiterates and political cowards the worse the state of the country.
But what can you expect when we have a yellow streak PM who thinks that spending and investment are the same thing? Remove yellow streak Brown at the election is the only solution.
Only then will there be prompt action taken to cut the deficit. The deficit is undermining confidence in the pound.
The low pound is causing fuel inflation and hence inflation. The low pound is also a consequence of low interest rates. Any rise in interest rates alone will not work without confidence in the UK economy. This can only be brought by reducing the deficit.
As yellow streak Brown reckons he is not cutting anything, he cannot solve this problem.