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It's Not Magic, It's Work!

21 Apr 2009

Deflation Lie

The current British government is trying to convince the population that we are in the grips of deflation and that the solution to our debt problems is to borrow and spend our way out of them. Because we face deflation rather than the more typical inflation we are safe to borrow and spend - which would otherwise be dangerous - indeed borrowing and spending helps to combat deflation - they say.

It is true that deflation, or a shrinking of the money supply, which normally means that things get cheaper is not a good thing. However I don't see the same deflation that the government sees, all the things I buy such as basic food ingredients are going through the roof in price, and imported goods and foods are rising even faster.

It's all a feeble attempt to prop up the housing bubble by mortgaging the nation's future to pay for the greed and ineptitude of the current ruling classes. I'm not anti-Labour or anti-Tory but I am stridently opposed the the pocket lining politicians running the place.

Come the Liberal revolution, I know who I'd have lined up against the wall...