This is another tweet, just posted:
It would seem that UK economic management is totally out of control.
No wonder we are in a mess.
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I wonder if this means the OBR consider that the allegedly impending long-delayed Brexit import controls will have negligible affect on inflation (nonsensical given their obvious effect on food prices) or that they’re of the opinion, for reasons best known to themselves, that the introduction of these controls will be put off yet again?
Who knows? We are not told…
Inflation is getting under control because central banks have reduced the money supply through higher interest rates and QT.
I know you claim the money supply does has no relevance on inflation but to everyone one else that is a bizarre statement because it clearly does.
Everyone else?
Who are you kidding
QT keeps interest rates up.
And do you understand the difference between abase and public money? I vey much doubt it.
David J
“Bizarrely”, a portion of F&C at my excellent local chippy has gone from £6.30 to £8.30 in the last 18 months or so. And I guess that the owner is absorbing some of her soaring costs in lower profits, or it would be higher.
I expect you’d tell me that the price increases are because lots of people are feeling flush, and treating themselves more often.
But I suppose that if you really want a link between “too much money” and inflation, you might find it in the bank accounts of the energy companies’ shareholders and directors.
Yes! BoE and OBR not working to same script. This is clueless economic management and bad Government. They do not talk to each other. The Government is nowhere to be seen, hiding out in plain sight, in the middle of this utter incoherence. Incoherent on Covid policy (Witty, Vallance). Incoherent on monetary policy (BoE v. OBR inconsistent, and the Government agrees with both). Incoherent on the economy (5 Chancellors in three years, each one moving in a different direction). There is, I think we can all see, a theme here that we can attach to the Conservative Government; no matter the feckless crew actually turning up to bungle their way through Cabinet.
What Hunt supplied today is best summarised as a cheap stunt, in the hope it may limit the electoral damage to the Conservative Party next year (notice the NI change is January, not the new fiscal year. Hello, an election for Spring, 2024?). We cannot continue to run the economy on the basis solely of Party election stunts in the Conservative Party – or any other Party. It is utter madness. But we do.
I confess I am at a loss to understand why so few people accept that the deeper problem here is Government based on Party interest. It doesn’t work. Party itself may be difficult to replace, but FPTP, on which their power rests, could be replaced. Once FPTP is gone, the collapse of unconditional trust in Party, and its ability to avoid being brought to account quickly, will collapse.