It is Obvious

Chris Rick has got altogether too much to say

I’m in rehab

Posted by chrisrick13 on April 13, 2015

It is obvious: soon be May

I’m cured.  I used to surf channels on the tv and arrive at 24-hour news where I would stick.  The election coverage has cured me of that.  I’m still subject to odd snippets of news, and do sometimes watch the news on one channel or another.  On CNBC the guy running the morning programme is brutally honest about stuff – he is now my default location and I save a lot of effort by starting there.  Now though, I often do not even put the tv on.  I sit and sulk in silence.

I did hear that nice Mr Balls, one of the architects of the economic mess we are now in, saying that he would cut the deficit when he could.  I’ll pose the question: we need inflation high to get rid of our debt if we can’t earn our way out of it, suppose he gets it up to (say) 5% what happens then?  Inflation at 5% is way beyond the 2% remit of the MPC you might say…if you have forgotten that they left it at 5% for a long time without doing anything.  Perhaps interest rates will be stuck up to cure inflation (this time).  Suppose there is a run on the pound and we need to put interest rates up to protect it (sic)?

The answer is that the interest on over a quarter of our debt suddenly costs 4 times more.  The rest of the debt follows as short and then longer and longer bonds roll over.  At some point people refuse to buy or we go into default.  We rapidly go from paying for two NHSs to paying for 6 NHSs…but still only have one.

Spiral your way out of that Mr Balls.

I have heard just as much drivel from the Conservatives and Liberal Democrats it is just that they don’t have the conceited grin on their faces when they say it as Mr Balls does.

Part of the problem is that any political party that starts even to talk about austerity is blamed for it.  The population in general are unable to see that austerity is a consequence of previous actions and not of the people enacting it.

The point is that it is not a matter of doing when we can.  We have to do it before others do it for us.

Just heard a Labour shadow minister saying how she was going to fund something from the mansion tax.  This is the estimated £2.5bn that was going to fill the £90bn hole in their spending plans.  The interviewer then reeled off several other spending plans that will be funded off the mansion tax and asked which one was now being dropped.  They are well trained – the minister just ignored that and kept talking.  They know that time will run out so just keep talking until the interviewer has to cut away.

We are getting close to one of the major trigger points – the election.

It is obvious: soon be May – sell before your money goes away

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