‘Ms Pond has a moat’ – now why do I find that funny?

Well lots of reasons but mainly to do with the hypocrisy over the MPs expenses scandal of the Labour and LibDem parties.  But also to do with the equally hypocritical attitudes of the media.  It has taken the goodly Iain Dale (admittedly with both a political and local interest) to point out the joke.

Meantime I see that Gordon Browns ‘its deflation stupid’ (sort of) remark has still to come to pass.  The Times reports RPI inflation actually rising and that CPI is still  above the government target and has fallen by far less than economists expect.

“Economist expect … “,  now there’s another funny thing.  But more seriously the news that the BoE is not to immediately expand its programme of quantitative easing has, according to the Telegraph seen,

“The benchmark 10-year gilt yield leapt by almost a fifth of a percentage point as traders abandoned UK government debt, fearing that the Bank may soon abandon its purchases of them altogether”

It’s a bit worrying that the main deriving force for buying government debt seems to be the government itself printing money to give to our debtors to buy our debt in the first place.

But then I am not an economist … or a labour politician.

Ultimately the joke will indeed be on us, especially us dumb mortgage payers. ‘City sources’ point out

“The decision underlines the likelihood that at some point in the coming year attention will turn instead to so-called exit strategies from QE, which could involve selling off some of the gilts or raising borrowing costs.”

Browns gimmicky self serving obsession with ‘deflation’ has as usual turned out to be a mistake and with billions of printed money sloshing around our good friend inflation will have to be hit on the head by the Bank.

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