Thursday, May 15, 2008

Official - stagflation is back

I have a slight soft spot for Sir Mervyn King, despite his being an architect in our downfall, because he at least calls a banana a banana when he sees one, rather than a softening curvature of overall global food growth demand.

In his latest report this unusually honest central banker admits to having helped Gordon stretch us between the two stools of rampant inflation and rolling recession; Sir Mervyn then admits he has little idea what to do next, which is nice.

Really, of course, he ought to resign to heap further ignominy upon his master, Lord Sauron of Downing Street, but I'm sure the salary, the expenses, and the pension contributions, plus perhaps the kudos, would be too much for most men to give up, so I can appreciate his dilemma.

But it must also be delicious to report to his idiot savant master, who once claimed to have abolished the evil twins of Boom and Bust, that we now appear to have acquired both in double-barrelled proportions!


Yes, once again, despite the best of them having tried yet another mighty heave to get socialism to work over the last ten years on the back of an enormous credit expansion, we can clearly see that socialism truly is impossible. Will that stop them trying it again in the future? I doubt it, but at least another generation is about to learn the harsh Misesian lesson of human action reality biting back.

You never know, one day they might give it all up and try freedom instead.

UPDATE: There's a splendid related Torygraph article on this, by Edmund Conway. Marvellous. Alas, I was unable to resist commenting, as is my wont, but don't let that put you off reading Mr Conway's excellent piece.


John East said...

Compared to his US counterparts our Merv' is brutally honest. Furthermore, he's resisting US pressure to cut interest rates and inflate, which must be extremely brave when you consider his gormless Boss, Gordon, presided over a Treasury which shadowed all that Greenspan did during his Chancellorship. Hence the uncanny similarity between USA and UK as the indebted sub-prime capitals of the world.

For these reasons I like Mervyn.

Sadly, he has one job left to fulfill which was hinted at during the Northern Rock debacle when Brown delayed confirmation of his reappointment. That is to act as the fall guy, in perhaps 18 months time, when we are still in recession and Darling/Brown attempt to dump all responsibility and get re-elected.

Jack Maturin said...

I think Sir Merv may be thinking the way you're thinking, so he's getting his retaliation in early, now that he's got the re-appointment in the bag! :-)

I'm sure Brown and his puppet darling will try what you suggest, if they're still around, but I think by then it will be far too late for both of them, and with Sir Merv having shown that he's got his finger on the pulse of this, they'll look like fools if they try.

Expect Sir Merv to still be in place when Cameron/Milliband get in.

BTW, the other reason I like him is that he also looks like my pet Guinea Pig, "Choccy"! ;-)