Dear Lord, it's worse than I thought. I had reckoned that Mervyn King would be very nervous about breaking through the 17% resistance ceiling, but it would appear that he possessed no such illusions. UK inflation is now at a whopping 17.5% and I predict that next month it will break through the 20% barrier once the effects of 'quantitative easing' kick in.
This now gives us an effective UK interest rate of -16.34% (with base rates at 1%).
Last month, the Bank of England also presided over the creation of £808 pounds per person, here in the UK, with a staggering growth in the money supply of £48.5 billion pounds. And the bugblatter beast mandarins over at HM Treasury say they wonder why the pound is collapsing!
Why don't they ask their employees over at the Bank of England?
Figures here: Provisional estimates of broad money (M4) and credit (M4 lending) January 2009
The next provisional release for February 2009 will appear here on the 19th of March, at 9:30am.
Link to December 2008 M4 Chart.