Tomorrow sees the release of the provisional M4 figures for January. With Mervyn King, the man behind the green curtain, almost proudly announcing that he's about to flood the British economy with more paper monopoly money to counter the hobgoblin of price deflation, I wonder if M4 is finally going to go over 17%?
By looking at the chart here, it seems that 17% is a bit of a ceiling, even for inflationist King. If M4 does go through this 'ceiling', I would further bet on 20% being hit next month. If the base rate also goes down to 0.5% by next month, this would take the real UK interest rate to -19.4%.
After that, we can expect M4 to start heading north of 25% and the base rate to then disappear at 0% as McCavity Mugabe's government turns on the full taps of the proper 'Zimbabwean' solution, forcing nationalised banks to disgorge more of this filthy lucre.
Yes, Ladies and Gentleman; we must really fear deflation. It's going to destroy us.