Thursday, May 13, 2010

Why democracy will give us massive price inflation

Take a look at this story, in the ToryLibDemGraph:

=> Five million home owners unable to afford interest rate rise

Will our magnificent principle-led politicians in Downing Street subject five million homes (and ten million voters) to possible eviction, due to their inability to cope with interest rates above 1%?

Of course they won't.

They will keep rates low to 'help' these people. (And keep their powers and incomes and pensions, by securing their votes.)

To keep rates low, they will have to keep ordering the Treasury and the Bank of England to keep printing money.

This will eventually cause massive price inflation.

It will be seen as a price worth paying, by the politicians, to keep themselves in power, incomes, and pensions.

In the meantime, the British economy (what's left of it), will be destroyed.

We'll all still be in our houses. The only problem will be that it won't be worth living in the UK any more, except for emotional reasons. (Such as those experienced by white farmers in Zimbabwe who decided to stay.)

What fun.

Sell bonds. Buy gold. Make sure this gold cannot be confiscated by government or stolen by other thieves.

You doubt me? Let's talk again in ten years' time.

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