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Thursday, April 29, 2010
Hyper Inflation Is Back
But it's a good thing because it applies to property, where the normal rules of inflation being harmful magically don't apply. The people who would normally object to a transfer of unearned wealth from the poor to the rich are also silent.
Well, what a surprise. The government/Bank of England create a shitload of money and inflation results. But, as you imply, this is not "official" inflation, it's just a rise in . . er . . the price of property.
But it's not normal inflation - a house is clearly an investment good as well as a consumption good.
"The people who would normally object"
I think this is a bit silly. Who do you mean exactly? If it's 'the left', then are they really the people who are wildly keen on house price inflation?
Well, what a surprise. The government/Bank of England create a shitload of money and inflation results. But, as you imply, this is not "official" inflation, it's just a rise in . . er . . the price of property.
ReplyDeleteBut it's not normal inflation - a house is clearly an investment good as well as a consumption good.
ReplyDelete"The people who would normally object"
I think this is a bit silly. Who do you mean exactly? If it's 'the left', then are they really the people who are wildly keen on house price inflation?
I wasn't just thinking of the left, the right comes up with various ideas about poverty whilst still encouraging house price inflation.
ReplyDeleteSo much bollocks talked today.
ReplyDeleteInterstingly the BBC was referring to 'Property Inflation reaching 10%' but not parading this as somehow being good news as they used to.
ReplyDeleteThat's good to see.
ReplyDelete