CPI about 2% RPI about 4%

However Adam Smith lived and wrote TWON a long time ago.

But you forget John that Adam Smith believed in sound money backed by a Gold Standard. Not the almost infinitely corrupted type of funny money we have had since the end of the first world war.

There are other things that drive inflation now days apart from wars. Caused mainly by YOUR political class cooking the books. But also by other nations people not wanting to eat grass while working 90 hours for $30 a week forever.

You may well be able to ignore inflation, like myself. But those who barely get though the week as it is, while working full time, may have a very different way of seeing things.

The poor bastards were constantly told, that there would be NO MORE BOOM AND BUSTS. Very unfortunately too many of the silly buggers believed their Labour politicians and even more The Labour Parties obviously fascist British establishment Broadcasting Corporation.

However as you most likely have noticed I hope, you Mr John Redwood MP are a Conservative politician. So why have you and your party not spent more time and effort for the last 11 years WARNING ordinary people that no more boom and bust, is literally IMPOSSIBLE under our present corporate capitalist system?

Not just because Labour politicians are all a corrupt bunch of lying con men on a gravy train mission from hell.

But because the people that run the worlds banking system design booms and busts to ALWAYS happen, as the primary way that they stay running the worlds banking system, not to say the entire world, very profitably.

OK some of the minor league players lose vast amount of created borrowed money every now and again, but over time the big league players get it all back. Especially when the Tory party are allowed back in, for the the main purpose of paying off the bills.

The people that lose are us THE ORDINARY PEOPLE, that actually produce ALL the REAL wealth, love and human compassion on the planet. It is us who’s marriages, homes, small businesses, and futures, go down the river. It is us that are left down the creek without a paddle or even our own life raft. Not those of the political class, the ruling class, and certainly not your mates in the City of London.

I will vote Conservative at the next election. But not because The Conservative party are any less part of the scam then the Labour Party, or indeed the Lib/Dems are. But because I know the bills have to be paid back one day, and the quicker the better.

I expect house prices to fall this year, and the pace of the fall to gather momentum. I expect more personal and corporate insolvencies and more reposessions.

I expect New Labour to stick with the old plan of borrowing money, chucking it around the economy in the form of tax credits and pointless government initiatives and hoping nobody notices how much they’ve run up the national credit card.

I expect the overall tax take to rise. There will be a round of taxes on all the things they can get away with taxing, such as alcohol and motoring.

A keep hearing people say that in the second half of the year everything will get better, there will be loads of cheap blue-chips worth buying, house prices will be back on the increase and everything will be hunky-dory. I disagree, I think the next few years will be very painful for many people in the UK.

Reply; NO. IT DEPENDS HOW MUCH MONEY IS CHASING HOW MUCH GOODS.

Unless things pick-up in the US pretty soon I fear the UK payroll of global companies could be reduced to just those functions (e.g. sales, customer support) that absolutely must to be performed locally with ostensibly higher-value functions relocated to Asia simply because they can (in theory) be performed anywhere. Should Britain lose a significant proportion of the FDI it has attracted in the past the loss of tax revenue would ultimately be felt by those on the UK state payroll so public sector frugality is very much required now in Britain. It may indeed already be too late.

I quite agree!

I concur with your last post too, although I fear it’s too late to change course on Northern Rock.

I think he maybe almost alone in such a conclusion.