Man in a Shed: Real inflation is much higher than 2.2% for real people

Friday, June 23, 2006

Real inflation is much higher than 2.2% for real people

Yesterday I read that Scottish power will raise my gas bill by up to 15%. ( A EDF keep letting me know about price increases. ) Gas and Electricity are major costs the our house hold, as is Council tax ( up 80% since Labour came to power. )

The way inflation is measured was changed (ie fiddled) recently by the government. But people on low incomes or fixed incomes know they are not being told the truth as much as I do.

Why is the media ( with the exception of today's Dailey Telegraph) so quiet ?

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The pound in your pocket

"We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists." James Callaghan

“The trouble with theoretical economists is that they don't understand that when you have a deficit, you can only finance it by borrowing, and you've got to persuade people that it's worth lending money to you and that they'll get their money back... there's no way of escaping it.” Dennis Healey during the 1976 Stirling Crisis.

"Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens ... Lenin was certainly right. There is no subtler, no surer means of over-turning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." John Maynard Keynes, 1920.

"To preserve [the people's] independence, we must not let our rulers load us with perpetual debt. We must make our selection between economy and liberty, or profusion and servitude." Thomas Jefferson, President of the United States of America,1801-1809.

Inflation is taxation without legislation .. Milton Friedman