Unexpected to whom? Certainly not me! This latest news that UK inflation has risen to 3.4 per cent in March is, I fear, merely the beginning.
The 'wait-and-see' stance of the Bank of England I'm afraid illustrates to me that they are simply 'headless-chickens' peddling their spin furiously (to mix metaphors in quite an awful manner - so sue me!) because they know disaster is looming, but know that the mess the Labour government have got us into is going to get worse and they cannot see a way out. At least the BoE Monetary Policy Committee, whilst holding interest rates at 0.5 per cent, have decided not to pump yet more 'invented' cash into the economy, the so-called 'quantitative easing' mechanism. Thank goodness for small mercies!
I really cannot write any more about this, I am so angry. I've been boring on about it for months and years, much good it has done me, except perhaps to help let me blow off steam and possibly keep my blood pressure under some kind of control. The profligacy of both the Labour government and far too many individuals in taking on far too much credit is finally coming home to roost! One cannot, over the longer term, spend more than one is earning - the markets (not least the foreign exchange market) and inflation are the unavoidable 'corrective mechanisms' that are going to be unleashed on us once the election is over, whichever political party 'wins'; at least with the Conservatives there would be people in power with decent ideas for halting and eventually reversing the rot. But any politician who doesn't talk about the inevitable fiscal pain that most people are going to have to get used to post-election is merely kidding themselves and the electorate; time to 'tell it like it is'! Here are some of my posts on this topic over recent years:
18 June 2005 - We're all doomed ... at least potentially ... no, seriously!
16 August 2007 - Investment markets - to stay in or to sell...
16 July 2008 - The financial 'crisis' - to blog or not to blog
16 September 2008 - Bill's off again ... back to Spain (the title is relevant, trust me!)
30 October 2008 - What's really going on in the economy
10 November 2008 - Interest rates cut. Tax to be cut? Borrowing to go up?
15 December 2008 - Far from alone
28 February 2009 - The inflationary bubble that is being constructed
2 April 2009 - G20 result in summary - 'global quantitative easing'
1 July 2009 - Mr Gordon "0% increase" Brown
8 September 2009 - Labour forced to come clean over budget deficits
20 January 2010 - So inflation is kicking-off is it? Not a surprise given the idiotic policies of our Government!
As I wrote in the final article referenced above, it gives me no pleasure at all, indeed I am filled with considerable apprehension, when I write - I told you so!
I hope the electorate will remember this when they go to cast their votes on 6th May and punish the current Labour government with a crushing defeat! It would be absolutely wonderful if Gordon Brown were to be defeated in his own constituency - that would be some kind of poetic justice! Although I know it is probably unlikely, I can dream, can't I?