It looks like the governments policy of printing money, sorry quantitative easing, is beginning to work: inflation has begun to rise. Before we know it will be in double digits. All that horrid debt will just melt away.
In the thirties, inflation was sold to the American people as a solution to all their problems.
"What a man. What a leader. Yowza! Happy day's are here again" The evil snot goblin will be getting Princess Mandy to sing that tune soon.
If a measure of inflation that included asset prices was used then inflation has been running at around 20% for years. The evil snot goblin has extended his bi-polar mind into the UK economy. On the one hand we have had rampant inflation in assets such as houses and equities but also low inflation or even deflation in consumable goods. Of course only the low or falling priced items are used to measure inflation via the CPI. The government has deliberately encouraged some assets to have high inflation rates so they can milk the wealth effect for all its worth. This is the means by which they have retained power over the last 12 years. The low inflation has been bought by flooding the UK with extra workers driving down wages. Although most people haven’t realised this yet, living standards have fallen dramatically for many in the UK.
For anyone that has ever voted Labour, a message
Update 19 Jan 10: Dec CPI +0.6 to 2.9% exceeding [some] expectations