no one in authority will tell the public what is coming. Why? Purely and simply, they do not want consumers to stop spending, even if it’s against the public interest. They will sit in their plush surroundings, pampered and fawned upon as they hope and pray that “something” will happen to change the outlook. Look closely at the 2 charts above, you know I like relationships and especially when relationships break down. The projections disagree with the previous relationship. We are to believe that GDP will rise back to and beyond previous peaks after inflation turns down and heads for the floor? Why do they think inflation will go that way? Do they truly believe it will “just happen”? GDP rose when inflation rose, they are interconnected. The last time inflation was stuck around 1% GDP dropped. Only the Bank of Englands increase in money supply goosed GDP up. Now they project it will be different next time?

So as we descend into the pit, the abyss that is the deflationary end to this sorry story, the powers that be will sit back in amazement as yet again the consumers, the public, the voters allow themselves to be sacrificed to save the elite. As was once said about the troops and officers in the First World War, the troops were like lions, led into battle by donkeys. So while Brown, King and Darling bray away to each other across Whitehall, feel afraid about the direction they are leading you.

Ignore the braying donkeys, stop spending and start saving, lock in some high rates and whatever you do, get your own map.

Excuse the spelling mistakes, I’m long on rant and short patience tonight.

Commentary by Mick Phoenix

on behalf of CA Letters

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. The views in the article are for informational purpose only.