Rishi Sunak has spent weeks arguing that the biggest problem in the UK today is inflation, and, he is right on this matter. But he doesn’t ever mention the fact that it was his policies that created the monster of double digit inflation announced today. Measured by the Consumer Prices Index, the “official” rate of inflation is 10.1%, but inflation has been building in the UK for over twelve months. During the pandemic, printing money (quantitative easing) was allowed when Sunak made an agreement with The Bank of England to restore any losses the bank might suffer in future years. He signed a “Deed of Indemnity” which places the British taxpayer on the hook for all liabilities. The Bank “printed” hundreds of £billions and this cash was then introduced directly into the economy in the form of furlough payments, handouts and loans, not to mention various “schemes like “eat out to help out”.
It is well known that increasing the money supply in this way is guaranteed to create inflation, you only have to look at the historical precedent, yet Sunak wants everyone to believe that our disasterous double digit inflation has suddenly appeared from nowhere and it’s only he that can defeat it. Who is he trying to kid? Next, he’ll be telling us that you can nationalise the energy sector for 2.8 billion quid! About a third of inflation in UK can be put down to rising wholesale gas prices, but the majority of the rise in inflation is caused by QE which Sunak approved. He says he had no choice, but, there was a choice between locking the country down or protecting the older folk in society. From where we sit today, the lockdowns were a wanton act of vandalism on the UK economy, and the sad fact is, that older folk will now be hardest hit by inflation in the coming Winter months. We’ve been Sunakered!