Tuesday, 5 May 2009

Cameron campaigns for BNP

Cameron urges 'vote for change'
"enough is enough"; tell Gordon Brown "what you think of him"; "letting our politics descend into a quagmire" and a few other incendiary quotes are listed in the BBC article.
Audio is available here

Monday, 4 May 2009

Why printing money doesn't necessarily cause inflation

Paul Krugman, most recent Nobel laureate for Economics, shows on his blog a lesson from Japan on how increasing the money supply, even by very large amounts WILL NOT CAUSE INFLATION IN A LIQUIDITY TRAP. The key graph I'll include below.

Whilst during a period of inflation, such a monetary expansion would have made things much worse, in a situation like Japan's since 1990, or the Western world's since last summer, it is all you can do to prevent massive, destructive deflation.

As ever, the Onion knows the way forward

Nation Ready To Be Lied To About Economy Again

Includes such gems as:
"[A]n overwhelming majority of citizens said they believe that, during these
extremely uncertain times, our leaders have a responsibility to come
together,
sit the American people down, and lie through their teeth about
everything from
misappropriations of taxpayer dollars to the severity of the
credit crisis."

Or,
""Please, treat me like a child. Treat me like a five-year-old," Sacramento
resident David Cooke, 64, wrote in a letter to Congress."

This will almost certainly be quoted by other, more respected Economist bloggers. I'll edit this post to link to them, then.

Sunday, 3 May 2009

Toxic assets

Sorry, but it had to be done.