Regular and loyal Sloggers will recall my sometimes serious but often flippant forays into what I call Indeflation: that is, (1) the inability of economics academics to make their bloody minds up whether we’re going to have inflation or deflation; and (2) my own growing belief that, as things get worse, we are going to have the two side by side – indeed, this is already happening.
Yesterday early evening, however, I had one of those blinding flashes, and it wasn’t just another incompetent attempt to rewire the kitchen. It was this: they – the horrible, nasty They – are going to deflate our net worth, and inflate theirs. All the gold will head towards the banks and then be rapidly revalued upwards before we can grab any of it; while all our salaries and pensions will be reduced and stolen respectively, thus ensuring that it will take our entire cash hoard at any given time just to purchase a mouldy courgette. Continue reading