Rampant out-of-control inflation!
You know you've fallen down the rabbit hole when you read something like this:
Eleven million homeowners are facing higher bills after the Bank of England raised interest rates to their highest for five years.And what exactly is this terribly worrisome British inflation rate, you ask? Nearly the 11% of 1990? The 22% of 1980?! The 27% of 1975?!?! No. It is the haunting and ominous 3.6% of September 2006.
The Bank said the quarter-point hike in the base rate to 5 per cent was necessary to combat above-target inflation swollen by record increases in fuel bills. . . .
Economists warned that rates might have to rise several times - and as soon as February - to prevent inflation running out of control.
And note that this is by the Retail Prices Index (RPI) which tallies inflation significantly higher than the current favorite measure, the Consumer Price Index (CPI). Per the British CPI, inflation is running at a dangerous 2.4%. Never mind that there is not a scrap of evidence to indicate that inflation rates as high as 8% actually damage real economic growth. Yet the wise old Bank of England wants us to believe that anything over 2% CPI growth is somehow sinister and perilous.
And this is exactly the kind of crazy thinking that Ben Bernanke wants to bring to the United States.
3% as "high" inflation? Well, in Wonderland, you know, when I use a word, it means just what I choose it to mean, neither more nor less.