Tuesday, February 8, 2011

Paul Segal and England's inflation issue

He talks about inflation expectations in the UK.
The real meaning of inflation in the UK is that long term inventories are at high risk of failure.  England is engaging in partial default with its external creditors and is unable to engage in long term planning.  Their economy goes nowhere until they fix the problem, they are still disequilibriated, mainly at the central government level.  They grow then they rebuild a stable inventory plan, starting at the long end.

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