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Old 24.03.2008, 14:20
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Re: Weak Swiss Franc

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What I found particularly interesting is that Barclays Bank was apparently so fed up with the unreliability of the figures (you can't base a planning on figures that change with the weather) that they made their own inflation index which is in principle indicating what the government index should represent, it's called The Barclays Capital Essentials Inflation Index.

The piece in the link details just how large the gap between the government spin and the real world is, and it's shocking.

Good info about that index - I don't suppose you know if it's freely available anywhere on the net?


There's a general ignorance on the part of the US/UK public about inflation and I don't think that it's coincidence that there's a lack of informed comment in the mainstream media. Essentially it has been used by our governments as a 'super-stealth' tax. It's particularly effective at leeching from savers and the prudent, though it hits everyone who has some sort of cash income.

God only knows how the governments are going to hide the inflationary effects of the bank bailouts - I've got a feeling that they've overstepped the mark this time. And whereas it's an easy option for a government to fire up the printing presses to get the financial sector out of trouble it's nowhere near as easy to manage the economy once rampant inflation takes hold as it surely will.


For what it's worth I certainly perceived inflation as low in Switzerland, certainly compared to the UK where prices are rocketing due to effect of years of irresponsible borrowing resulting in the pumping of excess cash into the system.
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