Robert Peston continues to muddy the water

March 14th, 2012

How about this ridiculous comment from the BBC's Bilderberger-in-chief Robert Peston in response to the UK chancellor George Osborne's plan to sucker any willing victim into 100 year bonds…

"Even so, as taxpayers we should probably be grateful that gilt yields - the implicit interest rate paid by the government - are so low at the moment. It means there's more of our tax money available to fund squeezed public services."

For a start it's a nonsense sentence because it assumes that yields are low because of natural market phenomena. We know that yields are only low because the Bank of England is holding them down at all costs, and the way it does this is by creating more money. When interest rates are controlled in this manner, it means the pound is being devalued. So what you don't lose in overt taxes with representation, you lose in the much more damaging inflation tax, which is without representation.

Apparently we're also supposed to be grateful that our government is being enticed to borrow more money and that it's suckering in the public who blindly trust them.

The BBC just carries on confusing the issue. I once wondered if they had a backwards understanding of the economy but I think it's clear their "mistakes" or "oversights" are deliberate, as can be seen from my recent exchange with them…

14/10/2011 letter to British Broadcasting Corporation