Inflation is coming

Looks like I'm not the only person that thinks that the threat of deflation is bunkum, a spectre conjured up in order to let the government get away with delivering a huge inflationary spike to inflate away its massive debts. The collective judgement of the bond markets appear to agree with me. After yesterdays failed auction of normal gilts, which failed, today there was an auction of inflation linked gilts, which was a roaring success. Clearly there are a lot more people out there worried about the future inflationary impact of Labour's policies than the MSM would have us believe.