Thursday, November 29, 2012

Hard-earned Anti-inflation Credibility At Risk

According to Governor Bheenick as inflation is expected to rise to around 6% by next year. And that's before the ridiculous 3.5% annual depreciation assumed in the recently presented budget. The soundbite also contains interesting insights into how the BOM tried to neutralise the increase in volatility in the forex markets caused by the irresponsible intervention of the National Resilience Fund -- which previously appeared as the Business Growth Fund.

Talk about a resilience fund, eh? It attacks our currency which makes 99% of us poorer. The pompous name is to try to fool us into believing that the extreme trickle-economics implemented since 2005 has worked. It has not.

We know that just by looking at the tax rates and growth rates over the last seven years.

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