How labour will confiscate your savings

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The public finances are in a mess. The level of Government borrowing cannot be sustained. The prospect of serial strikes by public sector unions looms. International agencies, the markets and the central banks eye Britain with doubt.

But Gordon cannot increase taxes much more – he cannot increase taxes on the rich beyond the (pointless and negative) level of 50% or revenues will drop. He can’t muck about with VAT for fear of really screwing the “recovery” – assuming there actually is one. And there’s only so much cash that can come from tinkering with allowances, duties and the like.

What Gordon would really like is to get his hands on our savings. On the billions we have squirreled away for our retirement, to pay for long-term care, to provide for our kids education, to do any number of little things we thought were important. But nothing is more important than Gordon pretending he doesn’t have to cut public spending. Nothing. Not your retirement pension, not the lump sum to pay off your mortgage, not the cash sums you’d like to give to your grandchildren. Nope. Gordon needs that money.

And he’s going to get it. Not by confiscation – that wouldn’t be popular. He can’t introduce a stinging wealth tax without plumbing new depths of unpopularity. But he’s going to get it…

…he’s going to use inflation to make your meagre savings get him out of the mess. Let it rip…last month +1% - the most rapid increase on record. This month +0.6% - the second biggest monthly increase. And next month? Expect similar.

The Government’s strategy is to use inflation to reduce the impact of massive debt and to protect Labour’s key public sector voters. That’s why they printed £180bn in so-called “quantitative easing”.

Inflation is 3.5% now. Expect 4.5% - even 6% - over the next few months. And watch the value of your savings shrink! Transferred neatly into the reduction of the real value of government debt. Let it rip!

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