Earthquake + inflation is more than 3%. 2008-02-07

Wednesday 27th February 2008 9.27 p.m.

Well, we in Britain had an earth tremor that every news agency is calling an earthquake, 5.2 on the Richter scale. It's the only piece of exciting news today. ... Didn't they see that gold has made a new all-time high? And that we have galloping inflation?

To get an idea of inflation in Britain, take a look at these two headlines: British earthquake to cost in excess of £10m Last Updated: 1:54pm GMT today and ... a bit later ... British earthquake to cost £30 million Last Updated: 8:11pm today.

Good grief! That's a 200% increase in 7 hours! Annualised that would be, now let's see. Time interval = 6 hours 17 minutes, just over 1/4 of a day. Anyway, I calculate it as: 1.0184053130265910327933296258242e+669 %, which is in fact about
1018000000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000% annual inflation.

I think our government tells us that inflation is about 3%, so they don't really have much credibility, do they?

To celebrate this realisation, gold made another all-time high today around $965 and silver is now over $19.