THE G.B. POUND The U.K. is the first region in the World to see
inflation return. “King Says U.K. Inflation Jump – Temporary –
as Rate Reaches 3.7% “ May 18 (Bloomberg) – Bank of England
Governor Mervyn King downplayed the threat of inflation after
consumer prices jumped at the fastest annual pace since 2008,
saying the surge is”temporary” and masks slack in the British
economy. The Bank Of England will, obviously, not confirm that
the U.K. is entering a period of inflation. However, the U.K.,
like most of the world, has printed tons of paper money in order
to stem off the world wide recession. When there is an excess of
paper currency floating through an economy, prices are
automatically forced up. The mechanism is quite simple: A buyer
wants to purchase an item, such as a car or a loaf of bread. He
has extra printed currency in his pocket, given to him by his
employer who received it from the government. The seller knows
this. He raises his price. The buyer buys! ( What is paper money
good for, if not to bu