Have we learned nothing?

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FT Alphaville » Mervyn readies his pen.

The consumer price index approaches 3% so quantiative easing must end, intrest rates must rise and we must enter a depression.

All that when the risk is that on fundamentals deflation remains highly likely because soemtime soon China is going to have to flood the market with unwanted goods.

Have we really learned nothing? Do we really think that inflation is still the only important economic indicator?

I despair.