The article is behind the subscription wall but this is from the dead tree version:
Of course, a fall in sterling still means an implicit wage cut – it's just that we don't see it in happening in our wage packet. A cheaper pound means the imported plasma television is more expensive, as is everything else that is imported, including food, so our real standard of living has been cut. The charm of this approach is that the pain is spread equitably.No, no, no.
There's nothing equitable about this at all. The financial crisis has been caused by imprudent citizens, by incompetent bankers and, above all, by central banks acting under the control of economically ignorant politicians.
My mother's lifetime savings are being used to fund her increasingly expensive residence in a nursing home. Mr Kerevan thinks it's equitable for her savings to be depreciated in order to bail out spendthrift citizens and politicians. Perhaps she should have blown the lot.
I'm in a somewhat similar situation. I have no debts and a bit of savings. And it took a lot of hard work to get to this position. I can well remember when my total wealth was about £50.
To sort this mess we need to have a massive cut in public expenditure and a return to sound money.
My friend Brian agrees.