Society

The news that the CPI rose to 3.5 percent doesn’t seem to have affected the markets, but the cost of living is soaring. Mervyn King has written to Alistair Darling predicting that inflation will fall back to the benchmark 2 percent over the course of the year, and that the current explosion is a result of short term factors such as the restored VAT rate, a 70 percent rise in oil prices and the depreciation of sterling. David Blanchflower is right: inflation may eat a little of Brown’s debt mountain and it will help those who now hold negative equities on houses. But it does precious little else that is

I couldn’t let today pass without a response to Danny Finkelstein. We do agree on the ends, but not the means. And, as he says, this debate mirrors one about the methods of reform. So, let¹s go through his points. 1. ‘I am afraid I think Fraser overestimates (a lot) how politically difficult this is all going to be. And how personally painful for a lot of people. And how technically difficult.’ Painful, yes, but necessary ­ and it will be resented if Cameron is not straight about the cuts he will have to make. But how painful? Gordon Brown¹s great intellectual victory is to persuade the Tories that ‘cuts’

It’s not quite the “we got him” moment, as when US soldiers unearthed the fugitive Iraqi dictator. But the capture of Mullah Abdul Ghani Baradar, a top militant commander who is said to be second in command to elusive Afghan Taliban chief Mullah Mohhamad Omar, may be even more significant. By the time Saddam Hussein had been caught, the US was fighting a different enemy, though the Pentagon leadership had not realised yet. Baradar, who was in charge of the insurgency’s day-to-day operations on behalf of the so-called Quetta Shura, the Taliban’s leadership council, is very much today’s enemy – and his seizure should not be underestimated. Doubts remain as

The crisis in Greece shows just how quickly a fiscal crisis can blow up. Just two-and-a-half weeks ago, Greece was able to raise several billions in financing, with demand for almost 25 billion of their debt in an auction. The very next day, their bond market collapsed and the rout began. Just ten days later, they were turning up in Brussels with a begging bowl, and inviting the European Commission and IMF to Athens to start making their tax and spending decisions. There can be nothing worse for a government than having your economic policy dictated by the markets, and then other governments, as access to finance disapears. All you

There’s plenty of buzz this morning about George Osborne’s new policy proposal: allowing public sector workers to run schools, job-centres, hospitals and other services as cooperatives. James Crabtree, Tim Montgomerie and Spectator.co.uk’s very own Martin Bright have exhaustive posts on why this might work in practice. It is, as they all suggest, pretty radical stuff.   But it’s also clever politics.  It is something which appeals directly to people on the left (like Martin), as well as public sector workers.  When so much of the Tories central “post-bureaucratic” agenda is about decentralising power from the government to individuals or to private enterprise, this says that the public sector won’t be