David Cameron has recently talked down the recent house price rises as more people are identifying its bubble like nature. He has used the recent 2007 peak as guidance for normality. It seems a distant memory when Mr Cameron was taunting Gordon Brown regarding credit bubbles and debt issues. As stated in the article if we are currently only 15% off the 2007 peak in real terms then we will soon be in real terms back at the bubble price and everyone knows with historical hindsight how that turned out. The Government deficit and debt levels are worse than 2007 and the interest rates are far lower along with Quantitative Easing propping up asset prices. Its funny how politicians when out of power convey the image of responsibility but when they obtain power act in the same reckless manner as the predecessor. I agree with a recent article published on moneyweek, both the Bank of England and the Government have no political will to reign in all these shenanigans and the real cause behind rising house prices is monetary policy, as I detailed in my eye of the storm post.
Any centralised system is doomed to failure, lawful anarchy based on the non-aggression principle is the end game for society. Democracy was a substantial step forwards for human liberty but suffers from mob rule and therefore acts of third party aggression. David Cameron is acting rationally as any democratic leader does. He is using monetary policy to engineer an artificial boom in order to obtain as much of the mob rule to win next years election. There is no reason for the Prime Minister to worry about the fallout. Political will, to do the "right" thing, is an illusion. In reality it never even existed, its all about the majority mob rule. Many just pretend it does.