Deficits, schmeficits.

This morning, the deficit reality came in worse than projected:

...the fall in borrowing could not fully offset the impact of the disappointing April, leaving the deficit for the financial year to date at £27.4bn, a record for the period as the Government borrowed £1.5bn more than a year ago.
http://www.telegraph.co.uk/finance/economics/8590527/UK-deficit-hits-record-despite-1.1bn-axe-on-borrowing.html

One of the key reasons behind devaluing ones currency, is to become more internationally competitive, favouring local producers over foreign. This should in turn mean higher exports and fewer imports, which over time will reduce the deficit. So, when this in fact doesn't quite turn out as expected, what could possibly be the solution?

...it should not be assumed that the £200bn quantitative easing (QE) programme is over just because inflation is more than double the target level at 4.5pc.
http://www.telegraph.co.uk/finance/economics/8590058/Bank-of-Englands-Paul-Fisher-says-more-QE-possible-despite-high-inflation.html

When all you have is a hammer, everything looks like a nail. That's right, the BoE is starting to bang the drums, hence preparing the proles for another round of Quantitative Easing.

No doubt, it is partially this realization which has driven gold to an all-time high when denominated in Pound Sterling this morning. £957.63/oz as we speak. But if the madmen at BoE actually go through with this, no doubt we'll see £1,000/oz hit in no time - unfortunately, this will almost certainly be with the companionship of further price increases at the supermarkets, and the petrol stations.

And it's worth recalling that it was inflation which brought out the masses in the Middle East.