Interestingly, the Governor was completely straightforward about the credit markets. The banks have been profligate and foolish in their lending. They have lost a fortune. They are now rebuilding their balance sheets. When they have completed that task, they will start lending again. By then, house prices will be rather lower than they are now. It will take a year or two, but then prices will start growing again.

In other words, if you want to sell your house right now, you face a real difficulty and, if you can afford to buy one, you will get a bargain. If you are trying to do both, you had better go to a new housebuilder who has to sell his stock and will take yours in part exchange. Otherwise, you are probably going to have to stay put for a year or two.

But the Governor had something even more interesting to say. He told us that the rise in the cost of food and fuel was even more important than the credit crunch. People in China and India are getting richer and have started competing with us for food and fuel. This process is unstoppable and we just have to get used it. That means that, as a nation, we must either work harder or consume less. The Government, according to the Governor, cannot artificially reduce prices, but there are five things it can do straight away which will help, at least in part.

The Government can stop buying food in order to destroy it by turning it into biofuel. It will offend the nicey, nicey liberals, but it will make food cheaper.

The Government can allow farmers to plant genetically modified foods that are resistant to drought, pests and disease and will increase the world's supply. It will offend the nicey, nicey liberals, but it will make food cheaper.

The Government can withdraw from the Common Agricultural Policy so that we can import food from poor countries. It will offend the nicey, nicey liberals, but it will make food cheaper.

The Government can start building nuclear power stations so that we become less dependent on highly priced, imported fossil fuels. It will offend the nicey, nicey liberals, but it will reduce average energy costs and increase our energy security.

The Government can reduce the number of fit and able people it pays not to work and thus ensure that, as a nation, we produce more and can consume more. That would send the nicey, nicey liberals into an apoplectic rage and it would be a delight to behold. We have been giving in to these people for far too long and they richly deserve their inevitable comeuppance.

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