The Bank of England announced a third dose of electronic money creation to boost the flagging UK economy. Expressing concern that the eurozone crisis, together with George Osborne's austerity programme and a rationing of credit, will stifle growth in 2012, the Bank said it would expand its quantitative easing programme (QE) by £50bn over the next three months.
It has now pumped £325bn, equivalent to about a fifth of GDP, into the financial system since Britain plunged into recession three years ago.
It has now pumped £325bn, equivalent to about a fifth of GDP, into the financial system since Britain plunged into recession three years ago.
Here we go again and reading some of the comments in the papers is so funny. QE is the financial rape of middle England, the old and the future generations. By the time it all goes belly up (and it will,) the few elite that benefitted will be long gone to their tax havens.
Selection of comments
The definition of insanity is doing the same thing repeatedly and hoping/wishing for a different outcome. Quantitative easing has been tried repeatedly by the Bank of England and by any standard or measure has not worked. I can see no rational reason how or why it should work this time.
Quantitative easing will have a calamitous outcome for this country in the long term, spiralling inflation and very, very high interest rates.
If it prudent for the government and the Bank of England to print money in hard times, then it must be logical for the individual to print money for themselves when they are hard up or have no money.
When you hold such corrupt philosophic principles, you can't help but get the economics wrong.
Ignorance is not immoral, but being unwilling to learn from experience is; it becomes a crime when the people who refuse to learn are dictating the economy with an iron fist. Hooray !! Let´s print more money ! Never mind the lessons of history. Apparently we are the first civilisation to successfully debase a currency and thereby create jobs and wealth. Alchemy at its best.
Ignorance is not immoral, but being unwilling to learn from experience is; it becomes a crime when the people who refuse to learn are dictating the economy with an iron fist. Hooray !! Let´s print more money ! Never mind the lessons of history. Apparently we are the first civilisation to successfully debase a currency and thereby create jobs and wealth. Alchemy at its best.
Instead of giving QE money to the banks, why not give every family in the UK 10,000 pounds. Seven thousand per average family to pay off their debt and three thousand to spend and give the economy a boost?