Sunday, Jul 19, 2009
No political party will make the necessary cuts
Telegraph: If the Government fails to make cuts now it will be racked with gilts
Why is it suddenly a good idea to spend our way out of recession and print money? The debate over the Bank of England's "quantitative easing" scheme – or QE – has been practically
non-existent.
Posted by devo @ 10:28 PM (531 views) Add Comment
6 Comments
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1. Tpbeta said...
Many are now saying this is something called a "balance sheet recession" where not only is printing money a good idea, it's essentially the only option to avoid disaster. The guru of this philosophy is a guy called Richard Koo from Nomura, basing his conclusions on his study of Japan in the 90's.
http://www.businessweek.com/globalbiz/content/mar2006/gb20060303_422985.htm
If he's right then we're in for the mother of all HPCs of course, so a friend to the bears.
2. Ndg said...
I sent a formal letter to my local Con. MP in March this year to register my concerns re: MPC & their dubious reporting and oversight of proposed QE. My MP agreed with my reservations stating "They (Faux Labour) have no idea what they are doing". Nice one.
My MP forwarded my letter to the BoE. I then received a letter from Merv a few weeks later, telling me that "everything is OK, this method has already been successfully implemented by the Federal Reserve in US, so please don't worry, everything is OK". Very reassuring.
I've doubled my dose of fluoride as I was beginning to get concerned. Mmmmmm, lovely fluoride. What was I saying?
3. Ndg said...
Oh yes, now I remember, can anyone tell me the scheduled timing for the global 'bank holiday' this year?
Thought I'd better have a bit of cash on hand and maybe even a few cans of soup.
4. last_days_of_disco said...
@Tpbeta
Ugh, just read that article. We are in for one hell of a ride.
5. paul said...
@Tpbeta,
That article is rather old. I agree in principle with your conclusion though. I've always thought it a little naiive and silly on the part of the Fed and Bank of England that they could somehow dodge the bullet that hit Japan in the 90s.
6. Ndg said...
This is not the bullet that hit Japan. It's the boomerang that keeps hitting Argentina.