Thursday, 6 October 2011

"Child like" government continues

Even Conservative ministers believe their own colleagues say child like things, especially concerning cats so it seems.

Then we have our Chancellor George Osbourne in January 2009: "Printing money is the last resort of desperate governments when all other policies have failed." October 2011: The Bank of England has said it will inject a further £75bn into the economy through quantitative easing.

So when Osbourne has a couple of minutes be could leave a comment on this blog to say which statement is correct.

I have read no justification of this new government policy, it was abundantly clear in late 2008 -09 there was a real need to inject liquidity into the economy.

In 2011 we must genuinely be fearful that this latest round of quantitative easing will lead to inflationary pressures, with the RPI now at 5% this additional money has to end up costing someone.

That someone will be people on low to medium incomes, Osbourne's policy seems to want to inflate our debt away without tackling the financial interests that caused the original financial crash.

Osbourne will offer some free money to banks and the rest of us will pay for it, sounds familiar doesn't it.

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