I’ve been fulminating all day about BBC news online’s portrayal of the latest round of ‘Quantitative Easing’ as “Bank of England Injects further £75 Billion into the economy”, so imagine my relief when I read Dan Hannan’s analysis of this nonsense. George Osborne has let us down on this one – QE, printing money, whatever you want to call it, is like adding more water to already diluted cordial – it spreads the taste by weakening it. All the value in the money we had is now spread over an extra £75 billion, and that was already spread over £200 billion printed by the last lot. There is not one bit of extra value, so today anyone with any cash has very quietly been taxed yet again, but you won’t feel the pain until it turns into inflationary pressure in the not too distant future.
If printing money is so good for the economy, why won’t the government let all of us do it?
History is littered with such experiments – “spend our way out of trouble”
the result is invariable inflation, in some cases rampent inflation where the value of money declines on a daily basis.
There is still so much waste – more pruning will provide benefit not merely pumping in more printed money