Thursday, May 07, 2009

Bank of England to print money to stoke inflation

Well that's what the headlines should say.

The extra £50billion to be printed will mostly be given to the government to pay public servants in inefficient, but Labour voting sectors, and put off pulling the government finances out of their tail spin till after the June elections and maybe further.

The money will be taken by stealth from all those of us who have the misfortune to have their wealth denominated in Stirling.

It will also postpone the point at which the government can no longer finance its own debt.

None of it the happy clappy glad Gordon Brown is prime minister news the BBC paints.


Wyrdtimes said...

This seems to have gone virtually unnoticed. Insanity!

wildgoose said...

Seeing as "deflation" is now completely busted as a scare story, (and was always bogus in any event), that can only mean that they know they can't find buyers for all the gilts they are issuing.

It'll be a trip to the IMF next.

Don't forget, Peter Mandelson has already been saying that going to the IMF would be nothing to be ashamed about...