Man in a Shed: Bank of England to print money to stoke inflation

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.

2 comments:

Wyrdtimes said...: This seems to have gone virtually unnoticed. Insanity!; 11:08 am
Unknown 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...; 7:58 am

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The pound in your pocket

"We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists." James Callaghan

“The trouble with theoretical economists is that they don't understand that when you have a deficit, you can only finance it by borrowing, and you've got to persuade people that it's worth lending money to you and that they'll get their money back... there's no way of escaping it.” Dennis Healey during the 1976 Stirling Crisis.

"Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens ... Lenin was certainly right. There is no subtler, no surer means of over-turning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." John Maynard Keynes, 1920.

"To preserve [the people's] independence, we must not let our rulers load us with perpetual debt. We must make our selection between economy and liberty, or profusion and servitude." Thomas Jefferson, President of the United States of America,1801-1809.

Inflation is taxation without legislation .. Milton Friedman