Govt to print £50bn to help business

baby_boomer

This is Money

And so it starts.

New Labour takes the Obama stimulus package as the moment to slip through measures that will unleash potentially inflationary pressures while representing their last throw of the political dice before the next election.

...."Alistair Darling set out the details of a radical £50bn scheme to head off a slump by injecting hard cash into the stricken economy. The move represents a major step towards so-called 'quantitative easing', whereby the Government creates more money to ease the shortage of credit in the economy.

But it also takes the Bank a step closer to losing the independence it won from Mr Brown more than a decade ago, as ministers prepare to seize control of monetary policy."

zedyy

quantative easing is comparable to a farmer diluting his milk and selling it to you for the same price, in turn giving you less nutrition. God forbid a citizen begin the process of quantative easing i.e. printing off bank notes -- then its called counterfeiting, but if the government does it, its perfectly legal.

The Bush regime had a particular love for hitting the printing presses and look where it got them.

Cannon_Fodder

But no-one is talking about printing money, he said, all of three weeks ago...must be untrue.