Quantitative easing: The Bank of England will “create money out of thin air” and inject it into the financial system, this will “increase the money supply” (= “Inflation”). Inflation is a hidden tax.
“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning 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
The government and the Bank of England are robbing the people of their wealth.
Economic jitters: Alistair Darling has set out the details of a £50billion scheme to head off a slump
The Bank of England was put on standby to print more money last night amid growing signs of Labour jitters about the Prime Minister’s strategy for escaping a political wipeout.
Alistair Darling set out the details of a radical £50billion 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.
The Chancellor wrote to Bank Governor Mervyn King to confirm that the £50billion fund will be used to effectively purchase companies’ debts and even give them extra cash.
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Tags: Bank of England, Banking, Economy, Government, Politics, Treasury, U.K.