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The news that the Bank of England is about to launch another round of Quantative Easing. One of the Monetary Policy Committee’s members, Adam Posen has predicted that “ the future is as grim as forecasts based on historical evidence predicted it would be , given the nature of the recession” he dismissed Inflation as “not a threat”. We wonder however if we can really cure the county’s financial problems, simply by printing more money.
There is no easy means of deflating a credit boom, particularly one that has had high levels of public and private borrowing. However we feel that debasing the money supply could actually make matters worse.
In our opinion to promote recovery the government should consider all possible means of providing support for business. The government has stated that the money is “simply not there”, we do not think they are looking hard enough. There are three areas that could be examined that could make immediate real savings and enable money to be fed back into our economy.
They are in our opinion:-
Reducing the current and predicted high levels of overseas aid .
Our armed services have a much higher proportion of highly paid senior officers than any other developed economy – why is this? Surely savings could be made.
Withdraw from the pointless conflict in Afghanistan, any “success” that is being heralded by politicians is illusionary. There are no and never have been any proper strategic objectives for our armed services in this conflict. The term “Lions led by Donkeys” comes to mind.
Do you have an opinion ? why not e-mail us.