Bank of England Still Artificially Lowballing Interest Rates

This morning the Bank of England’s Monetary Policy Committee will meet and in all likelihood order another £50 billion of Quantitative Easing, or money printing. This will again be used to buy government bonds, artifically holding down long term interest rates. This deliberate policy is approved by George Osborne and allows the Treasury to finance government over-spending via sales of government gilts to the Bank of England. It robs the old of the value of their savings and the young who will have to finance the future taxation which the government has effectively deferred.

This monetary experiment will have totalled some £375 billion, it is unprecedented in scale and there is no clear exit strategy to unwind QE. The Bank of England’s balance sheet is now loaded up with gilts that were not sold in the open market, holding down interest rates and allowing George Osborne to point to the bond market and claim the UK is a safe haven. In reality we have an artificial bubble in the bond markets that could pop disastrously if confidence was lost. If it goes wrong, we will look back on QE as the biggest rate-fixing scandal of all time.




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Heidi Alexander sums up Labour’s approach to aspiration:

“Babies grow up to become taxpayers.”

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

Corbyn’s Celeb Mate: Stab Tory MPs for a Laugh Corbyn’s Celeb Mate: Stab Tory MPs for a Laugh
Phil Shiner Banged to Rights Phil Shiner Banged to Rights
Core Labour Vote There For UKIP’s Taking Core Labour Vote There For UKIP’s Taking
Lib-Green Pact Plot Leaked Lib-Green Pact Plot Leaked
Tories Braced for Charges Over South Thanet Tories Braced for Charges Over South Thanet
Max Fine for Law Breaking Lib Dems Max Fine for Law Breaking Lib Dems
TROT SUPER-FACTION ORGANISING MOMENTUM TAKEOVER TROT SUPER-FACTION ORGANISING MOMENTUM TAKEOVER
Santa Paws: Phil Hammond’s Christmas Card Santa Paws: Phil Hammond’s Christmas Card
Government Values Guardian Readers Most Highly Government Values Guardian Readers Most Highly
Treasury Implements Amy Lame Tax Treasury Implements Amy Lame Tax
Fidel’s Final Push Fidel’s Final Push
Newmark Back Helping Women2Win Newmark Back Helping Women2Win
BoJo Ho Ho! Christmas Returns to FCO BoJo Ho Ho! Christmas Returns to FCO
Naz Shah Attends Extremist-Linked Event Naz Shah Attends Extremist-Linked Event
HEIDI ALLEN IN MAYORAL ROW HEIDI ALLEN IN MAYORAL ROW
Renzi Loses Referendum – Resigns Renzi Loses Referendum – Resigns
WATCH: Clegg Gets Brillo’d WATCH: Clegg Gets Brillo’d
Brexit Book War – Latest Brexit Book War – Latest
Public Heath England Gets Booze Sums Wrong Public Heath England Gets Booze Sums Wrong