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

John McDonnell does a funny:

“I’m told there are a group of KGB colonels who are suing The Sun for associating themselves with us.”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.
Camilla Tominey on Labour’s Smears Hypocrisy Camilla Tominey on Labour’s Smears Hypocrisy
Dugher vs Skwawkbox Dugher vs Skwawkbox
Remembering the STB Remembering the STB
Even Remainers Think BBC Is Anti-Brexit Even Remainers Think BBC Is Anti-Brexit
Millions of Students Affected by Lecturers Strike Millions of Students Affected by Lecturers Strike
Corbyn Considering Backing Customs Union Corbyn Considering Backing Customs Union
CIA Files Reveal US Spies Kept Tabs on Corbyn CIA Files Reveal US Spies Kept Tabs on Corbyn
Cabinet Sub-Committee Committed to Divergence and Taking Back Control of Laws Cabinet Sub-Committee Committed to Divergence and Taking Back Control of Laws
Stasi Files: Corbyn’s Peace Group Infiltrated by Spies Stasi Files: Corbyn’s Peace Group Infiltrated by Spies
Boris on Corbyn’s “B*llocks” Boris on Corbyn’s “B*llocks”
Read: Stasi File on Labour Party Read: Stasi File on Labour Party
LISTEN: Labour MPs Knowingly Meet Foreign Spies Every Day LISTEN: Labour MPs Knowingly Meet Foreign Spies Every Day
BBC Website Finally Reports Corbyn Spy Story… And Attacks “Press Barons” BBC Website Finally Reports Corbyn Spy Story… And Attacks “Press Barons”
Tory ERG MPs Remind May of Her Commitment to Take Back Control of Laws and Trade Tory ERG MPs Remind May of Her Commitment to Take Back Control of Laws and Trade
Aaronovitch Talking S*it Aaronovitch Talking S*it
Live In Truth: Corbyn vs Havel Live In Truth: Corbyn vs Havel
Watson Now Opposes Airing Lurid Historic Claims Against MPs Watson Now Opposes Airing Lurid Historic Claims Against MPs
Green: I Wasn’t Inappropriate to Kate Maltby Green: I Wasn’t Inappropriate to Kate Maltby
Geoff Norcott Drives Corbynistas Crazy Geoff Norcott Drives Corbynistas Crazy
BuzzFeed Runners and Riders BuzzFeed Runners and Riders