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Bank is given the green light to print more money
19 Jan 2009The Bank of England was today given a licence to print more money to bail out the failing economy.
In a drastic new twist to the financial crisis, the Bank's monetary policy committee has been told it can increase the money supply if it believes more cash is needed to kick-start the financial sector.
The Chancellor today gave the go-ahead to a £50 billion asset purchase mechanism in which the banks can trade currently illiquid assets for cash so they can re-enter the credit and lending markets.
But the Treasury said even more could be provided by the MPC ordering the printing of more money: "The programme also provides a framework for the MPC to use asset purchases for monetary policy purposes should the MPC conclude that this would be an additional tool for meeting the inflation target."
Reader views (6)
Printing money should be the last resort after all the other (however painful) actions have been taken. We have not made a single penny in public sector spending cuts to fund tax cuts, we still firehose money into public sector non-jobs, BBC "celebrities", illegal wars in Iraq, bonuses for nationalised bank employees - this list goes on.... Lets start by an immediate halving of non-essential public expenditure - stuff the arts, the BBC, unions and political correctness, There's plenty of time for that later - WE JUST NEED STABILITY NOW!
- Zady, London, 21/01/2009 23:11
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Osbourne, in the Mail today, defined national bankruptcy as the point at which the government starts to print money.
Where, exactly, is Gordon Brown leading this nation? Does anyone, including him, have the foggiest?
The French have a proverb;
"When a blind man bears the standard, pity those who follow."
- An Ex-Apprentice, peterborough UK, 19/01/2009 18:22
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"Owners of capital will stimulate the working class to buy more and more of
expensive goods, houses and technology, pushing them to take more and more
expensive credits, until their debt becomes unbearable. The unpaid debt will
lead to bankruptcy of banks, which will have to be nationalised, and the State
will have to take the road which will eventually lead to communism" Karl Marx, Das Kapital, 1867
So that is what Gordon is trying to do, ruin our country, and delivery communisim. We dare to criticise the Zimbabwe government – this is exactly where we are headed.
My husband gives me housekeeping! – What happens if I overspend? No money – no food – no clothes – no holidays – and no benefits.
This Government is insane.
The banks are insolvent –SACK all the Managers, who got us into this mess – NO business NO bonus.
How about a stint in Her Majesty’s prison to help ‘sharpen’ their awareness of moral values, and stop the greed and avarice that has gone on.
One angry housewife!
- Pnd, Wokingham, 19/01/2009 18:18
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This is a big gamble! i hope it doesnt back fire.
- Abba, Kaduna - Nigeria, 19/01/2009 18:15
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William, since when did you believe anything Brown says? It's been obvious from the start of this crisis that, having screwed up and exercised all options, the Govt. would order the printing of money and hence start the engine of hyper-inflation. The man can do a lot more damage yet.
- Jon Kent, Hertford. UK, 19/01/2009 17:50
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But Mr Brown specifically said on the News last week that there would be no printing of money? What's changed so suddenly?
- William Grierson, Kimpton-UK, 19/01/2009 17:17
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