Thursday, 5 November 2009
QE: So where did the £150bn go?
Of the extra £175bn the Bank of England created through its Quantatitive Easing (QE) programme, around £173bn has been used to buy UK gilts - i.e. to buy Government debt to keep it afloat - as highlighted in my previous blog, 'Printing Money, Inflation and Spin'.
Today the Bank of England also announced it will be pumping in another £25bn too (QEII) - so it looks like Gordon is looking for the bailout to continue to keep the UK ship afloat until at least the general election, so he can try to avoid any more blame falling upon himself (e.g. for the impending tax hikes, and the slashing of services & public sector jobs), and so he can pass the problem onto someone else (rather than deal with it).
Trust, Honor, Responsibility, Respect? ... You decide!