Just a fortnight after saying QE could be ended because the recession was over, the man at the top of the Bank of England has changed his mind.
“If there’s one thing the markets hate” said Andrew Marr last Sunday while reviewing the papers. “It’s uncertainty”. The UK’s catchphrase at the moment seems to be ‘give the people what they hate’.
We’ve had Darling v Brown, then Clarke v Cameron, then Brown v King, the King Up v King Down. All we need now is for Eric Daniels to have a row with Stephen Hester,and we’ll have the full set.
I would only refer you back to this extract from our Feb 4th posting:
‘Commenting this afternoon, Chairman of Full Circle Wealth Management John Robson told The Slog:
“From now on the trapped position of the UK’s economic and fiscal managers is going to be thrown into sharp focus. The full withdrawal of QE must, in our view, show that the private sector’s response will be woefully inadequate.”‘
So it has proved.
There is no serious private sector to revive. Everyone in a position of senior responsibility should stop this ridiculous pretence now,and start cutting to the bone. Otherwise we’ll be in German 1920s hyperinflation mode before you can say Adolf Hitler.