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Bank of England man wants to print more money
Business Digest: Adam Posen wants to prevent low growth and unemployment
Adam Posen, a member of the Bank of England's Monetary Policy Committee (MPC), has called for more money to be pumped into the economy to prevent a decade of low growth and high unemployment.
Posen's comments, which he stressed were his own view and not the Bank's, come despite the fact the economy grew at 1.2 per cent for the three months to June, its fastest pace in nine years.
He said: "The risks that I believe we face now are the far more serious ones of sustained low growth turning into a self-fulfilling prophecy, and/or inducing a political reaction that could undermine our long-run stability and prosperity".
It is the first time an MPC member has publicly called for quantitative easing and raises the possibility of a three-way split at next month's interest rate vote.
Read a full report at the Daily Telegraph
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"first time an MPC member has publicly called for quantitative easing" - a very telling observation. But let us note that they have acquiesced in it silently for as long as we can remember. Inflation is CAUSED by QE. Responsible economists call it "printing money and stoking inflation". Of course it is nearly all done electronically now, they just add nine noughts to an account and create a billion in a flash. And then the government get a "free lunch" to buy what they like...and the public get rising prices a year later as the money trickles down into the private sphere. The process is all but invisible, but not all but criminal - it is entirely criminal. If anyone else did it, they would do hard time for robbing the government!