“Quantitative Easing” (printing money)

On the 5th March, with its rate-cutting ammunition all but exhausted, the Bank of England pressed the button on a much more drastic policy, “quantitative easing” (printing money) in an effort to kick-start the economy.

In Japan the government sent money created in this way to citizens, who are likely to spend it and stimulate the economy directly. In UK the government buys the worthless assets of bankrupt financial institutions. Since UK plc is not in its entirety worth even a fraction of the debts that were incurred during the decade of asset bingeing this is a policy of despair that cannot work and will do nothing to help us avoid the looming Depression.

The Green Party has had a policy of Citizens' Income for about 30 years. As in Japan, this would be an ideal way to put more money into the economy, especially since the poorest would benefit most and are the most likely to spend rather than saving.

Money created by the public should be invested for the public good. What we are continuing to witness in our economy this week, on the other hand, is a massive transfer of wealth to those who least deserve it.