Monday, 8 December 2008

Just before bed ...

One or two last wee things, glimpsed over at Guido, before I hit the waiting hay.

Number one, the repeal of the 1844 Banking Bill:
"Banking Bill
Part 7 — Miscellaneous

Weekly return
Section 6 of the Bank Charter Act 1844 (Bank to produce weekly account) shall cease to have effect."
Now, wasn't that 164 year-old Act kind of useful, in the way that it, you know, ensured that the government had to tell us how much money they were printing?

The government is adopting, or preparing the groundwork to adopt, a policy of "quantative easing" - the last resort solution to bad economic times such as these, and as such, tends to be a very foolish, desperate measure. Basically, if you exhaust all other monetary options - as will no doubt have happened once the Bank of England's interest rates have finally hit zero - you just ... print the money. Sound wise, or to use Gordon Brown's coined word, prudent? Think the Weimar Republic. Think Mugabe.

We're being set up for inflation, and lots of it.

Finally, this nice picture:

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