Later today, all the signs are that the MPC will release a statement saying that they have authorised the Bank of England to start buying government and corporate securities on its behalf – paid for with money it has created for itself.
And so the new money will be injected far from the ordinary person, and a new cycle of widening economic inequality will begin. And yet it appears, according to “Stephanomics”, that:
In his most recent press conference, the Bank’s Governor, Mervyn King, seemed pretty confident that QE could work. But even he would admit he has no idea how long it will take – or how much money he will have to print to get there.
Where does the Bank come out in all this? The phrase I have heard used by Bank officials more than once is “suck it and see”. Given the nature of the stakes, you might find that a bit disturbing. I call it an honest assessment of where we are.
We should be able to expect better.