According to the BBC, the Bank of England has decided to 'inject a further 75 billion into the economy'. Who knew it was that easy? By the BBC's logic, it would surely make us the wealthiest nation on Earth.
Mervyn King's remarks capped a week in which the construction sector slumped back into stagnation; Tesco reported the worst UK sales for 20 years, and the most recent quarter's economic growth figures were revised downwards to an anaemic 0.1 per cent.
Forty per cent of Britain's exports go to the Euro zone. For all the Tory Euro sceptic bluster, what happens to those 17 countries sharing the single currency has a direct and potentially catastrophic consequence for the UK.
The monetary policy committee has various tricks up their sleeves, the most obvious being to cut interest rates. But since the credit crunch in 2008, the bank has slashed rates six times from 5 per cent to a miniscule half a per cent. With that firepower all but exhausted, The Bank of England pulled the trigger on a much more controversial policy, known as 'quantitative easing'. For the rest of us it's simply called printing money.
Forty per cent of Britain's exports go to the Euro zone. For all the Tory Euro sceptic bluster, what happens to those 17 countries sharing the single currency has a direct and potentially catastrophic consequence for the UK.
The Chancellor acknowledged in his conference speech: "The resolution of the euro zone debt crisis is the single biggest boost to confidence that could happen to the British economy this autumn." Another round of QE is welcome. But it is no solution.
Mervyn King's remarks capped a week in which the construction sector slumped back into stagnation; Tesco reported the worst UK sales for 20 years, and the most recent quarter's economic growth figures were revised downwards to an anaemic 0.1 per cent.
Forty per cent of Britain's exports go to the Euro zone. For all the Tory Euro sceptic bluster, what happens to those 17 countries sharing the single currency has a direct and potentially catastrophic consequence for the UK.
The monetary policy committee has various tricks up their sleeves, the most obvious being to cut interest rates. But since the credit crunch in 2008, the bank has slashed rates six times from 5 per cent to a miniscule half a per cent. With that firepower all but exhausted, The Bank of England pulled the trigger on a much more controversial policy, known as 'quantitative easing'. For the rest of us it's simply called printing money.
Forty per cent of Britain's exports go to the Euro zone. For all the Tory Euro sceptic bluster, what happens to those 17 countries sharing the single currency has a direct and potentially catastrophic consequence for the UK.
The Chancellor acknowledged in his conference speech: "The resolution of the euro zone debt crisis is the single biggest boost to confidence that could happen to the British economy this autumn." Another round of QE is welcome. But it is no solution.
About the Author:
Michael Fielding writes articles on behalf of CBC International. CBC provide debt collection and debt recovery services to the rest of the UK and worldwide.
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