Printing Money

So the Bank of England has decided to go for a further, but cautious, £25bn of quantitative easing, to help the struggling economy. This was probably the right decision if you embark on this printing money road in the first place. The worry is that the cash is not filtering into the real economy but is being used by banks and other financial companies to trade. New instruments are evolving it seems, involving packaged carbon futures, bundled up like the sub prime mortgage toxic rubbish which has cost us all so dear.

This reinforces my suspicion that you cannot regulate all this. The only route to go henceforth, is to separate useful banking from financial gambling, cut the latter off from taxpayers’ cash or prospect of rescue and let the unlucky ones go bust, however big they are. The alternatives will be to borrow our country in bankruptcy or print our currency into oblivion.