Great…only what is backing this £50 bn “stimulus”?? Nothing of course. Moreover, by pouring in £50 bn of worthless fiat paper money into the economy, the money supply is yet further inflated and the average person’s purchasing power is further diminished.
“Worsening economic prospects could force the hand of the Bank’s Monetary Policy Committee, which last month voted to pause its purchase of government bonds after pumping £325bn into the market through quantitative easing.
Since then however, the data have painted a picture of a worsening, not improving outlook for the British economy, and there is no sign of a solution to the eurozone crisis.
The Office for National Statistics said the recession that began in the first quarter was deeper than it initially thought, with the economy shrinking by 0.3pc in the first three months of the year and not 0.2pc as it previously estimated”.
Source: the Telegraph.