Gavin Maclure's Musings

My take on politics locally, nationally and internationally

Credit Easing

1 Comment

The word ‘Easing’ is the operative word in my headline post. It looks as if it is related to Quantitative ‘Easing’. That’s because it is. Both are about creating money out of nothing. IOUs, printing money, bonds, whatever you want to call it. It will only end up (and has already) in inflation – but then, may be inflation is the only mechanism the Government has got to reduce the national debt.

This would certainly do the trick for them except it would push us consumers further into the economic gutter. Employers are certainly not going to increase your wages to keep up with inflation and food and fuel prices aren’t going to come down any time soon.

Whichever way you look at it, with the weak decisions being made by politicians in the Eurozone and by George Osborne back in the UK we are in a full scale Japan-style 1990s recession. Unofficially, we are not in recession as the economy has its mouth above water, just! This is because growth is at 0.2% or thereabout. But for all intents and purposes we are in a recession.

I can’t help thinking if we had some real Tories in the Conservative Party high command and we were relieved of the Yellow Peril things might be slightly different.

Guido Fawkes sums it up well:

When the government starts lending money to companies that no one else wants to lend to, you can be sure of one thing, they are going to lose a lot of taxpayers’ money. Billions.

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Author: gavinmaclure

IT professional; political blogger, former Conservative councillor

One thought on “Credit Easing

  1. This may be one policy where people from all parts of the political spectrum are in agreement: it is economic folly.It really puzzles me why Osborne seems to delight in flying in the face of economic experience and advice. What does he hope to gain?

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