Thursday, 5 November 2009

QE raised to £200bn

Today the MPC has decided to chuck another £25bn on the fire into the economy to keep us warm over the winter. They expect to have spent it by the end of February next year. That will take the total "printed" money to two hundred billion pounds. Or £200,000,000,000.00 if you prefer digits. The money is being used to buy gilts (mainly) ie, British government debt.

Strangely, if you add in the most recent bank bail-out costs, two hundred billion is just about the amount the government needs to borrow this year for its running costs.

Dogs and vomit come to mind.

BBC

2 comments:

AgainsTTheWall said...

Its widely reported that this money is used to buy govt debt\gilts (because noone else will). If so then there is no end in sight to this printing of money as govt borrowing is nt going away any time soon.

Expect another dollop of QE in the New Year.

Nationalist said...

In that case, expect hyperinflation.