As more quantitative easing has led to purchasing more assets that could look like they are supporting the economy by backing securities that are used as a way to support this countries treasury gilts. Then what happens to Inflation when we have more money to borrow as we had to mint it to enable purchase of worthless assets given a value to make them balance the books.
The answer should be simple but is not as we are now finding and the best way to explain this phenomena is to say lend money that we do not have, buy assets not worth the value to enable money to be provided into the marketplace to get people to borrow and then ease the markets to enable people to buy more.
The result is higher inflation and higher inflation means that quantitative easing is not working and this article says just that and l hope that we learn by this error and that borrowing yourselves out of debt it does not work and never will. What is left after this is a debt to the people of trillions and no way to repay as our way out of the crisis is to create jobs that manufacture goods ourselves and sell them to countries abroad, that really need them.
If we need a market to serve we need to look no further than the third world or developing countries that need our help and guidance to get them up to a certain standard of living, but " Caveat Empire" l know mis-spelt that but what l mean is that Latin understanding of " Buyer Beware " and l mean the way we sell our products to people new to our Western World of Trade by putting people first and profits last. Maybe one day we will truly understand that are customers need to be served and treated with understanding of their need not our own greedy wants.
Ian Draper -