måndag 21 juni 2010

The Economist

Bra sagt av The Economist/Buttonwood:

The Bank of England was set up in 1694. For the next 300 years which included world wars, the Great Depression, a century or so of alternating deflation and inflation between 1815 and 1914, and the bank never previously felt the need to reduce rates below 2%. And this is combined with a fiscal deficit which, relative to GDP, is unknown outside world wars; one in four of the pounds spent by the British government is borrowed from the markets. Even with all that, the Bank of England has been obliged to add QE on top.

If zero rates and huge deficits were the answer to mankind’s problems, we would have discovered this long ago. After all, governments would be delighted to borrow as much as they can for as little as possible.

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