Mervyn King deploys new tool - Moral hazard!

The corridors of mafia power in England are beginning to reverberate with the idea of extremely low central bank interest rates, and the concomitant high inflation that this will automatically generate. According to the Torygraph, Bank of England insiders are considering slashing their rates to 2% or lower.

Whether this will mean Mervyn "Moral Hazard" King will be hoist by his own petard, we will see, but it seems the dubious practices of Helicopter Bernanke and the Japanese play book are all the rage in Threadneedle Street.

Not that any of it will do any good, of course, as they discovered in Japan when they tried zero per cent interest rates a few years ago. Because nobody suggesting any of this, including Edmund Conway or Roger Bootle of the Torygraph, have any idea of real economics. For that, they ought to read Frank Shostak, but hey ho, what does real economics have to do with the fairy tale world of the Keynesians?

Even the Golgafrinchams, of the Hitch Hikers Guide to the Galaxy, had better ideas than this. Yes, it was rather silly of them to adopt the leaf as legal tender, two million years ago, but burning all of the world's forests to increase the value of each individual remaining leaf did at least have a certain "commodity money" logic to it.

Rolling forwards to today's Earth, the easing of credit to solve the problem of too much easy credit makes less sense than refusing to invent the wheel because you can't decide what colour it should be.

But then who are the foolish ones? The panicking lizards in the mafia central banks, mafia government treasuries, and mafia-licensed newspaper business sections, or the dumbed down huddled masses in taxpayer land for allowing these panicking lizards to be their rulers? You decide.