It would seem that the lunatic-in-chief at the Bank of England, Mervyn King, is hell-bent on following Gordon Brown's wishes, by destroying the pound:
=> Bank of England will buy gilts to boost economy
Mervyn King said the Bank would start buying commercial paper this week, and would most probably move on to full-scale quantitative easing, which involves buying securities but printing money to pay for it, before long.
They have actually been doing this for decades now, but usually via a surreptitious back-door process called open-market operations. Doing it via the front-door will propel us into hyper-inflation.
In a further surprise, Mr King said the Bank was prepared to buy government debt in an effort to bring the economy back on track - something which, so far, neither the Federal Reserve or European Central Bank has embarked on.
What is Mr King going to "buy" this government debt with? Yes, that's right. Paper from out of thin air. If you or I were to "buy" sweets from a shop in such a way, we would be quite rightly arrested as counterfeiters.
Why is counterfeiting wrong in private hands but right in government hands? Answers on a postcard please.
He said: "The projections imply that further easing in monetary policy may well be required. That is likely to include actions aimed at increasing the supply of money in order to stimulate nominal spending," adding that the Bank would consider buying gilts - government bonds - as part of the scheme.
The civil servants at the Bank of England really do need their heads examined. It is impossible to create wealth on a printing press. Real money is supposed to represent real savings of real resources. This paper rubbish represents nothing but the vain ambition of Gordon Brown to become an elected prime minister through the purchase of votes with counterfeit money.
What this cabal of Treasury and Bank of England civil servants have failed to realise, however, is that this "deluge" technique of the post-war stop-go economy, has stopped working. It has failed because the markets have sussed them out. Diluting the value of every pound in the world through counterfeiting is a game which no longer fools anyone. The deluge technique only used to "work" because it kept putting off the fateful day when the bill would eventually have to be paid.
That fateful day has now arrived. It is now standing outside knocking on the door with a sledgehammer. It is time to pay this piper, and there is only one currency that he accepts.
That is the currency of production. We must produce our way out of this. We must make real things and sell them. To cut our production costs we must slash government spending and government regulation. To generate the capital required to fund new factories we must save real money and tighten our belts. We must stop inflating the money supply.
This is the only way out of this which avoids military dictatorship and war. It requires some pain. If we take this path to life, liberty, and property, this pain will be over with relatively quickly. If we continue down this road of printing paper fiat rubbish to chase the same number of scarce economic resources, the pain will increase and endure, eventually turning into the suppression of all liberties and possibly war. And not war in some distant land. But war on our streets, whether of the people against the government, or just everyone against everybody else.
The news - alongside a Bank economic forecast which was far more pessimistic than many City analysts - sent the pound careering downwards against other currencies.
Sterling dropped by well over 3 cents against the dollar to $1.4352, and the euro was up more than a penny against the pound to 89.89p. The pound's fall coincided with sharp falls in gilt yields, indicating that traders had bought more of the government bonds in anticipation of the Bank's unconventional measures.
The traders know. Everyone knows. The Bank of England should be abolished and replaced with nothing. We need a 100% reserve gold standard and free banking and we need it now.
The Bank's Inflation Report predicted the biggest undershoot of the Monetary Policy Committee's 2pc consumer price index target in its history, warning that unless more is done to stimulate the economy, CPI will drop to around 0.5pc later this year.
And Gordon Brown has the gall to say that this is a 'failure of capitalism'. It is nothing of the sort. It is a failure of government-controlled central banking. End of story.
City economists took this as a sign that the Bank will cut rates even further below their current 1pc rate in the coming months - as well as embarking on unconventional measures. It came as a surprise to some economists, who assumed that the MPC had little leeway to cut rates.
I hate to shock the Keynesian economics 'profession', a.k.a. the dunderheads, but the MPC can cut interest rates to anything they want, including large negative figures.
Now that they have cut the 'headline' base rate to virtually zero, which gives us a real sterling interest rate of -15.45%, the MPC merely has to switch to another golf club in the bag, i.e. quantitative easing, to take it down even further.
If you are someone who cares for the United Kingdom and you wish to see it survive as an independent entity, you must do everything within your power to stop this madness. You must start a blog, comment on newspaper articles, talk to friends, subscribe to Mises.org, read the collected works of Ludwig von Mises and Murray Rothbard, write to your MP, or do anything else you can think of, within your power, to stop this. If you are doing so already, then you are a hero.
If not, why not? Are you too busy developing your business? Making contributions to your pension? Earning a living? Playing golf?
When this country is a basket case in ten years' time because we didn't stop this, all of the above will either be irrelevant or impossible. We are looking at Zimbabwean style hyperinflation and our 'rulers' seem compelled to take us there, like rabbits frozen in the headlights, trapped by the instinct of state-worshipping Keynesianism.
This mass-hypnosis madness is either due to pure evil or more likely to the scribbled ideas of their favourite defunct economists, Karl Marx and John Maynard Keynes.
Either way, we must stop them.
It's either that or leave the country. There is that choice. Take one of them before the border controls come down.