The 'Great Inflation' begins

So, the button is pressed.

The legalized counterfeiters at the Bank of England have lowered interest rates as much as they can, to virtually zero, and they are about to embark on that most inflationary measure of all; the direct purchase of government bonds. (I use the word 'purchase' advisedly, of course, in the same sense that a private basement counterfeiter would 'purchase' goods with bits of coloured paper extracted directly from a two-sided colour photocopier.)

With the £150 billion pounds Mervyn King is about to create out of thin air, expect an assumed fractional reserve ratio of 10% to turn that into £1.5 trillion pounds over the next few months, or approximately £25,000 pounds for every man, woman, and child, in the United Kingdom. That is a whole bag of kebabs. And we may never recover from the Great Inflation which it ignites.

And do we think that this will be the last bout of 'quantitative easing' that these bozoes indulge in? No, my precious, I don't think that we do.

For more on what we are about to experience, please read Chapter XI of 'The Mystery of Banking', by Murray Rothbard (p.160):

The Mystery of Banking, by Murray Rothbard

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What didn't work in Japan, is now not going to work over here too:

Insanity: doing the same thing over and over again and expecting different results.

Albert Einstein

As Captain Blackadder said to his troops before they went over the top of his trench and ran pluckily into a wall of German machine gun fire; 'Good luck everyone'.