Liam Halligan rides in

As expected, the magnificent Liam Halligan rode in to the quantitative easing debate on the side of the angels, with an excellent side-swipe at the eco-mentalists thrown in just for fun. What a star! :-)

=> Quantitative easing is not the answer

It is a little bit of a shame, however, that the Torygraph gave much more front page prominence to the half-baked story below, which claims quantitative easing won't work, not because it is an economically illiterate thing to do, but because it fears that banks will once again just keep hold of the new money:

=> Bank of England's £150bn injection may not work, economists warn

Keeping hold of this new counterfeited money is a good thing. It would be even better to burn it, to send it back into the non-savings black hole it crawled from, because in that way we will be able to experience the recession more quickly, to clear out all of the malinvestments of the boom.

The market is doing its damnedest to try to have this necessary recession, as quickly as it can. However, the economically illiterate bozoes in central banking and government planning are tearing their hair out to make this recession last as long as possible, in a desperate bid to kick Gordon Brown over the line at the next election.

They will therefore start trying to force banks to lend to bad risks soon, if the new cash does stay locked up within bank vaults. And then their plans will succeed in either giving us stagflation or hyperinflation, depending on how much they succeed with this anti-market policy.

This is why they are so desperate to force out all of those few bankers still opposed to their plans, including the misguided, Eric Daniels, who once dared to say that this entire mess was all due to the actions of central banking.

=> Daniels and Blank must be turfed out of Lloyds, the only question is when

I wonder if Mr Daniels is now beginning to regret his little chat with Gordon Brown, in which the one-eyed Scottish idiot persuaded Mr Daniels to buy HBOS? I should coco.