The James Kilgour BlogA Life Blog.

So the government is going to pump 75bn in new cash into the economy, in a bid to stop the recession. They call this “quantitive easing”. However, to me, this seems like it will just ruin our economy further.

The British Sterling was one of the world’s strongest currencies. Now, with this development, that will surely fall, and if we are not careful, we could quite easily enter hyper-inflation like Zimbabwe.

In addition, the Bank of England has now lowered interest rates to history’s lowest: 0.5%. This is the sixth time rates have been cut since October. If it hasn’t worked before, why are they still trying?

In my opinion, printing more money is not much of a solution. We should try and weather the recession. If this new money printing idea does cause the economy to go caput, then Gordon Brown will be shot for it.

JK