Will the MPC make honest people of us at last? With inflation well over 3% and rising it is high time they said “No” to more easy money for a government awash with too much debt and wasting far too much money. They should grasp that recovery requires a private sector, export and savings led recovery. That in turn requires a government spending sensibly and gaining us some better value for money. Someone today on the radio said he could not see how QE led to inflation. He should try looking at how the government overpays for all too many things and how it also slaps extra taxes on which drives prices up further.
The MPC’s boom and bust and attempted boom roller coaster ride has done us great harm. They have encouraged or allowed a government to debauch the national accounts and run up horrendous debts. Today they could start to do the right thing, start to get the UK back onto a prudent and well managed path. They also need to have words with the FSA and Bank over why credit is now so lop sided in our economy, and why the UK’s state banks cannot and will not help small business.