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Telling Sky News, he said
that he had real fears that the
The QE measure (printing
money) comes as earlier on in the week, the Chancellor and Prime minister told
the country that they were sticking with their deficit reduction plans – which
the Governor said he believed were keeping the
But he did effectively imply
This huge injection of cash,,
known as Quantitative Easing, means that the amount of cash that has been
pumped into the
The £75 billion is 25% more than what was predicted to be pumped into the economy.
He compared the current crisis to the 1930s, where there simply wasn’t enough cash moving around the economy.
Post 1945 onwards, he said there was more than enough cash being pumped around the economy, like blood pumping around the body. But now, he said, like pre 1945, there simply wasn’t enough money moving around the economy.
A few months ago, there was talk of interest rate rises, but, for a few months on the trot; interest rates have stayed the same at 0.5%.
On Monday, Chancellor George
Osborne told the Tory Party conference in
Problems in the EUROZONE,
Inflation, the cost of goods and services, currently stands at 4.5% but, the Bank of England predict that in the months ahead, it will rise to a whopping 5%.
Earlier today, Thursday, former Tory Chancellor Nigel Lawson, now a Lord, said on the Daily Politics, that the EURO had been “doomed to fail.”
The scale of QE, (printing money), will be kept under review.