Video: Mervyn King - £75Billion QE2 - 6/10/2011 part of Mervyn King
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Mervyn King - £75Billion QE2 - 6/10/2011

Stephanie Flanders BBC economics editor interviews Mervyn King the governer of the Bank of England. (The UK's Ben Bernanke). Quantitative Easing or QE is money creation either by printing notes or simply digits entered on the recipients computer. QE is interest bearing debt payable by the public to the Bank of England. Money creation need not be interest bearing and should not be, as the money belongs to the public in the first place. QE1 was £200Billion. QE2 is £75Billion, that is the equivalent of over £1000 for every man, woman and child in the UK. The QE money is in addition to the £919Billion that the US Federal reserve lent the Bank of England shortly after the beginning of the credit crisis, though it never was a liquidity problem, but a bank insolvency issue. The UKs ongoing monthly budget deficit is paid for with created money, it is a constant source of inflation for as long as the deficit remains ie Mervyn's predictions of lowering inflation are delusional at best. Yesterday reported inflation rose to 5.2%. On the contrary to what Mervyn suggests in the interview wealth is a productive capacity, not asset bubbles fueled by the inflationary effects of money creation. Giving the banks more money to continue the same global free market process that has destroyed our manufacturing base is insanity. Mervyn King is supporting the making of the largest global collapse in human history. He is confidently acting on a delusion that in a few years time together with the <b>...</b>
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