The Bank of England injected a further £75 billion into the economy today in a bid to jump-start the UK’s flagging recovery. Its Monetary Policy Committee (MPC) voted to boost its quantitative easing (QE) programme – effectively printing more cash – from £200 billion to £275 billion despite the risks it poses to the country’s inflation rate.
So we are printing more money to give to banks to buy there bad assets. What will they do with the money?
Well have a bonus bonanza of course.
How does all this money printing affect us?
Well for a start the value of the pound will drop; Inflation will increase; savings will be worth less and your debt will be reduced but only if you have an increased income.
The dropping value of the pound will make all imports cost more especially oil. It is supposed to make our exports cheaper but as that has not helped in the 60 odd years since WW2 when the pound was worth around $5 another small change will not make a lot of difference in my opinion.
Increases in inflation, the one thing the Bank of England is suppose to control, will cost us all as it will mean everything goes up in price. Only those who get there income from selling things or investments will gain much from this.
Those few of us with a little in the bank will see it worth less and less while those who ran up debt will see its real value decrease. So penalising those who were sensible and rewarding those who weren’t. Think of all those people who worked hard all there working life and now see there savings, slowly built up to help in the retirement, being stolen away.
So all in all the government and the Bank of England is now robbing the people who didn’t waste money to reward the Bankers with more to give themselves. Nice to see the old boys looking after each other while the rest of us have reduced incomes and more expense.