So more quantitative easing but it is not the same as...

The Bank of England does not think we are out of the woods yet and it is doing some more quantitative easing. It is technically not the same as printing money but it could still debase the currency (Zimbabwe anybody!!). It is going to be painful when the central bank does attempt to raise interest rates. The Bank of England would not want to do this just before the coming general election. Governor Mervyn King must be hoping that his boss Gordon Brown goes for a poll in October. Waiting until May 2010 when the unemployment figures could be pretty bad does not seem the sensible option.

One of my favourite publicatons is Money Marketing especially the articles by Brian Tora. He considers that Ireland is teetering on the brink of bankruptcy and 7,000 teachers will be sacked combined with the closure of many rural schools. Is this was to happen in the UK, the equivalent of 250,000 teachers would go. It is not going to take place but it is nice dreaming about it. In Great Britain we are churning out quite a few kids, who have not benefited from the education process at all, the so-called neets.

Depression, slump, recession, inflation?

It is sometimes better not to read the newspapers because they are so depressing. One article, which cheered me up was one by the excellent Brian Tora in a recent moneymarketing.co.uk. The article reviewed the financial crisis but concluded that it may be a once in a lifetime crisis, but that we would get through it. Tora says that overborrowing is at the root of the crisis.
In London, the Government is frantically trying to work out what the Germans said about their deposit guarantee while hinting that it might take equity stakes in banks as part of a recapitalisation effort. There has been criticism that the Gordon Brown government has reacted in a piecemeal fashion to the problems of the banks. However, Brown has probably tried hard to get an European Union solution but will have to take local measures on deposit guarantees following in line to the Irish, the Germans, the Scandinavians etc.
Meanwhile, I have never been to Coventry but it has a range of local accountants to help your needs. they include the firm Fox Evans (www.foxevans.co.uk). The firm offers services to a wide range of businesses and individuals.