The Finance Owl

Banks – Loans – Mortgages – Money

Old Lady Prints Money

Posted by theaccountant August - 7 - 2009 - Friday

Old Lady of Threadneedle StreetThe “Old Lady of Threadneedle Street”, namely the Bank of England, is going ahead with continued quantitative easing policy. This is more frequently referred to as “printing money”.

Despite a few glimpses of green shoots in the UK economy, such as the Nationwide houseprice index recently improving, there are still far too many risks in the British economy.  The conclusion reached yesterday was therefore to continue with the quantitative easing policy, which has given rise to the media’s “printing money” headlines.

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16 Responses to “Old Lady Prints Money”

  1. Jeff Roe says:

    If only all of life’s problems could be solved by all of us just “printing more money”…

    It’s been proved time and time again that simply pouring money into “the system” or pouring more money onto “the problem” does not work. This simply rewards poor leadership. It also highlights the inability of elected office-holders to be accountable, fiscally responsible, and NOT beholden to special interest groups.

    In other words – printing money will result in delaying the tough decisions that should have been made by responsible adults, with taxpayers footing the bill for the delaying important decisions by lazy, ineffective, and incompetent politicians.

    Good luck with all of that.

  2. theaccountant says:

    You make some really interesting points.

    There seems to have been a huge amount of confusion caused by the apparent lack of clear division of responsibilities between the Old Lady and the FSA. I am still surprised that the FSA on the face of it seemed to focus on media led immaterial issues instead of the massive systemic funding issues that have plagued the financial structure, yet I suppose hindsight is easy.

    Great to hear your thoughts, you certainly got me thinking.