Stimulus-pocus

The recession is deeper than we thought, the central bankers say.

No shit? Gee, these guys are at the cutting edge. I wonder how they found out – perhaps they saw the unemployment lines…

Their solution is simple – keep interest rates at a record low and erm, print more money.

How much, you ask?

Oh, say another fifty billion pounds…

Quantitative easing. It sounds clever, but that doesn’t butter parsnips.

Why do I get the feeling that the only thing QE is stimulating is the profits of the banks?

Okay, so the bailed-out banks have reported losses – but things are going great for the remaining banks (their investment arms at least!)

As for the real-world stimulus mesures, like the car scrapage scheme and the reduction of value-added tax, these will not be extended.

Why do I get the feeling quantitative easing will be given another go?

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