LETTER: Bank of England U-turn

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ThE Bank of England’s monetary policy committee has done a 180 degree turn in agreeing to spend £75 billion of tax-payers’ money, called quantitative easing or QE2.

Could it be this vast sum of money is being used to keep the Tory Government backers, from the financial sector, afloat when the Euro zone finally allows Greece (and others!) to default on its unpayable debts? This will result in banks everywhere nursing huge losses on their loans to Greece.

QE2 is not going to help the two and a half million unemployed nor the growing number of young people who cannot find a job. George Osborne sits back and waits for the stagnant business sector to grow when household spending is being cut to the bone. Increased inflation is going to hit anyone on a fixed income for years to come.

Incidentally, £75 billion is about twice Britain’s annual defence budget, or the same as the entire market value of BP.

It would be good to know what our Tory Member of Parliament’s views are on the issue and its likely effect on Pendle.

JOHN POPE

Ribblesdale Place, Barrowford