LETTER: Grave dis-service

I AM grateful to David Foat and David Penney (Letters, January 4th) for providing further clarification and discussion of the subject of quantitative easing.

I have to say that any little “expertise” I possess is of the phonetic variety: whereby an “expert” consists of “X” which is an unknown factor; and a “spurt” is a drip under pressure.

The twin policies of zero-interest rates and quantitative easing are features of a return to an era of financial repression in which savers are defrauded and the citizenry at large is impoverished.

I have heard it said that we are now in the era of “QE to infinity”.

The way in which individuals respond to this is paramount.

Policy-makers are using the age-old method of “boiling the frog” (heating the water slowly so that the frog does not detect that it is being boiled alive).

The Coalition Government and Bank of England must be delighted with the evidence to date that shows this policy is working rather well.

Perhaps you will allow me to retain the frog metaphor by observing that a great many frogs are unhappy and some are grumbling, in fact some frogs have banded together to form a pressure group called “Save Our Savers”; but overall there have been no reports in the media that frogs have been jumping out of the pot to safety in anything like significant numbers.

The current financial and economic crisis is tragic on many levels, of which the total, absolute and abject failure of the mainstream media to give prominence to those commentators and economists that saw this crisis coming (and who gave due warning accordingly) amounts to a grave dis-service to the nation.

Sadly, the media acted as an echo-chamber for the gargantuan insanity of a credit boom and the flawed orthodoxy of neo-classical economics, yet they show no sign of comprehending their role in contributing to the current crisis or offering an apology.

If the media had performed their duty then a great many people could have begun taking steps in the good times to prepare for the bad times, and in doing so they and the country would now be in far better shape.


Castle Road, Colne