RAPID RESPONSES
Safer than some
Allister Heath writes, “the main reason why UK gilt yields hit record lows yesterday is that the Bank of England is monetising the entirety of the government’s borrowing” [Even Germany is feeling the pressure, yesterday]. That would explain why gilts were strong, but sterling has been strong against Asian currencies, suggesting foreign investors think the UK is a safe haven. Or at least safer than anywhere else.
Nick Reid
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Bankrupt ideas
Allowing banks to close their doors has terrible economic consequences. However, so does a policy of endless bailouts. The European Central Bank (ECB) creating even more new money will just make everything worse in the end. That the financial elite are even considering it shows that, while they may not yet be formally financially bankrupt, they are both intellectually and morally bankrupt.
Paul Marks