Printing Money is not how to solve the Problem.
It may be that I haven’t really understood but in the end what is the difference between borrowing money to get the country out of debt and printing money to get the country out of debt.
Everyone, with the exception of George Osborne and Danny Alexander, now recognise that the economy is not only failing to recover but is going deeper into recession because of the abject failure of the Liberal Democrats – Conservative coalition Government’s economic policies.
So why is it that they believe that on top of the £325 billion already provided to bail out the banks the printing of another reported £50 -£100 billion will make any difference.
It has come to something when leading international organisations from the IMF, ECB to highly respected organisations like The Bank for International Settlements who act as an international economics watchdog are saying that the UK economy is in real difficulties that do not include the impact of the current European economic crisis which the Coalition seem determined to blame everything on.
The latest information is not only that the Coalition will have to borrow an extra £11 billion this year but that the current and third attempt at solving the problem by quantitative easing, (that’s printing more money to you and me) will not only fail but will weaken incentives for private investment, maintain artificially low-interest rates, increase unemployment, reduce the tax base income to the treasury and further reduce the value of the pensions that the elderly have earned through years of hard work.
There are now very serious concerns over the competence of Conservatives and Liberal Democrats who are in charge of the treasury policy which is causing so much damage to people and families throughout the UK.
In Northampton it is reflected in the increase in unemployment in Northampton which has now gone risen by 1400 in the last 12 months.
The impact of the failing economy and recession has clearly had a major impact on people’s attitude to spending which in turn affects the retail sector more than any other as domestic spending falls. No better example of the impact is that illustrated by Legal and General deciding to stop and carry out a full review of the development and regeneration of the Northampton Grosvenor Centre because it is no longer economically viable.
Lack of political support, nationally and locally to promote growth is having a major impact on the thinking of the private sector when considering when and where to invest, which when combined with the reluctance of banks to pass on the funding they have received through the Governments Quantitative Easing policy will unquestionably impact on Northampton’s regeneration ambitions.
It is time for the Liberal Democrats and Conservatives to stop destroying the economy and start to promote growth through a determined policy of investing in infrastructure, housing and funding small and medium-sized businesses, all of which is very firmly Labour policy.