The world now seems a scarier place with Donald Trump as president of the United States of America. I have to be careful what I say about him, he does have a habit of suing people; not that I would ever libel anyone. Some of the things he says does remind me of the nationalist ideas that Hitler had. There are even similarities between the backgrounds of both men. Trump is a lot smarter than Hitler was and although he might be similarly misguided and even psychopathic, he is not stupid.
George Osborne made some interesting comments about quantitative easing and loose monetary policy this week that showed some new thinking:
George Osborne said: “We need to offset the very necessary loose monetary policy and the distributional consequences that it is having. Essentially it makes the rich richer and makes life difficult for ordinary savers.”
“There’s a role for government policy not in stopping that monetary policy which keeps the economy strong but in mitigating its impact. I think all of us who believe in free markets need to work harder to find an answer to the anger that people clearly feel out there.”
This followed on from comments made by the Bank of England’s deputy governor Minouche Shafik that suggested quantitative easing is here to stay. New thinking at the Bank of England seems to favour QE as a permanent tool of monetary policy.