Banks will fail, more housing markets will collapse and panicked governments will attempt to raise taxes from the survivors as they borrow even more in a vain effort to create yet more economic stimuli.
Today, in the UK, after Project Merlin (“a great success!”), the National Loan Guarantee Scheme (“a great success!”), we have the launch of the Funding for Lending scheme.
This latest scheme, is potentially worth £80 billion but to the trained eye, looks suspiciously like rebranded Quantitative Easing.
This scheme , like most “schemes” promises no economic outputs or goals and the wording is very interesting (and flabby):
“Funding for Lending aims to encourage banks to lend to both businesses and households”.
It “aims to encourage”.
Give it a rest, Gideon.