There is no way one can say something nice about the growing consensus among the 'experts' that QE (Quantitative Easing) is the only solution to the lacklustre growth experienced in many 'Western' economies. The momentum behind this consensus originated in the Anglo-Saxon economies, the US and the UK, and these two countries are so far the leading practitioners of this dubious strategy to solve their real or perceived economic problems. (see Fed mulls new bond approach) The curious aspect is that growth is not even negative in the United States and Britain. But it seems that it is just not large 'enough' to satisfy the never-ending aspirations of the politicians for more growth. For decades now governments tried to satisfy more and more real or perceived needs among their electorate. Spending and Taxation was on a relentless upward trajectory since the mid-1970s and I have always predicted that this trend line at some stage would hit a wall. Well, the wall has been well and truly hit and the community of economists does not have the guts to tell the populace and the politicians the truth: employment growth will not resume unless structural problems (distorted markets) are tackled. To promote the use of 'Helicopter Money' is utterly devoid of imagination and while it is not easy to predict the ultimate consequences of this policy I have the uneasy feeling that an act of this crudeness will not lead to a happy ending.
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