Wednesday, 17 March 2010
Damned if they do, damned if they don't
The Bank of England has been painted into a corner by their own actions.
Restart Quantitative Easing (QE) and the Pound will sell down due to fears of dilution of the currency down the line.
Don't restart QE and the Pound will sell down due to fears the economy will go back into a tailspin, perhaps this time going for a crash and burn.
I have put up charts recently, discussing a possible coming significant fall of the Pound over the medium term (most recently here), and I have also forecast resumption of QE (most recently here). It would appear Charlie Bean at the Bank sees things the same way I do.