Monday, 22 July 2013

John Kay FT Comment

It is with a mix of emotion and praise that I post here this video depicting  Dr. John Kay's comment about Quantitative Easing and our current Economic predicament. Since I was living in the UK, I tried always to read and check Dr. Kay' work and articles. He is a respected and listened economist. And quite so that it couldn't disappoint with his take on the paradoxes about the current economic policies in place to deal with the consequences of one of the major Financial & Economic downturns of our recent History. Interesting to think and reflect about the bad balance achieved so far between Fiscal Stimulus, Quantitative Easing, Monetary Policy and the urgent need for Investment and Growth. The results speak for themselves, and the savvy but gentle warning of John Kay just add value to the judgement of all.

Really impressive to me is the recognition of the paradox that, despite our economies are living with real negative interest rates (which is a form of Government subsidy), the so called needed Investment on Infrastructures and sectors of the Economy vital and Strategic to long term Growth aren't taking off. What it all seems instead is that the QE money is being wasted or hoarded by the Financial System. It begs the question: Where do we go from here?!

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