Signature Coins & Bullion

The recent announcement of another round of Quantative Easing (also known as Printing Money) to the tune of £75,000 Million pounds had quite an impact. Most commentators calling for more QE were expecting "only" £50,000 Million.

But one thing we have been mulling over is the comparative amount of money.

About one year ago, Ben Bernanke, chairman of the US Federal Reserve announced his QE2 would amount to $600,000 million.

Because the USA has Gross Domestic Product (GDP) of around $15, 000, 000, 000, 000. It accounted for just about 4% of GDP.

In the UK, our GDP is about £1,200 billion, so an additional £75,000 million, would be equal to about 6% of GDP. This is in addition to the first round of £200,000 million, equal to 16% of GDP.

Comparatively speaking, had the US embarked on QE of the same magnitude, it would have been in the region of $1,000 Billion, not the $600 billion they did spend.

Does Uncle Mervyn know something that we don't?

I would bet my "nine bob bit" on it.