Quantitative Easing - do you get that from Boots...?

Quantitative Easing - sounds like some deadly remedy from childhood days. A lethal cough linctus or on similar lines to 'milk of magnesia'... It congures up images of Victorian institutions ...

But in fact, as we all now know, it's a fancy way of saying Gordy is printing money. It feels a bit like joining the ranks of Zimbabwe or being in the Weimar Republic in the 1930's - but what are the implications for us all and what is likely to happen? It didn't work for Japan in the late 90's so why take this big last gamble?

Reading the press on this, my conclusion is that we don't have much choice. We're damned if we do nothing and seem to be critisicised if we don't do anything. But 75 billion pounds of new money - it's mind boggling.

A month ago I wrote about business needing a kick start instead of another rate drop. Yesterday the Bank of England dropped the rate to 0.5% - a new unknown territory. Now 'quantative easing' can begin apparently, as all the other firepower has been used.

What will happen is that the BOE will create 'virtual money' (not actually print cash) and use this to buy bonds and other securities from banks in the hope that they will use the money to lend to business and consumers.

The big risk is that the banks will hoard the money and sit on their hands, and nothing will happen.

Let's hope not, as there's a lot staked on this, and not many options left.