Look, it was really quite dull waiting to be called into the jury room two weeks ago. So forgive me for this. When the big document comes out, please read that instead; it has graphs too.
The ballad of Mervyn's shovel A year ago the credit crunch had reached its grim nadir The economy in freefall, money markets gripped by fear The FTSE tumbled every day, banks tottered left and right Making factories stand silent, and our currency take fright. The only shop with customers was called JobCentre Plus And the truly self deluded begged Beijing to rescue us Loud sobs were heard in Downing Street: "There's no more cash to spend Without the government buying things, this surely is the end - - we've shot our final bolt, and interest rates can fall no more" ... when knocked the Bank of England Governor, with a shovel, on the door. Behind him, spewing green stuff, steamed a money printing press and he smirked "I've got the very thing to save us from this mess" Both the Chancellor's mighty eyebrows took a leap towards the ceiling The money flooding out gave him that 'Denis Healey' feeling. "Infla..." he checked himself. "Guv'nor, I'm rather disappointed" "To inflate away our troubles wasn't why you were annointed" But the Guv'nor mollified with words like "money multiply" till the Chancellor signed the letter with a wary, weary sigh. All year the money flooded out. At first you couldn't tell Though the Chancellor's many IOU's have never sold so well Then the City caught a handful of this newly-printed stuff so that bonds, shares and derivatives, and such financial fluff, began to rocket skywards, making City spivs seem clever And they paid themselves as if it came just from their own endeavour. But despite the Govnor's shovel, money doesn't multiply Because it's being shovelled far from where the problems lie. You see, the Lady of Threadneedle Street's a curious kind of prude Who'll debauch herself on public debt, but think it beastly crude to grant her money favours in the world of private credit Even though a loss is still a loss, not matter what risk bred it. And so this money flood, that sometimes seemed to be unending Stayed trapped within the City world. The banks were still not lending: To businessman or householder, this 'quantitiative easing' - that's meant to fill the world with cash - is monetary teasing. You read about it, see it, but like smoke upon the air you say "Well I'd like some of that", reach out - but it's not there. It's great if you have art to sell. Or some fine London pad. But if you're poor and need the cash, there's nothing to be had. It's great if you've a bunch of shares - for those already wealthy, the year since what they call 'QE' has been quite nice and healthy. But surely this was not the point. Why do this money printing just to help those lucky sorts that hardly need such extra minting?
UPDATE: Paul Cotterill has formalised the poetry competition on QE here. And extra points will be awarded for anyone including a discussion of the pound sterling, as mentioned on John Redwood’s blog, and how it has in fact risen by 10% against the dollar since QE began . . .