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MP criticises party leaders for 'easy money' policies
WYCOMBE MP Steve Baker has criticised the monetary policies being followed by his party leaders – saying the economics learned at university by George Osborne was “wrong”.
Speaking alongside German economist Detlev Schlichter last week, Mr Baker said the coalition Government is still taking advice from economists who failed to predict the financial crash five years ago.
The pair hit out at the continued creation of ‘new money’, or Quantitative Easing, by the Bank of England and Federal Reserve – arguing it creates huge distortions in the economy and will lead to further financial shockwaves.
Beaconsfield-based financial advice firm 2hwealthcare staged the event at Buckinghamshire Golf Club on Wednesday last week, with about 80 of their customers and guests in attendance.
Mr Baker, who co-founded economic think-tank The Cobden Centre, said the Labour government had helped cause the financial crash by tripling the money supply while in office.
But he also hit out at his colleagues in the Conservative Party for injecting even more digitally-created cash into the economy.
Mr Baker referred to a ‘Keynesian consensus’ among the current generation of economists - telling the meeting that Chancellor George Osborne is “very badly advised” and “any system he learned at university would have been wrong”.
And he told the Bucks Free Press afterwards: “It’s time he stopped listening to the same economists that didn’t see the crisis coming, and starting listening to those that both saw it coming and foresaw the general pattern of events."
He believes Quantitative Easing is a way of “bailing out banks surreptitiously” and has built a system which is dependent on 'easy money' and creates social injustice.
Introducing his new book called Paper Money Collapse, Detlev Schlichter said the continued creation of new money will eventually lead to a “super correction” in the financial system.
He acknowledged the recent rounds of QE would stimulate short-term growth, but said they would only succeed in delaying the pain, as well as risking "inflationary meltdown".
Mr Baker writes regular blogs on the economic situtation (see related links).
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