Barry, I agree with you that QE is not normally an optimal solution, and I've outlined some possible negative consequences of it in the past.
But if administered as a medicine to the economy, in correct doses, it can be taken as a benevolent medicine.
Inflation from QE could affect imported goods, but not necessarily home-made products, providing the Government were to impose a strict inflation-control while administering QE, for example a maximum of 5% inflation a year (but even 2-3% is acceptable and preferable).
So there would be an inflation average between home-made and imported products (for example metal).
Currently we still have some North Sea oil and gas so this should ease inflation on essential imported commodities.
As a result, there would be more incentive to produce in Britain and to import less of that which we can manufacture here at Home.
Meaning: more jobs, lower trade deficit - or even a trade surplus, less benefits being paid owing to increased employment.
However, as all this cannot come about in 3 days, it is essential that the next QE be dedicated in part to incentives towards more employment, such as state-funded apprenticeships and training courses where the participants (local Brits thank you
) get at least a tenner an hour during their training courses, including on-site induction in factories.
The State could also use some of the QE to top up the minimum wage to a tenner an hour without the difference having to be paid by the employers.
Result, enormous stimulus to the economy as spending power increases.
A signing-off premium of £1,000 pounds to all who manage to get employment would also help, with a further £1,000 after 1 month of successful demonstrated employment (even part-time).
All this, Barry, is as an alternative to my previous solution, which would have been a modest Wealth Redistribution Act towards the super-rich. But evidently the Gov. is not up to such a move, hence my next-best plan: QE (as described here).
You saw it here first, right!
