Last modified on 16 May 2014, at 10:08

Vince Cable

These masters of the universe must be tamed...

John Vincent Cable (born 9 May 1943) is a British politician, MP for Twickenham, the Liberal Democrats' Deputy Leader, and the Business Secretary under Prime Minister David Cameron.

SourcedEdit

  • These masters of the universe must be tamed in the interests of the ordinary families whose jobs and livelihoods are being put at risk... The Tories won't say anything about the current crisis as they are completely in the pockets of the hedge funds.
  • The big, looming, monetary issue is "quantitative easing": that is, printing money. What happens is that the government borrows from the Bank of England, not from the markets. It expands the money supply to keep the economy going and also to counter deflation without simultaneously increasing government debt. The attractions are obvious, as are the dangers. The Robert Mugabe school of economics provides a salutary warning about uncontrolled monetary expansion in generating hyper-inflation. The road to Harare is not as long as we might hope. Monetary easing may prove to be necessary but will have to be managed with great skill and care: Too little easing and the crisis drags on – as in Japan. If there is too much, the authorities face the messy task of mopping-up liquidity by issuing bonds which add to the burden of borrowing or else we lurch back from deflation to inflation. So interest rates may soon become yesterday's story.

AboutEdit

  • We have to be careful of Vince Cable, he's extremely sharp and clever. In fact, he's almost as sharp and clever as he thinks he is.
    • An anonymous Conservative aid quoted on Newsnight.

External linksEdit

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