Daily Mail
"But the backdrop has changed radically since then. Faced with the deepest recession in at least three decades, the Bank is engaged in an operation grandly titled 'quantitative easing' - and better described (despite the winces of its officials) as printing money.Fresh cash is being minted to buy government bonds, sustaining demand for Treasury paper and making it much easier to hold down the cost of public borrowing.
Do not underestimate the size of this operation. The Bank has offered an initial forecast that it could print up to £150billion - equal to 10 per cent of national output and approaching the scale of the government's entire expected borrowing requirement for this fiscal year.Given the Bank is now in the unparalleled position of helping prop up the Treasury's finances, King has clearly decided he has earned the right to comment on its debt plans. After all, he is indirectly turning into one of the government's biggest lenders.The Treasury's deficit is only likely to get worse in the coming years. It will be a huge battle to maintain the market's confidence."
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