LONDON, 24 August 2012 - Comment from BullionVault, the world's #1 gold-and-silver investment provider online, features today in a Daily Telegraph exposé of how the Bank of England's quantitative easing has boosted its own staff retirement fund.
Writing as the UK central bank publishes a defence of its money-creation and zero interest-rate policies, "The Bank of England is absolutely right to say that pensioners have gained from its controversial policy of quantitative easing (QE)," writes Ian Cowie, personal finance editor of The Daily Telegraph since 1989.
"It artificially depressed interest rates and boosted [government-bond] gilt prices - particularly those indexed against inflation. But it really should have found time to explain that the pensioners it was referring to in its statement yesterday are those fortunate members of its own staff retirement fund, which began buying index-linked gilts with both hands shortly before QE began."
Cowie goes on to quote exclusive comments from Adrian Ash, head of research at BullionVault, whom he calls "an eagle-eyed observer of government attempts to debauch the currency."
"The Bank?s only defence [for QE] is that the economy would have been worse off without it," says Adrian. "But that is unprovable - and it's certainly unproven by today's huff. This special pleading will be small comfort to existing pensioners...new retirees...[or] those of us saving for retirement."
You can read the full story at The Telegraph here...
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