Bean made clear that the Bank of England’s policy is to impose a 5% pay cut on the UK, as fairly as it thinks possible by the use of interest rates and QE, which means just about as unfairly as it is possible to be.
This, he said, is the goal because unless a cut in income is imposed the cost of war will not be suffered by the economy, and suffer it we must.
Nowhere else is doing this.
We do not need to do it.
Nor should we be imposing hardship, as he agreed was the inevitable outcome, and on which he dismissed the concerns Danny and I have.
He had no argument to back up his claim that we must suffer. He just said we must.
How’s real GDP doing? Real GDP being the aggregate of all incomes of course. So, how much is there to go around?