Printing money must be "last resort" - Cameron

By William Green on Jan 8, 09 01:12 PM

Just back from interviewing Tory leader David Cameron on how the economy can be saved from complete meltdown.

And it is clear that he doesn't like the idea of the Government printing more money - ÃÂ la Robert Mugabe - to beat the recession, although Mr Cameron has not ruled it out totally.

Extra Government cash could be used to buy assets such as Government or commercial debt, or private equities.

But it would raise fears about hyper-inflation seen in Zimbabwe and 1920s Germany, starkly illustrated by photos of wads of notes being transported in wheel barrows.

Speculation has been stoked by Chancellor Alistair Darling, although he today said: "Nobody is talking about printing money".

Mr Cameron said: "It is very much the last resort. It is a desperate thing to have to do and there are other things that should be done instead and that is what we are saying.

"But as George Osborne said yesterday you can never rule things out completely. These are extraordinary times."

He wants the Government to "swallow its pride" and take up his proposal of a national loan guarantee scheme to get banks lending again.
We also covered a lot of other subjects, which will be in tomorrow's Journal.

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