Ketchup in a bottle

Fraser Nelson interviews Black Swan author Nassim Taleb in this week’s Spectator. Taleb warns that the UK’s Quantitative Easing programme could have serious inflationary consequences in the future. “It’s like a ketchup bottle. you try to pour money out of the ketchup bottle: nothing comes out, nothing comes out – and then everything splashes. Every single person who has tried QE, or a form of printing money, has effectively lost the argument. Turkey had it, Brazil had it, Argentina had it, Italy had it when they debased the Lira. Even Weimar Germany claimed that QE made the government rich … We have a 90 per cent chance of seeing nothing and 10 per cent of having an explosion.”

Global Economy & Finance