Thursday 23 August 2012

QE costing Scottish jobs?

Not only is the Bank of England's policy of keeping interest rates low hitting savers hard, it now seems that their policy of quantitative easing (QE) may be partly to blame for the collapse of Dawson International last week. The BofE itself admits that while QE "has a broadly neutral impact on a fully funded defined benefit scheme", "schemes that were already in substantial deficit before the financial crisis are likely to have seen those deficits increased". Quite. Exactly what has happened to the Dawson pension scheme, resulting in the company going into administration and putting 180 Scottish jobs at risk. The idea of a Scottish bank, based on old-fashioned values of thrift and probity, and our own currency should we become independent, is becoming more attractive by the day.

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