Mervyn: right guys, before we go in and the recorder gets switched on I'd like to have a quick word. The economy is still clearly a mess, though maybe slightly less of a mess than it was. It's certainly not ready for any tightening - it'd kill the bond markets and the currency would rally if anyone thought we were going to do anything rash, but we're already pretty much maxed out on bond buying and cutting rates when no one is lending anyway is just pushing on a piece of string. The only help we can really provide is to keep the currency weak, but we're not allowed to say that out loud and unfortunately the yanks and the japs have had the same idea - and both have more firepower than us. Fortunately Europe's still refusing to play the QE game, and they're our biggest trade partner, so we can certainly target them. So here's the plan.
I'm going to propose we do more QE and claim its to support the recovery. You and you (points at random at two of the others), you vote with me. Everyone else votes against. Then we appear to still have an easing bias, the currency stays down against the Euro and everyone wins without us actually having to do anything.
Everyone except the Europeans obviously (cue evil laughter from all).
Ok. Everyone clear? In we go then.
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