David Blanchflower, ex of the Bank of England Monetary Policy Committee, has called for the Bank to make the decision to expand its quantitative Easing programme when it has its monthly meeting tomorrow. It would be a surprise if there was any move to change the base rate from 0.5 % but it appears to be open season on QE. Although it has to be said that last month the British Chambers of Commerce did call for increased QE but also for a move of interest rates into negative territory so as to 'guarantee recovery'.

Some analysts have already predicted that they will increase the programme by as much as £50 Bn to £225 Bn. But Blanchflower has predicted that, despite a 0.4% drop in GDP, the MPC will limit this to just £25 Bn although he would like to see more.

But with many believing that QE has only propped up the banks, the equity markets and the Londin housing market, you have to wonder how much effect an increase in QE would have for businesses and consumers.

I suspect that it would keep the perception of growth going for a while longer. But as we have already embarked on this journey i am worried that a quiet decision has been made that QE will be expanded slowly but regularly without limit until the country's economy eventually catches up.

This would have the effect of soaking up the profits from the next business cycle, so that when the next diownturn occurs we will have absolutley nothing left to pay for it. The next downturn 10-25 years hence may well be a real eye-watering humdinger if we continue unfettered down this route.

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