As some readers will know, I have written a document that I call Plan B for Jersey. They have, of course, rejected it, preferring their current path to bankruptcy instead.
But, it looks like they're not alone in such folly. As the Financial Times notes today:
One former senior [Bank of England] employee, who is still in contact with the MPC, said there was widespread concern within the bank about Mr King tying himself to such a risky fiscal policy, which could yet derail the nascent economic recovery.
“There is no Plan B,” the former staff member said. “The only Plan B is that Mervyn buys more gilts
I am not surprised. Mervyn King has backed himself into an alley and by supporting the ConDems and like them has left himself no way out. The trouble is, in combination they are dragging the country with them, And that's the real disaster.