I have reservations about quantitative easing. I hope to say more on the issue soon. My big problem with it is that it has been captured by the banks for their own gain.

But right now Euro bond markets are in crisis and Spain, Portugal, Belgium and others (I’ve even seen the Netherlands mentioned) are under threat. In that case a central bank has to intervene and buy gilts for three reasons.

First to support the currency.

Second to reduce interest rates by increasing prices.

Third to stabilise the markets.

And I hate to say it a fourth benefit will arise — which is that banks are stabilised — but because this is by providing them with super normal profits additional taxes, or better still, equity stakes have to be taken in exchange.

It’s a bargain the European Central Bank cannot avoid now.

But will it do it?