Hardly any time has passed since a hefty 75 billion pounds in Quantitative Easing was committed to boosting the UK economy.  The discouraging part about the act of QE is that nobody knows for sure what effect the decision will have.  The proof is in the figures when looking back at what happened with the first round of QE.  The UK GDP increased almost 2% and inflation crept up between .75 and 1.5%.  But did it positively affect the Brit economy?  That is the burning question on the minds and hearts of UK residents, as the die are rolled once again in the form of more governmental funding.  

Martin Weale, a distinguished member of the Bank of England’s Monetary Policy Committee, already doubts the effectiveness of another round of QE.  Remember, this is the same Martin Weale who supported an increase in the base interest rate.

The question for most is what happens to the cash after it is distributed.  To the surprise of many, the money is not placed in the hands of investors who are able to turn that money into more.  Much of the 75 billion is used to buy government IOUs from banks, pension funds and other creditors.  It is however, a challenge to understand what happens to the funds after it is shuffled out.  

There is an overwhelming reliance on this round of QE to solve many of the UK economy’s fundamental issues.  Of course, this is a huge gamble, but anything else would be considered just as much or even more of one. 

So, as another round of QE is enacted the collective breath of the UK is held until true results of exactly what effect this round had on the economy is realized three to six months from now.