to debt crisis. The BoE can simply interpret its mandate for stable prices to include not contributing to a debt crisis. Eventually the Bank will be able to unwind its position. So long as they don't appoint Trichet... I think it is distinctly possible that some of the QE will never be unwound, simply because raising interest rates is a much more effective way of controlling inflation and supporting sterling. But I certainly wouldn't be shouting that from the treetops right now. And I've deliberately said "some". I think it is very important for investor confidence that the Bank of England is at some point seen to be doing reverse QE, even though it may not be strictly necessary to control inflation. Where I really take issue with Richard is his notion that because QE gilts can be excluded from UK debt/GDP figures, that gives us an opportunity to borrow much more. And I also object to his idea that future deficits would be QE-funded. Either of these would in my view be irresponsible financial management and we would pay the price in higher interest rates and sterling weakness.