The government will have to print money to finance public spending, moving quantitative easing to a new level, the manager of one of London’s biggest hedge funds told the FT. Mike Platt, co-founder and chief executive of BlueCrest, Europe’s fifth-largest hedge fund, had been predicting quantitative easing in the UK for six months before it was adopted by the Bank of England last month. But the bond trader said the government, facing plunging tax revenues, now had little choice but to move to “heavy” quantitative easing, printing money to buy new gilts to support public spending. “The easiest way for the system to be saved is to print money,” he said. “It is the only policy option left.”

This entry was posted by Stacy-Marie Ishmael on Monday, April 6th, 2009 at 5:09 and is filed under Capital markets, Hedge funds. Tagged with bluecrest, Mike Platt, quantitative easing. Edit this entry.