The extra magic money brings when you get your bank to print it and use it to buy your debt
An exchange of letters between Mervyn King at the Bank of England and George Osborne at the Treasury is causing a bit of excitement among economists and also among in-the-know construction folk. They see a chink of light in the black cloud that is Government capital spending intentions, as the Treasury gets a cash boost of some £20 billion, £30 billion maybe more from the excess cash in the Quantitative Easing pot. It’s an accounting trick that’s raising more than a…