Letter To The Daily Telegraph Re Quantitative Easing


The letter below was E-mailed to the Daily Telegraph as dated, (but see qualification).

93c Venner Road,
London SE26 5HU.
0208 659 7713

February 10, 2012


Re Angela Monaghan’s article on Quantitative Easing, the impression given by so-called investment fund managers that
the lowering of interest rates is a “killer blow” to pensioners is self-serving.

In June last year, the BBC’s “Panorama” programme revealed that management fees paid by investors although sounding
modest at around 1.5-2% per annum eat up a considerable amount of the actual sum.

The advantage of a pension fund is purely one of tax relief; by “investing” in a fund, people are in effect handing over their
nest eggs to professional speculators who are paid enormous bonuses whether or not they “win”.

In 2002, Hermes Real Estate Investment Managers were paid £4.7 million by the British Telecom Pension Scheme as it
ran £6.3 billion into the red. The Chief Executive collected £748,247 including a £327,965 bonus.

Another investment director received £501,414, including a £323,920 bonus. Another seven directors each “earned”
more than £250,000.

People would be much better off managing their own pension funds ‐ ie playing the stockmarket on their own account - as
some do.

With regard to Quantitative Easing, the Govenment should abandon this and spend money directly into the economy as
advocated by the Positive Money pressure group, but to do that it would first have to withdraw from the Maastricht
Treaty, which forbids such practices, and is in effect the dictatorship of finance.

Yours Sincerely,
A Baron

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