BBC News reported today that newly de-classified files from 1945 reveal that MI5 concluded that a Nazi counterfeit currency programme which increased the amount of British Pound notes in circulation by 10% during World War II had achieved the Nazi’s goal of “destroying confidence abroad in Bank of England notes”.

By contrast, during the 3.5 years since September 2008, the Bank of England has increased the amount of British Pound notes in circulation by 28% and increased the total UK money supply by a factor of 3.34 times! Has this also had the effect of “destroying confidence abroad in Bank of England notes”? Well, the fact that the British Pound has lost almost 60% of its value relative to the price of gold since September 2008 might be a clue.