Does Further QE make sense? What's the impact on cable?

Three major economic issues:
1. Ballooning fiscal deficit (projected to exceed 12% of GDP, the highest amongst all industrialised nations)
2. Quantitative easing (what you do when you can't lower interest rates any further, flooding banks with excess liquidity). QE was used in the US in the 1930s and by the Bank of Japan in 2001 to stimulate the country's stagnant economy).
3. Deepest recession since Second World War
The rise in QE has undermined sterlings rally.

Calyon is targetting $1.75 in cable by year-end 2009 and $1.90 by 2010 year-end.