As Bank Governor King runs out of bullets to counter the financial crisis, the Bank of England is again on its way to reducing interest rates within this week.

The City is anticipating an additional 1 percent slash on Thursday following a huge cut from 5 percent to a record 315-year low at 1.5 percent in a few months.  

Avoiding deflation and preventing recession from turning into depression  are what the UK authorities are working on right now. But as the financial woes get worse, it appears that the official cost of borrowing is getting near zero.  

The Authorities are stepping up right now and what they have in mind is the Asset Purchase Facility. The scheme allows the Bank to purchase companies' debt with Treasury bills, freeing up funds so banks can lend.

The scheme is also called quantitative easing or printing money.