75 Billion Quid Pumped Into The Economy By The Bank Of England. What If...

[beorhthelm]

Under a Tory government they just create money that never existed ?

and as Labour did to the tune of £200billion. they dont actually print anything, hence why its got this cute name, because it is different. its quite clever as i understand it: banks/pensions/investment funds lent you billions in the past, you simply pay them back with immediate effect. they now have £75bn some of which they are obliged to spend on... new bonds from the treasury, so it comes right back. some also goes in to the stock market so we all feel warm and fluffy as we see the FTSE go up (and is genuinly good news for many pensioners or those nearing retirement), even though it doesnt really make a blind bit of difference to the actual FTSE companies balance sheets.some of it also goes in commodities and derivities, which is not so good for inflation, but right now its the lesser of evils.

personally, i dont see the point, as it doesnt come with any caveat to actually lend, the banks can just horde it. the main problem to growth (apart from no policy to assit growth) is the rest of Europe is f***ed and we already have better growth then most, so really theres nowt we can do.

 

[Triggaaar]

and as Labour did to the tune of £200billion. they dont actually print anything, hence why its got this cute name, because it is different. its quite clever as i understand it: banks/pensions/investment funds lent you billions in the past, you simply pay them back with immediate effect. they now have £75bn some of which they are obliged to spend on... new bonds from the treasury, so it comes right back. some also goes in to the stock market so we all feel warm and fluffy as we see the FTSE go up (and is genuinly good news for many pensioners or those nearing retirement), even though it doesnt really make a blind bit of difference to the actual FTSE companies balance sheets.some of it also goes in commodities and derivities, which is not so good for inflation, but right now its the lesser of evils.

personally, i dont see the point, as it doesnt come with any caveat to actually lend, the banks can just horde it. the main problem to growth (apart from no policy to assit growth) is the rest of Europe is f***ed and we already have better growth then most, so really theres nowt we can do.

I'm goint to have a beer

 

[beardy gull]

"Printing money is the last resort of desperate governments when all other policies have failed." - George Osborne 2009

 

[vegster]

"Printing money is the last resort of desperate governments when all other policies have failed." - George Osborne 2009

Right so, when the labour government did it, it was wrong, but when a Tory government does it despite claiming it's a wrong, desperate policy, it's ok ?

These guys make Meade's Ball intelligable

 

[Herr Tubthumper]

Whiich is what Stephanie Flanders should have asked Mervyn King about on PM this evening.

There's something about Stephanie Flanders that I like.

 

[dingodan]

Money, explained.

 

[cunning fergus]

Right so, when the labour government did it, it was wrong, but when a Tory government does it despite claiming it's a wrong, desperate policy, it's ok ?

These guys make Meade's Ball intelligable

Well, how about when Labour printed money it was as a consequence of failures in the financial system that had been caused directly as a consequence of Labour policy, hence the recent apology by Balls. To be fair to Osbourne (not that he deserves fairness much of the time) he's inherited the shit palace from Labour and given the current economic conditions are a legacy of 2008 he has little options available.

 

[Bwian]

currently a billion is a thousand million, and a trillion is a thousand million.

I've read that sentence a dozen times and it still doesn't make sense

 

[vegster]

Well, how about when Labour printed money it was as a consequence of failures in the financial system that had been caused directly as a consequence of Labour policy, hence the recent apology by Balls. To be fair to Osbourne (not that he deserves fairness much of the time) he's inherited the shit palace from Labour and given the current economic conditions are a legacy of 2008 he has little options available.

Oh right, I mistakenly thought the financial crisis was caused by the collapse of the US sub-prime market leading to the bankruptcy of Lehman Brothers Bank and subsequent domino effect through the western banking system.

 

[H block]

Oh right, I mistakenly thought the financial crisis was caused by the collapse of the US sub-prime market leading to the bankruptcy of Lehman Brothers Bank and subsequent domino effect through the western banking system.

Cripes, economics AND ALLOTMENTS.

 

[seagurn]

so we'd get the same as palace paid there creditors then......we must be in a mess!

 

[beorhthelm]

Money, explained.

only utterly wrong. this obsession in certain quarters about debt and banks "inventing" money ignores the very issue presenting the banks today. when you take out a loan, the bank has to have the cash on their balance sheet, it doesnt appear because you signed up to the loan. the whole credit problem is because they dont have enough cash on the balance sheet to cover all their liabilities, so have to themselves borrow from another bank. yes, its a massive carousel, passing the money round the room to cover the debts for the day, but thats a whole different issue to what that video claims at the outset.

 

[Chicken Runner61]

Well, how about when Labour printed money it was as a consequence of failures in the financial system that had been caused directly as a consequence of Labour policy, hence the recent apology by Balls. To be fair to Osbourne (not that he deserves fairness much of the time) he's inherited the shit palace from Labour and given the current economic conditions are a legacy of 2008 he has little options available.

He might have inherited a benefits system that is soaking up money and a bloated public sector but you can't blame brown or labour for the world economy. In fact New Labour mearly took over from thatcher and major in getting in deeper with the bankers and the world banks which led to the failure of global economics. If the euro and other currencies fall and the European banks start to crash taking out your savings and pensions how will you blame brown for that after 2 years of Osbourne and cameron

 

[simonsimon]

"There's something about Stephanie Flanders that I like. "Quoted by Herr Tubhumper

She has been humped in the past by both ED MILLIBAND and ED BALLS.

True.

 

[Lush]

How can you be so mean to that nice Mervyn King.

 

[Pat McCrotch]

currently a billion is a thousand million, and a trillion is a thousand million.

I've read that sentence a dozen times and it still doesn't make sense

I think what brunswick means is a billion is a thousand million and a trillion is a thousand billion. Or a million million.

 

[simonsimon]

A £1000 per head is nothing in reality, as if all government liabilities were added up, every family in the United Kingdom owes the equivalent of £80,000 each to cover their share of the national debt.

 

[Chicken Runner61]

That nice mr king is osbournes biggest creditor if the BOE own a third of our national debt

 

[cunning fergus]

Oh right, I mistakenly thought the financial crisis was caused by the collapse of the US sub-prime market leading to the bankruptcy of Lehman Brothers Bank and subsequent domino effect through the western banking system.

You are wrong.

Even Mr Balls knows so..................."For the part that I and the last Labour government played in the global regulatory failure, I am deeply sorry."

Lehmans collapse was a symptom....................it was not the cause...............this global economic blather is what the politicians want you to think, looks like you've bought it.

It will go on too, all the while we have career politicians.

 

[Don Quixote]

Give me the money and I will sort things out by squandering it all.