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loginandtonic

Quantitative Easing - B.o.e. Buying Govt Debt From D.m.o. In Form Of Gilts

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If it were only working like you are saying, and it could be, then the BOE is handing the government 75B over the next year to spend to stimulate the economy in amounts determined by the monetary policy committee to prevent deflation.

At the end of the day Debt is in nominal numerical amounts of money at todays money value. As each day goes by, if you have inflation debt devalues if incomes rise.

The BOE is also spending 50B to support corporate debt issuance in amounts determined by the monetary policy committee in consultation with the team of analysts who travel around the country asking companies if they can borrow money and what conditions are like in their markets. I get the impression these companies are saying please please help us we are dying out here.

QE seems to make sense to me so far.

or how about we do away with a culture of companies needing debt wealth to outdo each other and instead move to a sound footing of organic growth from earnings rather than hare and tortoise economics of the madhouse which has got us where we are today

and stop messing with the money supply before we all grow mugabe moustaches and run out of 0s

and stop with this BOE handing Govt money stuff, it's thin air imaginary money, sounds very worrying to me - the boe doesnt have any money it only has a licence to print it, its like nursery paint class gone mad ffs

Edited by loginandtonic

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The governors job is to ensure there is sufficient money in the economy. Whatever stupidity got us this far i think we can argue there is insufficient money in the economy.

No, the governors job is to steal as much as possible.

He's just a fat piggy thief. They all are. They'll keep on eating until it all collapses then try and look innocent with their loot well hidden.

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or how about we do away with a culture of companies needing debt wealth to outdo each other and instead move to a sound footing of organic growth from earnings rather than hare and tortoise economics of the madhouse which has got us where we are today

and stop messing with the money supply before we all grow mugabe moustaches and run out of 0s

and stop with this BOE handing Govt money stuff, it's thin air imaginary money, sounds very worrying to me - the boe doesnt have any money it only has a licence to print it, its like nursery paint class gone mad ffs

If the government prints money it devalues money and we get high inflation and people who rely on savings in their old age are impoverished and nobody works productively but just works the inflationary get debt get rich machine by leverage.............which sounds like what happened to me. Inflation was hidden by fraudulent methods

If there is an honest government then we get less inflation and less growth and less ability to stimulate the economy to create jobs and people have to get less benefits and work harder and die for lack of health care insurance and that sort of thing.

There are no magic nursery paint class solutions here on either side of the political divide.

Right now i think a world wide deflationary event would lead to an ugly war and widespread inpoverishment.

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If the government prints money it devalues money and we get high inflation and people who rely on savings in their old age are impoverished and nobody works productively but just works the inflationary get debt get rich machine by leverage.............which sounds like what happened to me. Inflation was hidden by fraudulent methods

If there is an honest government then we get less inflation and less growth and less ability to stimulate the economy to create jobs and people have to get less benefits and work harder and die for lack of health care insurance and that sort of thing.

There are no magic nursery paint class solutions here on either side of the political divide.

Right now i think a world wide deflationary event would lead to an ugly war and widespread inpoverishment.

:lol::lol::lol::lol::lol::lol::lol:

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I'm not a hypocrite.

I'll tell you right now that I simply don't care that much about random strangers.

Why would I?

In a logical view you are totally separated from all other matter in the universe.

In a holistic view you cannot be ever separated from all matter in the universe.

Science understands that logic alone does not describe the universe which simply exists regardless of known laws or unknown laws.

You have decided science is wrong.

Other humans recognise they are part of all of the universe and all of the humans on the planet.

You have decided that they believe that because they are foolish.

Other people decide they believe that because they are honouring their own in built humanness which sees the world in dualistic terms by either logic or holism.

Science suggests to us that to understand reality correctly we need to see the concrete wholes that exist so that we are 'Wholistic' as well as seek to understand the tiny parts we can actually touch and feel and smell and look at and listen to.

You of course have invented your own science. Your science separates you from all other humans.

And you condemn the other humans because they are not like you.

Mr Piggy is condemned when he seems by your words to be just like you.

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BOE is printy printy electronically and buying gilts from the Debt Mad Orifice whoops I mean Management Office.

BOE is using QE thin air money creation.

This is the govt printing money to pay its debts by an underhand method.

How come this is allowed and not a massive outcry from the Opposition, Cable, LibDem, the EU, IMF, Zeus, Peter Pan and everyone else?

This seems a blatant Zimbabwe like M.O. - what gives??

I thought that it was the Bank of England's job to decide how much 'base credit' there is in the economy. They clearly feel that there isnt enough, and they are doing their job and creating some more.

The reason that there is little outcry is that the economically educated understand that this is the right thing to do. There has been a huge fall in the total money supply due to the deleveraging of banks balance sheets. That means less 'bank credit'. Bank Credit plus Base Credit = Total credit. Because the new issuance of Base Credit is counterracting the collapse in Bank Credit, there shouldnt be too much inflation as a result if the Bank of England get their sums right.

This is good for the economy, because if that extra credit keeps worthwhile businesses solvent, they can keep producing the goods and services that we all need and love. And the real wealth of an economy is not gold or any monetary measure, it is the total amount of goods and services that we produce. Indeed, a judicious piece of monetary policy can stimulate positive changes in total output, that actually reduce the average price level.

Bear in mind, that all you have learned about saving to become rich, is normally wrong when it comes to macro-economics. These actions by the Bank of England are attempting to make the nation richer than it would otherwise be. And given the horrors of deflation unfolding in some other countries, I think that its policy is more than justified.

Well Done Mervyn.

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I thought that it was the Bank of England's job to decide how much 'base credit' there is in the economy. They clearly feel that there isnt enough, and they are doing their job and creating some more.

The reason that there is little outcry is that the economically educated understand that this is the right thing to do. There has been a huge fall in the total money supply due to the deleveraging of banks balance sheets. That means less 'bank credit'. Bank Credit plus Base Credit = Total credit. Because the new issuance of Base Credit is counterracting the collapse in Bank Credit, there shouldnt be too much inflation as a result if the Bank of England get their sums right.

This is good for the economy, because if that extra credit keeps worthwhile businesses solvent, they can keep producing the goods and services that we all need and love. And the real wealth of an economy is not gold or any monetary measure, it is the total amount of goods and services that we produce. Indeed, a judicious piece of monetary policy can stimulate positive changes in total output, that actually reduce the average price level.

Bear in mind, that all you have learned about saving to become rich, is normally wrong when it comes to macro-economics. These actions by the Bank of England are attempting to make the nation richer than it would otherwise be. And given the horrors of deflation unfolding in some other countries, I think that its policy is more than justified.

Well Done Mervyn.

"the right thing to do" - eery catchphrase that's subliminally catching on, or is that you DB?

no good debasing the currency under the excuse base credit needed to replace bank invented money/credit, it just doesn't wash me old son

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If the government prints money it devalues money and we get high inflation and people who rely on savings in their old age are impoverished and nobody works productively but just works the inflationary get debt get rich machine by leverage.............which sounds like what happened to me. Inflation was hidden by fraudulent methods

If there is an honest government then we get less inflation and less growth and less ability to stimulate the economy to create jobs and people have to get less benefits and work harder and die for lack of health care insurance and that sort of thing.

There are no magic nursery paint class solutions here on either side of the political divide.

Right now i think a world wide deflationary event would lead to an ugly war and widespread inpoverishment.

people who advocate qe as well intentioned as you & they may be dont seem to realise castles in the air, straw feet, quick fixes and other nonsense are what got us where we are now - on the brink. have you people never heard the phrase 'best lemonade rather than cheap champagne'??

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But the police don't try to kidnap you for parking tickets.

The court just sends bailiffs around to take your tele.

The police won't arrive when you refuse the bailiffs and defend yourself against them? :o

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No Injin said he is incapable of caring for people he doesn't know or has no interactions with. This is clearly nonensense for a median human being. People are capable.

He didn't say that at all - he said he simply doesn't care about random people who he doesn't know. He's simply stating the obvious and it would be true for most of us. Certainly is for me - people are dying every minute somewhere in the world but I'm not going to lose any sleep about it unless I happen to have some personal relationship to them.

Of course, as a result of stating that he's been accused of being little short of a psychopath by a bunch of people who come across as having an axe to grind with him.

In the process, a very interesting thread about QE and gilts has been ruined. Please take your personal vendettas somewhere else and stop ruining threads.

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