Free Money For Bankers Via Qe

[leicestersq]

Interesting blog from the BBC.

http://www.bbc.co.uk/blogs/adamcurtis/2011/12/the_bitch_the_stud_and_the_pra.html

Like Guy Hands, Michael Spencer too has found an innovative way of making money out of the best intentions of the government. He is one of a select group of City brokers who make Quantitative Easing work.

Their job is to buy up bonds using government cash - taking a tidy cut for themselves for every bond purchased. At the last count the government had pumped in £275bn. Spencer has been quoted as saying "the crisis is good for business."

A quote from the article.

So it is recognised that the way the state is doing QE is wrong. If you are going to carry out this policy, it should be via direct financing of state expenditure through money printing, or else you give bankers money for free.

Anyone see "The Calamari Wrestler"?

[zugzwang]

Magnificent find. Adam Curtis is a national treasure IMHO.

Nothing changes in the City of London, does it? Except maybe the scale and impertinence of the rackets.

AIG, MF Global, Bernie Madoff, Lehman Brothers International etc. all ran their scams and frauds through the Bent Mile. And those are just the guys who got found out.

[billybong]

.... you begin to wonder whether the whole of the subsequent economic and foreign policy of Britain and the United States wasn't created by the rubbish movies of the 1980s.

The movies weren't THAT bad - but the writer does have a point.

Edited February 29, 2012 by billybong

[MinceBalls]

Thing is, the government don't think they are doing it incorrectly as the intended purpose is to save the banks. That's the only reason QE exists and therefore in their mind it is absolutely correct. And in their backward world I suppose they are right.

You are making the assumption that they want to increase productivity with QE to get us out of the doldrums but of course this has never been their intention as all they want to do is save the banks.

So it is recognised that the way the state is doing QE is wrong. If you are going to carry out this policy, it should be via direct financing of state expenditure through money printing, or else you give bankers money for free.

Anyone see "The Calamari Wrestler"?

[erranta]

Magnificent find. Adam Curtis is a national treasure IMHO.

Nothing changes in the City of London, does it? Except maybe the scale and impertinence of the rackets.

AIG, MF Global, Bernie Madoff, Lehman Brothers International etc. all ran their scams and frauds through the Bent Mile. And those are just the guys who got found out.

It's now in the City 'interest' to keep the ball rolling and Qe cash flooding in

[Milton]

Interesting little addendum I discovered quite by accident today, when I checked this months interest on my bank statement.

As most bank accounts operate a fixed rate of Interest, it may surprise you to learn that your interest rate has dropped slightly.

As every Four years we enter a leap year, during which an extra day is added, and 2012 is a leap year.

As Bank Accounts operate a fixed rate of interest, your bank will be calculating your interest minus one day throughout 2012.

So every fourth year 1/366or 0.0027% will be deducted from tens of millions of bank accounts in the country.

If only Central and local Governmnet paid attention to the minutae, instead of being the most wasteful organisations ever to have existed....................

Edited February 29, 2012 by Milton

[Guest tbatst2000]

I really want to see that boxing prawn movie now!