Bruce Banner Posted August 16, 2016 Share Posted August 16, 2016 Debt, housing bubbles etc. Worth watching if you can catch it on BBC iplayer. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 16, 2016 Author Share Posted August 16, 2016 His suggestion is... print money and give it directly to the population (helicopter money).... but, make it compulsory that, if an individual is in debt, the money must be used to pay off the debt... Could it work? Quote Link to comment Share on other sites More sharing options...
spyguy Posted August 16, 2016 Share Posted August 16, 2016 His suggestion is... print money and give it directly to the population (helicopter money).... but, make it compulsory that, if an individual is in debt, the money must be used to pay off the debt... Could it work? Yes. But ... - Currency would be toast. Zimbabwe, As soon as inflation kicks in its hard to stop. The UK needs productive growth. The way to achive that is to spend on infrastructre not a load of outreach + stop smoking publci workers and fat ar5ed single parents. Cut income tax. Cut benefits. tax economic rents - housing. Quote Link to comment Share on other sites More sharing options...
knock out johnny Posted August 16, 2016 Share Posted August 16, 2016 His suggestion is... print money and give it directly to the population (helicopter money).... but, make it compulsory that, if an individual is in debt, the money must be used to pay off the debt... Could it work? It will work brilliantly if it goes to an indebted BTL'er Quote Link to comment Share on other sites More sharing options...
shindigger Posted August 16, 2016 Share Posted August 16, 2016 His suggestion is... print money and give it directly to the population (helicopter money).... but, make it compulsory that, if an individual is in debt, the money must be used to pay off the debt... Could it work? Hes been saying this for years. Only trouble with this is, that the individuals debt will be cleared very nicely thankyou, but that £30k 2nd hand Maserati that i might have treated myself to, has just hit £50k overnight. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 16, 2016 Author Share Posted August 16, 2016 It will work brilliantly if it goes to an indebted BTL'er In the case of those jokers I doubt it would touch the sides, although it would force them to reduce their debt by that amount and presumably there would be some mechanism to stop them ramping it up again. Quote Link to comment Share on other sites More sharing options...
btd1981 Posted August 16, 2016 Share Posted August 16, 2016 Only their own self-restraint. Quote Link to comment Share on other sites More sharing options...
knock out johnny Posted August 16, 2016 Share Posted August 16, 2016 If the bank bailouts due to greed and loose lending controls caused (rightly IMHO) a cry of 'moral hazard' why should a borrower bailout due to greed and lack of self-restraint not warrant a cry of 'moral hazard' also? Quote Link to comment Share on other sites More sharing options...
Philby1 Posted August 16, 2016 Share Posted August 16, 2016 In the case of those jokers I doubt it would touch the sides, although it would force them to reduce their debt by that amount and presumably there would be some mechanism to stop them ramping it up again. What about if you're at a level of debt leverage you have to do community service to reduce it to an acceptable and sustainable level, through minimum wage payments? Be a good lesson for for the greedy and debt is wealth mentality. This isn't a serious suggestion, I just like thought of seeing a load of nasty greedy BTLers shaming in public painting a fence or cleaning a wall in high viz jackets! Quote Link to comment Share on other sites More sharing options...
shindigger Posted August 16, 2016 Share Posted August 16, 2016 I don't agree with it at all, just as I didn't agree with Adair Turner's "radical" proposal to bailout borrowers and forgive their debts. It doesn't address the fundamental issues relating to inequality of asset holding. Issuance of credit and the increase in the money supply has massively boosted the value of property and other assets. If you issue yet more money, only some of which is to pay down debts, then net net you have increased the money supply further (particularly base money) and caused further increases in asset values and inequality. I would only support such a measure if we implemented a meaningful Land/Wealth tax and raised rates to reduce the money supply and reduce asset values with the view to a broader re-distribution and flattening of inequality. Well meaning but poorly thought through. Not the sort to listen. +1. Quote Link to comment Share on other sites More sharing options...
Wayward Posted August 16, 2016 Share Posted August 16, 2016 Why be productive if money is free? Less production equals everyone poorer. Fact these absurd ideas are being seriously discussed is clear sign something is very wrong. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 16, 2016 Author Share Posted August 16, 2016 (edited) Why be productive if money is free? Less production equals everyone poorer. Fact these absurd ideas are being seriously discussed is clear sign something is very wrong. Good point. The main thing that made me ***** up my ears while listening was not the suggestion of money printing as a way forward but that here was someone, on a mainstream media programme, saying that the country is drowning in personal debt and a housing bubble. Exactly what many here have been saying for years. Edit: I can't believe that P R I C K is in the swear filter . Edited August 16, 2016 by Bruce Banner Quote Link to comment Share on other sites More sharing options...
billybong Posted August 16, 2016 Share Posted August 16, 2016 (edited) At least it's not giving the few the first access to the money to buy everything up and bump up prices before everyone else gets some dribble down. With this form of helicopter money the few will pre-empt it by bumping up prices to start with - they'll still be the only ones really benefiting - and borrowers will get their assets/houses for free again with a bit of a boost to the capital value (then a bit of compo on top if they're in a Nimby area with nearby house building). Probably kicks the can for a short period then there'll have to be more of the same. Crazy - another NuEconomics something for nothing variation. No doubt Nero was given plenty of similar ideas in his day. Edited August 16, 2016 by billybong Quote Link to comment Share on other sites More sharing options...
winkie Posted August 17, 2016 Share Posted August 17, 2016 Why be productive if money is free? Less production equals everyone poorer. Fact these absurd ideas are being seriously discussed is clear sign something is very wrong. ..something must be wrong or not working......instead of pumping more money into the system should we not be extracting it so that we don't require so much of it to live?......reset. Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted August 17, 2016 Share Posted August 17, 2016 http://www.bbc.co.uk/iplayer/episode/b07p4sg4/hardtalk-steve-keen-economist Rewatch Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted August 17, 2016 Share Posted August 17, 2016 His suggestion is... print money and give it directly to the population (helicopter money).... but, make it compulsory that, if an individual is in debt, the money must be used to pay off the debt... Could it work? If the money is paid off debt then it should be removed from the system afterwards. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 17, 2016 Author Share Posted August 17, 2016 http://www.bbc.co.uk/iplayer/episode/b07p4sg4/hardtalk-steve-keen-economist Rewatch Yes, his explanation is far better than my one paragraph precis. Quote Link to comment Share on other sites More sharing options...
zugzwang Posted August 17, 2016 Share Posted August 17, 2016 It's worth pointing out that SK advocates a debt jubilee only as an emergency measure to prevent a Great Depression after everything else has conspicuously failed. Reforming the economics curriculum and replacing the dominant neoclassical, rational expectations model with a scientifically literate one is his principal ambition. Quote Link to comment Share on other sites More sharing options...
scepticus Posted August 17, 2016 Share Posted August 17, 2016 ..something must be wrong or not working......instead of pumping more money into the system should we not be extracting it so that we don't require so much of it to live?......reset. Quite so. Quote Link to comment Share on other sites More sharing options...
GreenDevil Posted August 17, 2016 Share Posted August 17, 2016 His suggestion is... print money and give it directly to the population (helicopter money).... but, make it compulsory that, if an individual is in debt, the money must be used to pay off the debt... Could it work? Genius, im surprised Gordon Brown didnt come up with such a policy! Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 17, 2016 Author Share Posted August 17, 2016 Genius, im surprised Gordon Brown didnt come up with such a policy! Gordon Brown, and Cameron/Osborne, bailed out the indebted. This proposal, as I see it, would put money (albeit devalued) into the pockets of the prudent whilst forcing the indebted to pay off debt that they had never intended to. Quote Link to comment Share on other sites More sharing options...
Stay Beautiful Posted August 17, 2016 Share Posted August 17, 2016 £500 Billion helecopter money given to the banks since 2008. Interest rates down to 0.25% given to the people. Great New Deal. Quote Link to comment Share on other sites More sharing options...
sikejsudjek Posted August 17, 2016 Share Posted August 17, 2016 Well something needs to be done. The ponzi economy is now eating the productive economy. In the long run everyone looses out except for the 1%. Personally at this stage I'd prefer money spent on infrastructure projects via people's QE. Especially projects that can be independently shown to be fiscally positive (such as a house building program) and projects that end up lowering everyone's energy costs. That benefits business in the long run too - lower energy costs plus investment in automation with decent wealth redistribution is a viable long term aim. Transport needs investment in lowering fares on rail and increasing rolling stock. The Tories only seem interested in what benefits capital - which is why overcrowded trains syphoning off money for shareholders is seen as preferable to a decent public transport system. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 17, 2016 Author Share Posted August 17, 2016 (edited) £500 Billion helecopter money given to the banks since 2008. Interest rates down to 0.25% given to the people. Great New Deal. Exactly, "given to the banks". This proposal would put it into individuals' bank accounts and it would be cancelled out by any debt. Personally, I'd prefer it if interest rates were raised and the over-indebted thrown to the wolves. Edited August 17, 2016 by Bruce Banner Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted August 17, 2016 Share Posted August 17, 2016 His suggestion is... print money and give it directly to the population (helicopter money).... but, make it compulsory that, if an individual is in debt, the money must be used to pay off the debt... Could it work? Just another banker bailout. The money will go straight to the banks or the rich. The £ will devalue and the idiots celebrating the "free" money will be much worse off. Could it work....it's f**king criminal theft indirectly. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.