Thursday, Nov 05, 2020

Here we go again

BBC News: Bank of England "injects" extra £150bn into economy

Bank of England can create new money electronically and the Bank spends most of this money buying government bonds through a process known as quantitative easing (QE).
QE is sometimes described as "printing money" but in fact, no new physical banknotes are created.
Government bonds are a type of investment where you lend money to the government. In return, it promises to pay back a certain sum of money in the future, as well as interest in the meantime.

Posted by khards @ 11:26 AM (1530 views)
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4 Comments

1. deepak said...

Simply "Bubble Economics" 101

Friday, November 6, 2020 07:26PM Report Comment
 

2. mombers said...

If a counter measure like higher annual property taxes was introduced alongside, this money would not just disappear into the abyss of rising asset prices (mainly land)

Monday, November 9, 2020 08:24AM Report Comment
 

3. deepak said...

@mombers, it will never happen

1) Under Labour Govt, higher house prices was the only way to provide additional (Unearn't) money people with low income.
2) The number of people who are asset rich, due to doing nothing personally and riding the govt policies luck will not have liquid cash to pay for the tax. Think inheritance tax is mostly paid after selling the asset.
3) The govt will lose next election
4) The valuations for tax will be fr lower than the valuation for sale :)

Monday, November 9, 2020 12:42PM Report Comment
 

4. nickb said...

It's buying up the national debt. Why not just print government money directly? why the rigmarole about issuing bonds then buying them back? Is this so that asset holders get a cut, prices of their assets inflated?

Wednesday, November 11, 2020 09:12PM Report Comment
 

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