Fox News - Economic Acopalypse

tomstickland

Rochdale_Pioneers wrote: »

Not yet. We haven't printed a single additional pound. Yet.

According to John Redwood, who reads the Bank of England reports (online somewhere) we have.

Cannon_Fodder

? http://www.bankofengland.co.uk/statistics/statistics.htm

? http://www.bankofengland.co.uk/statistics/m4/2008/dec/m4SA.GIF

purch

The funding for this will come from the sale of Treasury Bills, so in this sense the purchases will not derive from the 'printing of money'

Sorry to repeat myself !!!!!

Sir_Humphrey

tomstickland wrote: »

According to John Redwood, who reads the Bank of England reports (online somewhere) we have.

Another nutter. This is the opinion of an Oxford Union debator who I used to know who had to debate alongside Redwood. He spent the whole debate talking to himself under his breath. I presume this Apocalypse will be similar to the one threatened by Saddam Hussein's 'WMDs' (according to Fox News).

Cannon_Fodder

I did not realise that Treasury Bills had zero impact on money supply.

purch

I did not realise that Treasury Bills had zero impact on money supply

See, if you have an open mind, you can learn lots of new stuff !!!

Cannon_Fodder

What about?

M3, also called broad money, includes M2, plus assets in large time deposits, eurodollars, and institution-only money market funds. The biggest group, L, includes M3, plus assets such as private holdings of US savings bonds, short-term US Treasury bills, and commercial paper.

purch

Well done. :T

You have learnt something else today as well.

The Special Asset Purchase Facility (or whatever it's called) that the Bank will start on Monday, allows them to purchase Corporate Bonds, Commercial Paper, Syndicated Loans, a range of asset-backed securities as well as paper issued under the Government's existing guarantee scheme, which was introduced last year. The asset purchases will be restricted to high grade instruments and the amount available will be £50 billy's.

The funding for this will come from the sale of Treasury Bills, so in this sense the purchases will not derive from the 'printing of money'

Sorry to repeat myself again, but as you can see this relates to activities being undertaken by the BANK in the UK Money Market

Now, nip off and do a little more research and you might learn some some interesting stuff about how it all works.

It'll help you not to be so paranoid, and so easily led by scaremongering rubbish spouted my the media.

Cannon_Fodder

So, to sum up.

Although a rubbish media outlet, Fox are right in the fundamentals - the US is printing money, as well as using T-bills.

In the UK, there are Treasury Bill plans afoot, which although technically not "printing" money, will likely increase money supply.

?


"scaremongering rubbish spouted my the media" - but Fox were right, Rochdale said they are increasing M0, and no-one contradicted that...it may have been theatrical, but was it scaremongering?


The problem for Joe Public is that every media outlet has some bias or other, what we need from the Forum is reasoned facts to be put against any articles posted. Saying Fox are a joke, but not that they are factually right or wrong doesn't really help anyone's understanding.

Sir_Humphrey

This is all a little arcane. This is an open market operation right? If so, nothing that unusual? Friday afternoon, so my brain is not quite working.