Who got the £375 billion?

Jegersmart

Masomnia wrote: »

The Bank of England was nationalized in the 1940s (44?) by the Labour government at the time, so it is publicly owned.

Pretty much all of the £375 billion has been spent on gilts.

The reason it hasn't caused inflation is because that relies on the banks actually increasing lending, which hasn't happened. The money supply usually increases, but is shrinking at the moment despite QE.

This from wiki (DYOR):

In 1977, the Bank set up a wholly owned subsidiary called Bank of England Nominees Limited, (BOEN), a private limited company, with 2 of its 100 £1 shares issued. According to its Memorandum & Articles of Association, its objectives are:- “To act as Nominee or agent or attorney either solely or jointly with others, for any person or persons, partnership, company, corporation, government, state, organisation, sovereign, province, authority, or public body, or any group or association of them….”

Bank of England Nominees Limited was granted an exemption by Edmund Dell, Secretary of State for Trade, from the disclosure requirements under Section 27(9) of the Companies Act 1976 , because, “it was considered undesirable that the disclosure requirements should apply to certain categories of shareholders.” The Bank of England is also protected by its Royal Charter status, and the Official Secrets Act.

I just want to add that I am not trying to deal in myths and questionables, purely to have a debate on what we know or think we know......

J

JohnRo

It's all just smoke and mirrors, the Bank of England acts as a fence for the transfer of public wealth into private pockets and facilitates the murky dealings of wealthy crooks we know little if anything about.

The Rothschilds, City of London Corporation and HM the Queen are some of those who know exactly what is going on.

Masomnia

Jegersmart wrote: »

Why should they pay interest to another entity if they want to print money?

They're paying interest to borrow money, it just so happens that the gilts are owned by the Bank of England rather than someone else. I don't see the problem.

Jegersmart

Masomnia wrote: »

They're paying interest to borrow money, it just so happens that the gilts are owned by the Bank of England rather than someone else. I don't see the problem.

They (we) are paying interest to an entity that created the "money" out of thin air. Any government should be able to print money as it wishes without us having to pay another entity interest to do so.

Masomnia

Jegersmart wrote: »

They (we) are paying interest to an entity that created the "money" out of thin air. Any government should be able to print money as it wishes without us having to pay another entity interest to do so.

But 'we' own the Bank of England. The government could just print the money and spend it if it wanted, but this limits the risk of inflation and provides a mechanism for it to be removed later.

Jegersmart

Masomnia wrote: »

But 'we' own the Bank of England. The government could just print the money and spend it if it wanted, but this limits the risk of inflation and provides a mechanism for it to be removed later.

What are you talking about? As soon as interest is applied to the newly created money it becomes inflationary at the very start as we have to fund it. Please describe the mechansim for "removing" it later and why interest has to be applied for it to work.

Thanks

J

antrobus

Masomnia wrote: »

The Bank of England was nationalized in the 1940s (44?) by the Labour government at the time, so it is publicly owned.....

Nationalised by the Bank of England Act 1946. There was a war on in 1944; Labour didn't take office until 1945.

antrobus

Jegersmart wrote: »

... Please describe the mechansim for "removing" it later ...
J

You sell gilts.

JohnRo

antrobus wrote: »

You sell gilts.

Any way you slice it QE is the transfer of wealth from those forced to use monopoly money legal tender buying, selling and trading goods and services to those given the new stuff created from thin air.

Can you point to an audited list of what exactly it is the BoE has bought from their retail banking proxies with the hundreds of billions of pounds they've put on the nations tab ?

talexuser

I've followed this thread with great interest and don't know if the whole thing is one huge scam but... I understood project Merlin involved a commitment from the banks to lend out a proportion of the bailout money to keep the economy going (out of recession). We now have government having to set up it's own lending with even more taxpayers money and the figures that the coalition promised at election will be missed by a mile with a pretty unconvincing euro crisis excuse rolled out (how much do we export to Greece?). It just does not look very honest to me with talk of another 10 billion cuts after the next election, and zero real progress in reforming or splitting up the banks and the Vickers report substantially watered down.