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A Neat Way to Get Rid of the UK's National Debt?
Comments
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Graham_Devon wrote: »It's now being reported that this has left a £48bn black hole.
http://www.telegraph.co.uk/finance/economics/9684452/Treasury-leaves-Bank-of-England-with-48bn-black-hole.html
Essentially, this means the treasury (us) may have to make payments to the BOE to cover the losses. Something admitted by George Osbourne last week. But at that point, the scale was unknown.
Sir Mervyn has stated all this is a lot of fuss about nothing!
Not surprising that by creating this much money there would be an associated sizable cost at some point.
This is in addition to the cost we all paying day to day as stuff is more expensive.
Sir Merv doesn't give two hoots he is off with his mega bucks pension to dribble somewhere."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Graham_Devon wrote: »
Essentially, this means the treasury (us) may have to make payments to the BOE to cover the losses. Something admitted by George Osbourne last week. But at that point, the scale was unknown.
Sir Mervyn has stated all this is a lot of fuss about nothing!
Well for once surely Sir Mervyn is right on that basis because since the Bank is owned by the government it's moving its money from one pocket to another isn't it ?
Whether QE overall was a good thing is another matter. But the people complaining about it now may well be in large part the same people who would have screamed blue murder if nothing had been done to attempt to stimulate the economy. There's so many political agenda in all this that it's difficult to take anything on face value.
It makes me laugh that the article talks about the Bank's "independence". If it was truly independent it would have stuck to its brief to keep inflation at no more than 2% and QE would not have happened in the first place.No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
I read this and thought of this thread
New Year messages from Japan
http://www.bbc.co.uk/news/business-20764675Turn your face to the sun and the shadows fall behind you.0 -
grizzly1911 wrote: »Sir Merv doesn't give two hoots he is off with his mega bucks pension to dribble somewhere.
Hence why capitalism works better then this, people generally care much more about their own hard work and savings then some guy being lent on by government to balance their budgets.
He wont be here, he wont suffer his own mistakes, neither will the next guy
capitalism = when the common people control worth and use of capital or money not the state0 -
zygurat789 wrote: »Since the BoE is not benefitting from the £350bn could they not be persuaded to give that back to the treasury and reduce the national debt further.
No, that £350bn is debt.
J0 -
If the BOE gives back absolutely everything to the treasury, we have copied Zimbabwe unless I missed something. We are going that way anyway probably but theres no gain from doing this for either side or us
USA fiscal fiasco 'avoiding cliff' - http://www.ft.com/cms/s/0/d478bd92-4872-11e2-a6b3-00144feab49a.html#axzz2FPUxrv00
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indeed so
if the 'money' is to be repaid then it is debt; if it is not to be repaid then we simply printed more money.
we won't know which it is until it's paid back or not
at the moment it's not.0 -
indeed so
if the 'money' is to be repaid then it is debt; if it is not to be repaid then we simply printed more money.
we won't know which it is until it's paid back or not
at the moment it's not.
They are gilts so they are interest bearing, so they are debt. Whether someone writes off the debt is another matter but that would seem unlikely. The money the BOE printed to buy these have now been deposited in the banking system, and likely they will be creating more through debt.
We have discussed this before.
J0
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