Many people who think seriously about stuff will already be aware of the phenomenal cost to the UK economy of 4 months lockdown and another three partial lockdown earlier this year and wondering how the nation can possibly endure, both economically and socially, another month of lockdown with possibly more to follow. Well worry not my friends, according to economist and Wall Street Journal contributor Matthew Lynn the Bank of England has the answer, we just print some more money.
As we all lock ourselves in the cupboard under the stairs and England goes back into lockdown today, Chancellor Rishi Sunak announced another injection of £££s tens of billions to support the economy through the Covid-19 crisis (Chapter 99,900?) Surely the money will run out soon, will it not? Well, according to Mr. Lynn, no. So long as the Bank of England can print money fast enough the economy will stay afloat. We will hit a crisis eventually, but not for a long time – and we shouldn’t expect the Bank to rescue us from lockdown by imposing economic sanity on the government and its scientific advisers.
Alongside keeping interest rates at almost zero while fuelling inflation the government is destroying the value of your saving and pensions, driving down the purchasing power of earnings, and undermining the currency. Yet they casually pumped another £150 billion into the economy through another round of ‘quantitative easing’ for the sake of prologing the misery of a few chronically ill people.
Even at the rate Sunak spends, that is a huge sum. In effect, the Bank will be funding the Government’s entire deficit for the year, and it will be doing it with little more than a few keystrokes on Andrew Bailey’s computer. In total, it now plans to print an extra £895 billion to counter the Covid-19 crisis, and no doubt more will be done if necessary. What started out as a one-off £200 billion to deal with the crash of 2008 has now multiplied five-fold, and it probably won’t stop there.
A magic money tree? Perhaps. But as the linked article shows we have been picking the low hanging fruit from that for a long time, since the financial crisis of 2008 in fact. According to Modern Monetary Theory (MMT) we can carry on creating fiat money in this way for a long time. The Federal Reserve, the Bank of Japan, and the European Central Bank are printing even more than The Bank Of England. Keynesean theorists will tell you we are only borrowing from ourselves.
“Bugger me with the blunt end of a ragman’s trumpet,” you might well exclaim, why do we all bother going to work and paying our taxes when it’s possible to finance our lives by borrowing money from ourselves? I had no idea that we could spend our lives goofing around and the Bank of England would pay us for it.
I wonder if the author, who writes for one of the world’s leading economic journals remember, is aware that “printing money” does not actually mean topping up the ink reservoirs and staring the printing presses. Central banks create money by issuing bonds which bear a fixed interest rate or coupon value and are sold at auction to the highest bidder. The ‘yield’ is the true interest rate. If the bonds sell for more than the face value the yield is less that the fixed interest rate, if they sell for less then the yield is higher.
When a central bank floods the market with bonds (as is happening with most central banks now,) the yield on those bonds crashes,
No Mr Lynn, Britain cannot afford another lockdown, this government is mortgaging the nation’s future to pay for the incompetence and idiocy of its scientific advisers.Long term the result can only be catastrophic,
Negative Interest Rates – Final Nail In The Coffin Of Neoliberalism? Negative interest rates, in plain terms a situation in which we pay bankers for holding our money, are the latest ruse of politicians and economists to make uis start spending our investments and savings, thus kickstarting the global economy thy have screwed up.
The age of financial privacy is over
Yes you read that right. The fascist regime in the USA has usurped to itself the right to raid bank accoutns anywhere is the world. At the moment they are only stealing money by way of tax demands from people who were born on US soil even if those people have not lived in the USA since childhood and have never be employed by a US business.
Plans to let the taxman take cash out of people’s bank accounts without their permission were condemned by MPs after Rebecca Benneyworth, of the Institute of Chartered Accountants, warned the department is ‘shooting itself in the foot.’ She told the ICAEW conference : ‘Public trust in HMRC would be eroded very quickly if cases come to light where funds have been incorrectly removed. ‘HMRC cannot afford to have public opinion turn against the tax system and those charged with administering it.’Accountants have warned HMRC cannot be trusted …
Taxes Will Rise If Government Do Not Raid Bank Accounts Taxes will have to rise unless officials are given new powers to raid people’s bank accounts, David Cameron has said.
The Treasury select committee warned that allowing HM Revenue and Customs to remove cash from bank accounts without court orders is “very concerning” because of its history of mistakes.
The committee said that taxpayers could suffer “serious detriment” if officials are able, either by mistake or through an “abuse” of power, to take money from people who have done no wrong.
A look at how the fractional reserve banking system works and how it brought the global economy and many people’s personal finances close to collapse. It’s really all about pulling magic money out of fresh air.
Investors Ignore Triple Dip Regession As Stock Market Hits Four Year High
While You Pay Taxes, the Rich Hide Their Money In This City To Avoid Paying Theirs
Michaela Whitton April 14th, 2016 (ANTIMEDIA) — The City of London has long been known as a tax bolt-hole, facilitating money laundering, welcoming dirty money, and turning a blind eye to the investment of dodgy foreign capital. Long before the Panama Papers leak and its resulting embarrassment, stampedes to buy property in the British …
Currency Wars: Venezuela Is About to Ditch the Dollar in Major Blow to US:
In what amounts to the biggest blow yet to the U.S. economy, Venezuelan President Nicolas Maduro said last week that his country will be looking to disengage itself from dependence on the U.S. dollar next week, Reuters reports.
In our omnibus webpage, Currency Wars, we have fully reported on the currency war being waged against the US economy by a group of nations led by Russia, China and Iran, with the aaim of replacing the $US as global reserve currency.
Macron and Merkel Agree Eurozone Tax Integration
Hausfrau Volksfuhrer Merkel and Grandmothertrucker Macron France and Germany have agreed to introduce a single Eurozone budget and shared emergency funds for the bloc, as the brussels bureaucrats and globalist puppet leaders try to push the European Union (EU) towards deeper, globalist integration after the Brexit vote
… yesterday we observed a surprising development involving Deutsche Bank, namely the bank’s decision to quietly liquidate some of its shipping loans. Reuters reported, “Deutsche Bank is looking to sell at least $1 billion of shipping loans [a market sector] whose lenders face closer scrutiny from the European Central Bank.
The Demise Of Dollar Hegemony: Russia Breaks Wall Streets’s Oil-Price Monopoly
Significant moves in the global chess game have just rendered the huffing and puffing of warmonger Obama meaningless and will break Wall Street’s monopoly in controlling oil markets. The move is part of Vladimir Putin’s long-term strategy of decoupling Russia’s economy and especially its very significant export of oil, from the US dollar, in effect …
The Demise Of Dollar Hegemony: Russia Breaks Wall Streets’s Oil-Price Monopoly In a move that went almost completely unreported in mainstream media, Russia has recently opened a market for the trading of physical and ‘paper’ oil (futures) in Moscow in Roubles. This is the most blatant challenge yet to the domination of the US dollar in world trade.Greenpeace stunt backfires. Exposes Green Energy Scam!It’s always great to mock the Watermelon when they shoot themselves in the foot but this exapmple of the self interest that underpins their climate science and green energy scams is classic.
Anti Austerity Protests Bring European Capitals To A Standstill Angry protests have left many European capitals in chaos as millions of workers joined strikes against austerity measures they claim have made their national economies worse. Trade unions in Spain, Greece, Portugal and Italy staged a series of demonstrations throughout the continent on the …
Government Powerless Against a New Wvve Of Immigration The government is powerless to stop tens of thousands new migrants heading to Britain after a new EU borders shake-up, Theresa May has admitted. The Home Secretary yesterday warned the Government is legally unable to block Romanian and Bulgarian citizens from coming to the UK under an expansion of …
Poverty tycoons who make themselves millionaires from taxpayer-funded foreign aid budgetIn responce to questions about Britin’s overseas aid budget,David Cameron has said at the United Nations that rather than cutting aid to developing nations in these austere times UK taxpayers should be happy it is being increased. Meanwhile with her own millions safely tied up in trusts Hillary Clinton demands global wealth taxes to raise money for helping the disadvantaged.
The Folly Of Trying To Inflate Away Debt
As the debt crisis grinds on and the creit crunch mutates into the credit famine the clueless politicians and even more clueless economists and academics who advise them can only think of one course of action. That is to inflate away their debt problem by devaluing currency to the extent at whic a bag of potatoes or wheat grain costs $£€ 1 trillion. Inflation is the cruellest tax, destroying the savings and pensions of sensible people and rewarding irresponsibility.