Quantitative Easing

Or printing more money to you and me.

So the Bank of England is printing another £50,000,000,000 and giving it to the banks in exchange for government backed bonds.

In the vague hope that the banks will start lending to businesses and re start the economy.

What on earth makes them think that the banks will do that? They haven't with the last lot of newly printed money, or the lot before that.

They have however carried on paying ridiculous salaries and bonuses.

If they are going to print money, why not just give it straight to industry, why make the middle men even richer than they already are. We know if they do lend this money, which they have effectively got for free, they will still charge businesses an extortionate interest rate for it.

 

Then:



Now:

 

now that is the difference between the Uk and the other countries in the EU ....

the other countries have to 'borrow' and beg for the money .... they dont have printing presses .... and then pay high interest rates

 

They could actually use it to lower taxes, VAT maybe, but I doubt that would amount to more than half of one percent drop.
But I must admit giving it to the banks is a bit like throwing good money after bad.

If the government dont actually have control over the banks, as we know they dont, it seems a very stupid move.
What other private industry has money thrown at them by government?

 

Or put it into the premium bonds pool, at the same time getting rid of the million pound jackpot & lowering the max prize to £5,000. Thereby putting a wedge in a lot more peoples pockets each month rather than making 1 person a millionaire each month.

Same with the tax on the stupid national lottery. Bring the prize fund back down to earth.

 

The UK is divided up into 124 postal areas. They're not all the same size, but have roughly similar population counts in each.

50,000,000,000 / 124 = about £403 Million.

I'm pretty sure that if each area was given £403 million as a grant for redevelopment work in run down neighbourhoods, community projects, small business startup grants etc, then I'm pretty sure the return on investment would be higher and quicker than simply giving it to the Guild of Thieves.

Or another thing to consider, if such money was spent on worthwhile tourism related projects, then just maybe we could get some money coming back in from abroad.

 

The National Lottery was a fix from day one.

 

I'm sorry to lower the tone, but 'quantitative easing' always makes my mind run to ExLax. I can't help thinking that what we actually need is a double dose of Imodium.

The gospel according to the renowned economist, Claralou.

 

Or as the reporter on BBC in the morning programme puts it, Quanitaaaaaatiiive easing.

 

If the bank of England can make £50 billion on a whim, how come Britain isn't the richest nation in the world? If I could make £50 billion on a whim, I'd have a big yacht, and a ferrari, and I'd hire a crew of very fit ladies to drive my yacht for me, and I'd have a private jet and my own island somewhere hot, and I'd recruit an army to defend it and I'd declare independence.

 

Was it Robert Peston, Pete? His delivery - sometimesveryfastandruntogether f o l l o w e d ....... b y ........ s t r a n g e l y ......... s l o w.........p h r a s e s gets on my nerves, to the extent that I can never be bothered to follow what he's saying.

 

Lets all phone up our creditors tomorrow & say in view of the new facts, that they've just been given a wodge for nothing, we'd like to re negotiate our interest rates down from 19% apr to 0.5% above current bank of england base rate.

Not bad grammar, just don't see why I should use capital letters for institutions I have no respect for anymore.

 

No its not him Clare, although I know he does have a strange way of talking, I think maybe he once had a stammer, but might be wrong.

This is female and on the breakfast show.