What would happen if the money printed for quantitative easing was given to the people instead of the banks?Obviously this would be much better as the population both need and deserve it and the banks definitely don't, but I'm curious about what other people think would happen. QE is a scam to transfer wealth from the people to the 1%, this sort of QE would work in the opposite direction. | |
This is exactly the sort of question which deserves a good answer - when there is a problem in the economy, such as low growth, the best way out is to spend our way out.
Quantative easing did nothing except hand over vast sums of printed money by the BofE to the Banks who then just sat on it doing nothing. Result = nothing happened.
Your idea of simply giving the money directly to the people is a very good idea. What does the average citizen do when he/she suddenly finds extra cash in their pay cheque or on deposit at the bank? They go out and spend and what is the result of all that spending? A big boost to the economy.
I've been up to the West End with my partner to do our Christmas Shopping - I noticed from a life time of experience in such as Oxford Street that although there are lots of people there, very crowded, they were not spending any money. When people spend they have a clutch of bags in each hand. We did not see any of that. All we purchased was some socks and hankies - think in all we spent less than £20. On a normal Christmas Lights trip we'd easily spend in the region of from £500 on up. Not this time because we know that bad times lay ahead and thus we are hanging on to our money.
George Osborne is not exactly an inspiration either. He looks more glum than Mister Scrooge every time we see him on the Telly.
As for the BofE it's boss keeps telling us that interest rates will go on up. Yeah but, no but when? Because millions of us pensioners have invested heavily in Income Bonds with the Treasury on the understanding that our money would be 'safe', which indeed it is. No mention of it being boring, slow and dull, which is what's happening right now with their miserable Scrooge interest rate of .05% - I mean, it's not even a number, is it?
Time has come to get shot of Osborne and replace him with a stuffed clown who wobbles backwards and forwards making crude laughing noises every time someone puts a penny in the slot.
UK is going down the pan fast - we need to spend, not on HS2 which few of us actually want, no, but on something really expensive and exciting.
I know exactly what the people want, in terms of railways and it's not a plastic train racing through at 200mph.
This is what the people want and love.
http://youtube.com/watch?v=lInAcJV5q...
Why not build a whole fleet of these magnificent engines and have them roaring up and down the country packed full of people going about spending like mad with extra cash printed for them by the BoE.
Okay so I'm a mild risk taker. It's our money, time we had a damn good spend.
Edit: a pal of mine said that if we started to pay off the national debt, it would take us 400 years. I told him I have no plans to live that long - look a total wreck anyway already.
London UK 261113.1321GMT
Er....it isn't "printed", it is issued as additional Treasury Bills (which have a future Interest payment obligation), and those Bills are SOLD for cash on the open market.
Inflation? WHAT inflation?
http://data.bls.gov/pdq/SurveyOutputServ...
Prices have been FALLING on many items, not rising! Deflation is a FAR greater threat than inflation, because it would require your wages (or pocket money?) to be reduced to maintain parity and avoid a spiraling down of wages...
http://businessinsider.com/goods-pri...
And may I point out it is being done by the very person who claims those 1% should be paying more such a lie from the man so many believed in because they liked his words.
because it would send inflation through the roof
if you put money into the pockets of the masses all that will happen is the shop keepers, the pub land lords, the milkmen and women will just put up there prices up and the money will be sucked up in no time
85 billion a month, there would be a lot of happy people, but would put us in an official depression as opposed to the unofficial one we are now in.
A great surplus again, birds singing and people dancing! Could you make it rain now please?
