Friday, 6 March 2009

I don't understand


The Bank of England is to create £75bn of new money in an attempt to revive lending and the battered economy.

If this was going to work, everyone would be fucking doing it. It's never worked before, why the fuck do you think it's going to work now? What is £75bn, anyway? Pfft ... a mere bagatelle!

Where does the BBC think the money is magically going to come from? Out of Gorgon's foetid ringmeat? It's not "new money", you cuntbuggering fuckmonkeys, it's the dilution of whatever is in our fucking pockets.



The Last Of The Few said...

Quantative Easing its called.....ha

Go check out Japan. They did this in the 90's when they had a bit of a cash flow issue. Took 18 months to work but then guess what.............over 15% inflation.

Great what we have is worth fuck all 1 min then we cant afford it the next min.

Uk twinned with Harare

Great WV by the way....woommuff hahaha

an ex-apprentice said...

Of course it's new money. Hot off the presses. Untouched by human or clown hands.

Fuck me, Oxo, I do wonder about you sometimes.

Steve Tierney said...

You are exactly right, of course. I called it a 'Tax On Oxygen' in my blog, because its stealthy, inescapable and affects everybody.

It's also a dilution of all the money we owe to other countries. I bet they'll be pleased to find out we've welched on the deal. I'm sure they'll rush to lend us money and buy the pound now.

AntiCitizenOne said...

If you hear the phrase Gilt buyers Strike on the TV, immediately secure your shotgun shells and start wearing your class 3 bullet proof jacket 'cos it will be that bad.

Mark Wadsworth said...

Fair summary, but it only has any effect on anything whatsoever if the government, oops, 'the entirely independent BoE', overpays for whatever it's buying. Which it will do, of course.

Rob Farrington said...

Maybe it's a miracle, and it WILL be real money coming out of his arse.

Hey, he has met the Obamessiah, you know. The Browns now own DVDs and toy helicopters that have been touched by The One, and which retain his divine aura. Remember...hope! Change! Yes we can!!!

Oldrightie said...
This comment has been removed by the author.
Oldrightie said...

It's the latest PFI initiative.
P is for Piss
F is for
I is for ignorant.
Labour and Snotty's epitaph?

nbc said...

Quantative Easing, an economic goatse

Anonymous said...

Why not just let everyone print the money they need?

It would solve a lot of problems. No one would be short of credit or in debt. Consumer spending would soar.

Resorts and luxury hotels would be full and airlines would again make profits. The manufacturers of executive jets jets would make even more.

There would be no loan defaults. Bankers would not be needed and they wouldn't get a bonus. Or need one.

Others may see some defect with my suggestion. I don't, whenever the economics instructor decided to discuss defects I left the room, for I intended to run my own hedge fund.

Idle Pen Pusher said...

Not true, Mark. The extra money will be additional demand for the assets they're buying which will increase the equilibrium price for them. Which, in turn, will increase the equilibrium prices for other substitutes and any other prices affected by an income effect generated by any of the aforementioned.

Idle Pen Pusher

Idle Pen Pusher said...

(ie, even if they pay the market price for them. However, as you said, they won't...)

Idle Pen Pusher

Anonymous said...

They're selling IOU's (gilts). so it will be new "money", as long as that means taking money from the future. It's where that money is going that I'm more interested in - if Britain is now a service economy then we need to get people spending, instead of plunging it into banks. Japan was frequently criticised for NOT letting its banks go to the wall!

not an economist said...

When this was announced the BBC news report I saw on News 24 was with a Labour Peer (some Asian guy - sorry I can't remember his name).

The Labour peer was okay in that he explained things clearly enough. I have no issue with him. But the BBC interviewer was just ... crap. He was basically there to get the Labour rep to peddle the ofical govt line nad nothing more. No critical analysis or challenging of the govt's policy was forthcoming. Just "what is the govt going to do, please explain simply for the audience and will it work".

Sorry but instinct tells me that if this was a more market orientated govt that stressed the cause of the recession in terms of the monetary expansion that went on across the world in the last last ten years and the need now for the recession to bite and thereby force thru a reallocation of resources so as to balance consumer preferences with the distribution of resources across the economy then I reckon the BBC would be a hell of a lot more critical of the govt's position challenging its every policy pronouncment and action.

Tim Carpenter said...


No, they are NOT selling Gilts, but buying them back with fiat, i.e. "printed money", but in this case, some chimp tappng in 75,000,000,000 into an Excel cell.