Mervyn King - £75Billion QE2 - 6/10/2011

Stephanie Flanders BBC economics editor interviews Mervyn King the governer of the Bank of England. (The UK's Ben Bernanke).
Quantitative Easing or QE is money creation either by printing notes or simply digits entered on the recipients computer. QE is interest bearing debt payable by the public to the Bank of England. Money creation need not be interest bearing and should not be, as the money belongs to the public in the first place. QE1 was £200Billion. QE2 is £75Billion, that is the equivalent of over £1000 for every man, woman and child in the UK. The QE money is in addition to the £919Billion that the U.S. Federal reserve lent the Bank of England shortly after the beginning of the credit crisis, though it never was a liquidity problem, but a bank insolvency issue.
The UKs ongoing monthly budget deficit is paid for with created money, it is a constant source of inflation for as long as the deficit remains ie Mervyn's predictions of lowering inflation are delusional at best. Yesterday reported inflation rose to 5.2%.
On the contrary to what Mervyn suggests in the interview wealth is a productive capacity, not asset bubbles fueled by the inflationary effects of money creation.
Giving the banks more money to continue the same global free market process that has destroyed our manufacturing base is insanity. Mervyn King is supporting the making of the largest global collapse in human history. He is confidently acting on a delusion that in a few years time together with the immoral actions of other leaders will cause death and misery for many families. The only way to avoid this is to have a controlled restructuring of the economy by people who know what they are doing. For our leaders to maintain confidence in the existing system is doomed.
Unfortunately when put to the test Mervyn will dig in and confidently persist with his misunderstanding, finding no reason within his delusion to resign or change his ways.
He will trust only in himself, his delusion and his paid job, as he has always done.

Category:

News & Politics

Tags:

• Mervyn
• King
• Quantitative
• Easing
• Money
• Printing
• BBC
• Stephanie
• Flanders
• Economy
• Bank
• of
• England
• Jobs

[belfasta]

THIS GUY IS A LUNATIC HE SAYS INFLATION WILL FALL IN 2012 AS OIL PRICES STABILISE. ALL FORECASTS THAT ARE AVAILABLE SAY OIL COULD REACH $200 BARREL IN 2012 HE IS CRAZY OR JUST A LIAR

[antitheistpansy]

@belfasta It is highly probable that the first signs of Peak oil supply pressures could be upon us in 6 to 9 months time with falling strategic reserves. Once the production decline starts, it does not stop. High inflation will accompany the rising oil price, both because of the supply decline and the money creation.

[conradvfr750]

The £75 Billion will not be injected "Directly" into the economy and only 8% of the money created by Banks as deposits when generating Loans, will go into Productive Investment. The other 92% will go into non-productive investments, such as the Property Market. Some of the £75 Billion will not even be used to bolster the economy as some of it will be held by the Banks to improve their Capital Reserves.

[antitheistpansy]

@conradvfr750 Thankyou for your comment. Fractional reserve banking will multiply the £75 Billion to over £1 trillion. The murderous ponzi scheme continues unabated.

[conradvfr750]

To learn more about Money and who creates over 97% of it (it's not the Bank of England) visit the PositiveMoney website. They are campaigning for Government Created moeny that will solve the UK debt crisis. Also visit the New Economics Foundation.

Bill Still in America is campaigning for similar reforms. Unfortunately, the Banks are determined to keep people in the Dark about how the proposals would work and solve our National Debt problems. So don;t expect to hear about it on the BBC.

[conradvfr750]

There was a rare glimpse into how little Staphanie Flanders knows about how money is created when she appeared on the 10 O'clock News on the BBC.

“The way quantitative easing works is the bank of England creates a lot of money at the push of a button – the way only the Bank of England can – and then to get it out into the economy, they go out and spend it.”

Has Miss Flanders heard the term "Fractional Reserve Lending" ?