UK's economic problems solved

  Algerian peter ™ 09 Nov 12
Locked

Just lend the Bank of England a few hundred billion and claim the interest.

Lent £350 billion,for quantitative easing, treasury gets £35 billion in interest. Just lend them more.

http://news.sky.com/story/1009436/treasury-gets-35bn-windfall-from-qe-interest

Can I become chancelor of the exchequer?

  Forum Editor 09 Nov 12

This is just money going round and round. It does nobody any harm.

  Quickbeam 10 Nov 12

'It does nobody any harm.'

Nor until the money go round stalls, then it's a tulips from Amsterdam crash.

  robgf 10 Nov 12

It doesn't do savers, or anyone with a pension any favours, as it suppresses interest rates, reducing possible returns.

I do worry about the long term affects of theses short term fixes. If you increase the money supply, you must devalue the assets of everyone in the country. It's parasitic, rather like short term stock traders. Taking value, while providing little or nothing in return. Do it enough times and the people providing services, or manufacturing cant sustain the drain and everything will come tumbling down.

  woodchip 10 Nov 12

"£35 billion" I Don't call that going round and round, Somebody as got to pick up the bill. That being the Tax Payer

  lotvic 10 Nov 12

Isn't that similar to how a Ponzi scheme works?

  woodchip 10 Nov 12

Where do you think Banks get there loot from? They only pay out when there arms are twisted. It's such as share Holders and the above where Current account interest goes. instead of them paying the account holders on what they keep in there bank. Banks was Bailed out by the Taxpayer in the first place, they being too greedy lending Mortgages to those who could not afford it among other things, Selling PPI without asking people. It's only the Gov that's picked up on that and making them pay it back

  woodchip 10 Nov 12

PS the era I was brought up in, I was told if you could not afford it, it should be left on the Shelve, And if you had to start checking if you could afford it the answer was you could not

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