mjmooney Posted October 7, 2011 VT Supporter Share Posted October 7, 2011 From the Darts thread: Board Two Mervyn King v Mark Walsh Link to comment Share on other sites More sharing options...
TheDon Posted October 7, 2011 Share Posted October 7, 2011 So, here's an idea - instead of giving all this new money to the banks, give everybody in the country a thousand quid, and instruct them to spend it. I'm up for it. If all the money spent on QE was instead distributed to the population, we'd all have had over 4 grand. Which is going to improve the economy more? Relying on banks to trickle down the money all the way to the bottom, or giving everyone 4k to blow on whatever they want? I'm thinking the 4k would myself, rather than relying on the people that created the problem to solve it. Link to comment Share on other sites More sharing options...
mjmooney Posted October 7, 2011 VT Supporter Share Posted October 7, 2011 I'd be willing to accept restrictions, e.g. can only be spent on British goods, etc. Link to comment Share on other sites More sharing options...
Awol Posted October 7, 2011 Share Posted October 7, 2011 No because its BoE money - not the Governments. Yep, Governments are consumers rather than producers of wealth. Right now QE will devalue the £ in you bank account, punish savers and the prudent, crucify pensioners, increase inflation and the price of food and fuel. It will however ensure that bankers and senior public sector emloyees continue to live in the manner to which they've become accustomed - fat salaries bonuses, pensions etc. The one thing that can start to unravel this mess imo is to do the opposite of what we have been doing since 2008 and let the failures (i.e. the banks), fail. Yes it will be horrendous in the short term but it's the only way to lance the boil and get the poisonous toxic banking debt out of the financial system. The reckoning is coming either way and at least this way it's done and we can start to rebuild on a sustainable basis. Link to comment Share on other sites More sharing options...
CI Posted October 7, 2011 Share Posted October 7, 2011 I can see a flaw, British Wine ? Link to comment Share on other sites More sharing options...
Awol Posted October 7, 2011 Share Posted October 7, 2011 I'd be willing to accept restrictions, e.g. can only be spent on British goods, etc. Protectionism is in the post anyway, imo. Link to comment Share on other sites More sharing options...
mjmooney Posted October 7, 2011 VT Supporter Share Posted October 7, 2011 I can see a flaw, British Wine ?Meh. Buy English ale and Scotch whisky. Link to comment Share on other sites More sharing options...
LondonLax Posted October 7, 2011 Share Posted October 7, 2011 OK, the BoE can make more money out of nothing (I thought that this is what causes rampant inflation, but we'll let that pass). As I understand it, the idea is to boost the economy - Cameron had to change his speech about paying off the credit cards, because business wants us all to keep spending. So, here's an idea - instead of giving all this new money to the banks, give everybody in the country a thousand quid, and instruct them to spend it. I'm up for it. The Australian government did pretty much that back in 2008 during the credit crunch. They gave $1000 to every pensioner or low income person with a dependant child in the country. As well as $14k for anyone trying to buy their first house. Link to comment Share on other sites More sharing options...
theunderstudy Posted October 7, 2011 Share Posted October 7, 2011 I can see a flaw, British Wine ?Meh. Buy English ale and Scotch whisky. Exactly. Some people despise wine. Myself included, and I love a good ale and a fine single malt. Link to comment Share on other sites More sharing options...
Straggler Posted October 7, 2011 Share Posted October 7, 2011 So, here's an idea - instead of giving all this new money to the banks, give everybody in the country a thousand quid, and instruct them to spend it. I'm up for it. If all the money spent on QE was instead distributed to the population, we'd all have had over 4 grand. Which is going to improve the economy more? Relying on banks to trickle down the money all the way to the bottom, or giving everyone 4k to blow on whatever they want? I'm thinking the 4k would myself, rather than relying on the people that created the problem to solve it. Probably a fair bit more than 4K. they are not going to give any money to the kids so anyone under the age of 16 can be counted out. You also have to be able to track who the money is going to, so you will need to be one or more of the following Tax payer On the electoral register Claiming benefits OAP A real finger in the air figure / complete guess is that about 35 - 40 million would actually get the cash. Split 75 Billion 35 million ways and you have more 0's than my calculator can handle, but we all get a nice wedge and are told to go out and spend. As a good patriot I will happily employ the local plumber / builder / plasterer / kitchen fitter and get a new kitchen in. I will then employ a firm from Germany to come in and put all the stuff in correctly Link to comment Share on other sites More sharing options...
CI Posted October 7, 2011 Share Posted October 7, 2011 £2,142.86p each (based on handouts to 35 M) Straight down the casino and on Black Link to comment Share on other sites More sharing options...
TheDon Posted October 7, 2011 Share Posted October 7, 2011 Split 75 Billion 35 million ways Remember they've already given out 200bn previously, so you could have had a share of 275bn. That's nearly 8 grand! Link to comment Share on other sites More sharing options...
wiganvillain Posted October 7, 2011 Share Posted October 7, 2011 £2,142.86p each (based on handouts to 35 M) Straight down the casino and on Black Which is exactly what the bankers who actually get the £75Bn will do anyway Link to comment Share on other sites More sharing options...
CI Posted October 7, 2011 Share Posted October 7, 2011 Exactly, my logic, if you can't beat them join them Link to comment Share on other sites More sharing options...
peterms Posted October 7, 2011 Share Posted October 7, 2011 No because its BoE money - not the Governments.Yep, Governments are consumers rather than producers of wealth. Governments, like private companies, can either produce wealth, consume it, or both. If they had taken that £75bn and spent it on infrastructure, they would have created quite a bit of wealth, creating employment where there is none, allowing those employed to spend their wages on things which create further employment. If instead it seeps through into gambling on commodity prices, as the former hedge fund manager I quoted earlier says it did before, then it won't create wealth but will instead inflate prices and effect a transfer of resources from some people to others. Governments can create both wealth, and the conditions necessary for the creation of wealth by others - a legal system, defence, education, health provision. The idea that they just suck up resources created out of nothing by the hard-working private sector is no more than self-serving propaganda served up by the likes of the Institute of Directors. Link to comment Share on other sites More sharing options...
Awol Posted October 7, 2011 Share Posted October 7, 2011 Peter, I meant in the very literal sense that the Government cannot create it - wealth. They can use the wealth 'created' by the BoE for various ends including infrastructure investment etc (the high speed rail project falls under this, yes?) but it's not the same thing, imo. I didn't see Osborne's speech but what's the story with the Credit Easing scheme? It seems like a pretty good idea on face value. Link to comment Share on other sites More sharing options...
Awol Posted October 7, 2011 Share Posted October 7, 2011 Speaking of Greece, I read an article yesterday in a Swedish newspaper that the Greek government, despite the attempts at austerity, have just ordered 400 new tanks from the US. From here (It's in Swedish). Sounds ominously like they are getting ready for the next stage of the crisis! Turns out they are a gift from the US, the Bubbles ony have to pay for the shipping. Assuming that they can afford the petrol I'd guess that these are the new transport fleet for Greek tax collectors - or to keep out German bailiffs.. Link to comment Share on other sites More sharing options...
mjmooney Posted October 7, 2011 VT Supporter Share Posted October 7, 2011 I can see a flaw, British Wine ?Meh. Buy English ale and Scotch whisky. Exactly. Some people despise wine. Myself included, and I love a good ale and a fine single malt.Don't lump me in with that. I love wine, especially French wine. And some British wine is actually OK - only problem is, it's massively overpriced. But beer and Scotch is what we do best. Link to comment Share on other sites More sharing options...
CI Posted October 7, 2011 Share Posted October 7, 2011 How long before the US takes control of Greece? Link to comment Share on other sites More sharing options...
mjmooney Posted October 7, 2011 VT Supporter Share Posted October 7, 2011 How long before the US takes control of Greece?How long before China takes control of the US? Link to comment Share on other sites More sharing options...
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