Quantitative easing

[BrowneIssue]

Watch this and perhaps the trick will become clearer.

Money as Debt

I just did.

We're fooked.

 

[NoddY]

Money has many 'personalities'.

1. One is money collected as tax
2. Another is money released as notes and coins
3. Another is money released as debt
4. And finally money released directly into 'the economy'.

2 & 3 make up the money supply; under normal conditions most money is released this way - especially 3. 4 is 'quantitative easing' or printing money.

The primary purpose of money is to get the little people out of bed in the morning - i.e. a motivator for economic activity. Realise this and you'll understand why you can't print money for taxes. The aim is have all monies 'worked for' i.e. backed by sweat.

The trouble is the price of labour has been unable to match the incredible amount of money released by low interest rates in the last ten years (no. 3). This lead to the house price bubble/hyperinflation. This is a problem.

The solution is deflation (the increasing value of money). However, those with high mortgages have effectively locked in the higher price. If people don't like the solution then don't create the problem!

 

[KentPhilip]

You're right of course, but Labour know what they are doing. After all, Broon was Chancellor for a decade.

Proof, if ever any were needed, that experience doesn't necessarily make you good at your job.
True of our industry too.

 

[VectraMan]

Watch this and perhaps the trick will become clearer.

Money as Debt

Excellent. Uber doomed then.