Reply to: The Bank of England "prints" money

[MPwannadecentincome]

I just agreed a new contract at 20% higher than anything else I have right now, in $USD, so as far as I'm concerned... DIVE, POUND, DIVE!!!

paid in EUR's

i'll just sit back with my weissbeir and watch the pound fall down down down

keep up the exports!

[chef]

paid in EUR's

i'll just sit back with my weissbeir and watch the pound fall down down down

[oracleslave]

Yes, and the reason is that debt has to be borrowed with interest, and that is a deterrent to more and more debt. Once you start creating money you are heading down a very dangerous road like Zimbabwe, but this HMG obviously do not care about future consequences, only short-term votes.

Some Zimbabweans are doing just fine

http://www.timesonline.co.uk/tol/new...cle5734148.ece

[Cyberman]

Mmmmmmmmm, Errrrrr. No.

Yes, and the reason is that debt has to be borrowed with interest, and that is a deterrent to more and more debt. Once you start creating money you are heading down a very dangerous road like Zimbabwe, but this HMG obviously do not care about future consequences, only short-term votes.

[HairyArsedBloke]

They should have cut public spending years ago. That's one reason we are in such a mess. Still better to issue debt than increase the money supply and cause hyper-inflation

Mmmmmmmmm, Errrrrr. No.

[d000hg]

I just agreed a new contract at 20% higher than anything else I have right now, in $USD, so as far as I'm concerned... DIVE, POUND, DIVE!!!

[Cyberman]

So long as they cut public spending as well otherwise they would have to issue debt. If they didn't do that then they might find that they only people left to borrow from would be the Bank of England and they get their money by ......

They should have cut public spending years ago. That's one reason we are in such a mess. Still better to issue debt than increase the money supply and cause hyper-inflation.

[HairyArsedBloke]

Instead of pumping money into the system, which will eventually cause inflation, HMG should have considered tax cuts to enable consumers to have more disposable income.

So long as they cut public spending as well otherwise they would have to issue debt. If they didn't do that then they might find that they only people left to borrow from would be the Bank of England and they get their money by ......

[NotAllThere]

Don't be silly. They're socialists.

[Cyberman]

Instead of pumping money into the system, which will eventually cause inflation, HMG should have considered tax cuts to enable consumers to have more disposable income.

[bogeyman]

Plus the use of the non-word "incentivise".

Good spot Sysman, but my eyeballs were screaming before I could get to that part of the sentence.

[Sysman]

I'm sorry but I find your overly-long username, and your insistence on the particularly naff, Georgia serif type face (at a tiny point size), eliminates all meaningful content from your posts.

Plus the use of the non-word "incentivise".

[bogeyman]

What the govt/bank really needs to be doing is pumping money into small service businesses to incentivise exports.

I would vote for tax breaks for selling my services abroad, e.g. for every EUR or USD invoice raised to a genuine foreign customer I would willingly drop my rate to that customer if the tax break covered the drop - just to drum up more export business. In addition help and guidance with export issues and marketing would be of great assistance. Finally having access to some sales people paid for by govt would top the icing on the cake.

This would put money in pockets across the board in a range of service industries, in some cases this would encourage employment hence confidence and spending, which improves the govt's tax collection, VAT collection and reduces benefit payments.

Why sink money into banks when small businesses are responsive and agile enough to take up the challenge?

I'm sorry but I find your overly-long username, and your insistence on the particularly naff, Georgia serif type face (at a tiny point size), eliminates all meaningful content from your posts.

[MPwannadecentincome]

What the govt/bank really needs to be doing is pumping money into small service businesses to incentivise exports.

I would vote for tax breaks for selling my services abroad, e.g. for every EUR or USD invoice raised to a genuine foreign customer I would willingly drop my rate to that customer if the tax break covered the drop - just to drum up more export business. In addition help and guidance with export issues and marketing would be of great assistance. Finally having access to some sales people paid for by govt would top the icing on the cake.

This would put money in pockets across the board in a range of service industries, in some cases this would encourage employment hence confidence and spending, which improves the govt's tax collection, VAT collection and reduces benefit payments.

Why sink money into banks when small businesses are responsive and agile enough to take up the challenge?

[b0redom]

Is no one else worried that Mr Bean is the Bank of England’s deputy governor?