BS: Printing more money UK What is that?

Subject: BS: Printing more money UK What is that?
From: Rasener
Date: 08 Jan 09 - 03:10 AM

Ok so the papers are claiming that the Bank Of England will print more money or to use another expression "quantitative easing", although the Government are denying such a thing.

So how does that work and what good will it do?
Who will benefit?
Is it borrow Peter to pay Paul?

Anybody capable of putting it into simplistic terms just exactly what it is all about. Please no techy responses, I have a headache.

Subject: RE: BS: Printing more money UK What is that?
From: Lizzie Cornish 1
Date: 08 Jan 09 - 03:29 AM

"Anybody capable of putting it into simplistic terms just exactly what it is all about."


Er...is it that we're well and truly screwed? :0)

Hey, look on the bright side, at least we'll all end up on the streets together, and we can use the money for blankets. ;0)

Zany times, huh?

Subject: RE: BS: Printing more money UK What is that?
From: Keith A of Hertford
Date: 08 Jan 09 - 03:37 AM

I am sure that the idea will be every bit as successful here as it has been in Zimbabwe.

Subject: RE: BS: Printing more money UK What is that?
From: JohnInKansas
Date: 08 Jan 09 - 03:37 AM

EXAMPLE OF WHAT IT MEANS

John

Subject: RE: BS: Printing more money UK What is that?
From: GUEST,Musket
Date: 08 Jan 09 - 03:56 AM

The link above paints a disturbing picture, and as it is 10 months old, the situation is even worse now.

One lesson any country can learn from it (and some other economies over the years) is that when the government stops printing money and starts issuing bearer bonds, you know you are stuffed.

Before we get too excited though, this is unverified media hype at present and the government are denying it strongly. The timing of the story nicely coincides with the Bank of England monetary committee meeting today to discuss a further interest rate drop.

I assume they will take more heed of other stories, such as Sainsbury's supermarkets having their best quarter ever, and the other supermarkets about to announce similar figures.

The situation is a grave one, and many companies who walk a tightrope are falling off at present.

Not a good time for many people, but nationally, stunts such as printing money will be exposed immediately, and I doubt either party wants an election at this time...

Subject: RE: BS: Printing more money UK What is that?
From: Richard Bridge
Date: 08 Jan 09 - 03:57 AM

It's called reflation and it is used to cure recessions. You will remember that Thatcher used the opposite, restriction of money supply, specifically to cause a recession, and the debates about whether to use the M1 measure or the M3 measure or the modified M3 measure in that context.

Subject: RE: BS: Printing more money UK What is that?
From: Lizzie Cornish 1
Date: 08 Jan 09 - 04:18 AM

"..Before we get too excited though, this is unverified media hype at present and the government are denying it strongly. The timing of the story nicely coincides with the Bank of England monetary committee meeting today to discuss a further interest rate drop..."

I heard, on Monday, from both the Post Office and my bank, that the Bank of England were meeting that night to discuss interest rates. They'd heard that almost certainly a 1% drop was about to happen, possibly even 1 1/2%.

You have to laugh. You just have to, because to create 'negative savings' could only happen in the crazy times we're living in.

Seems to me that more people need to take off their shoes and socks and go back to counting on their toes, because we seem to have bankers and politicians who can no longer add up.

Average house price £250.000.
Average wage, around £15,000 - £20,000

Ooooookayyyyyyyyy.....

New World Disorder, I guess.


Your new Cool Britannia High Street Bank


Australia...here we all come! :0)

Subject: RE: BS: Printing more money UK What is that?
From: Big Al Whittle
Date: 08 Jan 09 - 04:28 AM

I agree with paul. Its better than the alternative - the famous handwringing TINA act.


There Is No Alternative to watching an entire generation going to waste and seeing whole communities drift into criminality, open the floodgates for oganised crime - Thatchers real legacy to this country.

Before that bitch, cocaine was just a song.

Subject: RE: BS: Printing more money UK What is that?
From: Rasener
Date: 08 Jan 09 - 05:53 AM

The part i am trying to grasp, is the issuing of more money. Who will get that money and how will it be used. Isn't it a bit like a loan?

Subject: RE: BS: Printing more money UK What is that?
From: Jean(eanjay)
Date: 08 Jan 09 - 06:03 AM

print more money

What a novel idea :)

I can't grasp how it works either but I'll definitely follow this thread now and hope to find out.

Subject: RE: BS: Printing more money UK What is that?
From: Richard Bridge
Date: 08 Jan 09 - 06:15 AM

Oh FFS. Banknotes are simply a token. Put more into circulation, pent up demand becomes effective demand - people can sell things, so they make them, so there are jobs. The downside is potential inflation. Not today's problem.

Subject: RE: BS: Printing more money UK What is that?
From: Jean(eanjay)
Date: 08 Jan 09 - 06:50 AM

In today's desperate economic circumstances it is understandable - albeit deeply regrettable - that a bitter and damaging row about the management of our finances has broken out between Chancellor Alistair Darling and the Bank of England.

taken from: here

If more banknotes are printed then the government would have to work with the Bank of England, here . Is that likely to happen?

It sounds as if the idea could lose us confidence in international markets. Would it affect the value of the pound?

Subject: RE: BS: Printing more money UK What is that?
From: Lizzie Cornish 1
Date: 08 Jan 09 - 07:00 AM

In Totnes, they've been using 'acorns' for a very long time, rather than money.

The 'acorns' come in a sort of cheque book.

"I hereby promise to clean your windows, if you promise to help mend my wall"

That kind of idea.

No money's ever needed amongst those who've joined that circle. Great idea!

No money. Let's burn it all and get back to bartering.

Subject: RE: BS: Printing more money UK What is that?
From: Lizzie Cornish 1
Date: 08 Jan 09 - 07:03 AM

Here you go:

LETS - Local Economy Trading Systems

Subject: RE: BS: Printing more money UK What is that?
From: beardedbruce
Date: 08 Jan 09 - 07:08 AM

Lizzie,


How do you tax the barter economy? THAT is why it will not be allowed to expand.

We have a similar thing here in Washington, DC. Even have printed vouchers ( 5 - 10 - 20 "bucks") that represent specific times worked. Accepted at some local businesses ( redeemed by the issuing group).


But frowned on by local government- as it reduces the tax base.

Subject: RE: BS: Printing more money UK What is that?
From: Lizzie Cornish 1
Date: 08 Jan 09 - 07:17 AM

Oh Poo to local government. They're all too busy having meals in expensive hotels to worry too much, until they no longer have any money coming in from us to buy their treats, of course.

"I'll empty your dustbins for the next year, if you nurse my sick mother back to health"

"I'll fill your library with books, if you help teach the local children with them"

"and so on and so on, ad infinitum"

We could do away with the need for taxes entirely. :0)

Maybe we all need to take to the streets...and throw all these dingbats out of office. I think we should ask the French, they're quite good at doing that. We may need to build a new Bastille though..or maybe we could just open up The Tower of London and plonk them all in there. Hmmmmmmm....

:0)

Subject: RE: BS: Printing more money UK What is that?
From: Richard Bridge
Date: 08 Jan 09 - 08:53 AM

Totnes - my late wife and m duaghter went there once and came back loving it - said it was a time warp straight back to the 60s and 70s, flares, tie-dies, afro hair on white people, joss-sticks, and yeah like er peace and love man.

Subject: RE: BS: Printing more money UK What is that?
From: Catherine Jayne
Date: 08 Jan 09 - 09:03 AM

I don't understand the putting more bank notes into circulation either....surely the people will have to have the money in their accounts in the first place. Ho Hum. What would be really nice would be a cut in our council taxes instead of increasing them.....still not sure where all our council tax goes...we don't even get a bin where we live!

Subject: RE: BS: Printing more money UK What is that?
From: Rapparee
Date: 08 Jan 09 - 09:28 AM

On the news: They're not printing money any more. Government admits, "It was a mistake. We meant to print Zig-Zag papers."

Subject: RE: BS: Printing more money UK What is that?
From: Jean(eanjay)
Date: 08 Jan 09 - 09:28 AM

Interest rates have just been cut by 0.5% . If this latest cut does not work, the only path left is for quantitative easing, where the Bank effectively prints money and uses this to buy up long-term assets in the market place: here

There's an oak tree overhanging my garden so I'll be all right if they change to acorns instead. LOL

Subject: RE: BS: Printing more money UK What is that?
From: Jean(eanjay)
Date: 08 Jan 09 - 09:30 AM

I'll just have to fight with squirrels though :-)

Subject: RE: BS: Printing more money UK What is that?
From: Lizzie Cornish 1
Date: 08 Jan 09 - 10:05 AM

Totnes is still exactly the same, Richard.   

Land of the Free!

Totnes

The boat trip from there to Dartmouth and back, is well worth doing, if ever you get down that way again.

Subject: RE: BS: Printing more money UK What is that?
From: Rasener
Date: 08 Jan 09 - 11:17 AM

Ah the memories of Totnes.
Used to live in Paignton, so had many a trip to Totnes. I always made sure I visited the wonderful games shop at the top of the hill on the right hand side and never came out empty handed :-)
Have they still got the pottery place where you can paint the pottery yourself?