Because thats not what happened with QE. Banks were bailed out before QE. They were given guarantees, and Government bought up their shares. This wasn't to be nice to bankers - it was to stop the economy collapsing - as money stopped flowing around it. QE went in later - to compensate for reduced demand and liquidity in the economy - it was lent by banks to people to spend. it added 1-2 % to GNP - without it the recession would have been worse for everyone . It helped mortgage owners, left more money in people's wallets, started a housing bubble up again, , and penalised savers - by reducing demand for savings and interest rates,
QE was needed because interest rates were already almost zero, and couldn't be reduced more to stimulate demand , the economy was in negative growth , and inflation was zero. If you do it. when the economy is growing ,demand is high, inflation is positive and rising , and interest rates are rising, all it does it produce more inflation, and higher interest rates. Government spends more - but it goes on increased borrowing costs ,and the population and economy. suffers as higher interest rates mean more unemployment, lower demand, and costlier mortgages. That would be bad enough in small doses - but Corbyn plands to use it to fimance a major proportion of his hundreds of billions of extra spending .He will end up relying on it more - as his plans to take in more tax, and remove all assistance to industry, to make more money to spend, are ridiculous, and will have to be abandoned.
Its a complete fantasy. If it was possible to magic money from the air, in normal economic times, everyone would do it, and mo one would work anywhere. Its just a recipe for inflation. It won't happen, because its both impossible, and illegal under EU regulations designed to stop inflation becoming a major problem. Its what happens when you have a mass of Labour activists clamouring for more spending everywhere when there's no money. and you have an economic illiterate like Corbyn trying to win election - by offering them magic money to spend. .
Everyone is creating magic money. That's the problem.
Use of the phrase 'negative growth' is a misnomer. It's happy talk. What's wrong with giving that economic activity it's true name: decline.
QE shouldn't have happened. The banks should have been allowed to go bankrupt.
In 2009 the then shadow chancellor George Osborne said "QE is the last resort of desperate governments".
He was right.
Once QE or the debasing the money supply (to give it's proper terminology) starts, it doesn't end. The bailout banks are more indebted than they were at the time of the crisis, they still make risky bets on the various commodities and currencies exchanges and they're all addicted to cheap money.
NWB you seem to be suggesting high interest rates is a bad thing. It isn't. High interest rates are a sign to our creditors we're serious about our commitments. We can't borrow real money and pay back with monopoly notes in perpetuity.
The economic system is deeply flawed as it stands at present. Only a new Bretton Woods agreement and a reset of the global economy can cure it's failings.
Well if history repeats itself you have to wait another three elections that's 2030 if the 5 year parliament rule stays.
After 2010 all I read was that the Tories would show their true colours and be thrown out by a sickened electorate in 2015....which didn't happen.
Now the cuts are easing off, there is even less room for this to happen. Hoping to win by waiting for the government to make a mistake is a waste of time, Labour need to attack.....on something.
There's a piece in the paper about him and his wife swimming in sh*t.
I think the honeymoon period is over. Even his crappy PR poses aren't coming off any more and people are starting to ask questions about his failings as PM. This appears to have sent his followers incandescent with rage, for their leader is never to be questioned.
There's a piece in the paper about him and his wife swimming in sh*t.
I think the honeymoon period is over. Even his crappy PR poses aren't coming off any more and people are starting to ask questions about his failings as PM. This appears to have sent his followers incandescent with rage, for their leader is never to be questioned.
Great....that really harms the PM doesn't it.
Of course it is, all those awful stories coming out that appears to be making not a single dent in the Tory poll lead. There needs to be proper attacks that the Tories cannot counter, not the fluffy nonsense that can be batted away easily which Cameron is very good at.
Straw man at the end there, bless.
Of course it is, all those awful stories coming out that appears to be making not a single dent in the Tory poll lead. There needs to be proper attacks that the Tories cannot counter, not the fluffy nonsense that can be batted away easily which Cameron is very good at.
Straw man at the end there, bless.
Cameron doesn't do politics or policies. He doesn't answer questions. Him and his government are never accountable for anything with the help of their media machine.
If I remember rightly many within the Tory party were unhappy with Cameron. I also don't remember anyone expecting a comfortable Labour win.
What was being said before the election were comments like this:
"The Tories are doomed, you better get used to a Labour led SNP administration"
"There's no way Cameron will win, he's a busted flush".
Admittedly I started a thread based on the predictions of the polls asking if Cameron would resign by the weekend!
There were a lot of things said to and fro both sides, but I was called an ignorant idiot in late April because I said the Tories would get a small majority.
I also said that I would not like a Lab/SNP coalition and I was called xenophobic because I said the SNP would have no mandate to decide on things that affected England. The vitriolic things coming from SNP supporters and Labour supporters because I used the "no mandate" line was alarming. When I pointed out that SNP supporters say the Tories have no mandate to Govern Scotland so what's the difference?" I was just told I didn't know what I was talking about.
The gleeful expectations of an anti-Tory majority was like nothing I've seen before. The thread was startling quiet on May 8th.
It is funny reading about Tories panicking over Corbyn being elected.
PMQs await Corbyn. Rumour is he doesn't want to face Cameron on Wednesday. Could it be that having won the leadership contest Labour now have to drill some facts and figures into their man before he is made to look more clueless than Alan Johnson on NI rates.
Comments
Corbyn is making a lot of noise over these issues he's wide awake perhaps those who missed it were asleep
Everyone is creating magic money. That's the problem.
Use of the phrase 'negative growth' is a misnomer. It's happy talk. What's wrong with giving that economic activity it's true name: decline.
QE shouldn't have happened. The banks should have been allowed to go bankrupt.
In 2009 the then shadow chancellor George Osborne said "QE is the last resort of desperate governments".
He was right.
Once QE or the debasing the money supply (to give it's proper terminology) starts, it doesn't end. The bailout banks are more indebted than they were at the time of the crisis, they still make risky bets on the various commodities and currencies exchanges and they're all addicted to cheap money.
NWB you seem to be suggesting high interest rates is a bad thing. It isn't. High interest rates are a sign to our creditors we're serious about our commitments. We can't borrow real money and pay back with monopoly notes in perpetuity.
The economic system is deeply flawed as it stands at present. Only a new Bretton Woods agreement and a reset of the global economy can cure it's failings.
Everyone's been listening to what comrade Corbyn's been saying. His problem is whatever he says is cast into the shade of his more colourful exploits.
Well if history repeats itself you have to wait another three elections that's 2030 if the 5 year parliament rule stays.
After 2010 all I read was that the Tories would show their true colours and be thrown out by a sickened electorate in 2015....which didn't happen.
Now the cuts are easing off, there is even less room for this to happen. Hoping to win by waiting for the government to make a mistake is a waste of time, Labour need to attack.....on something.
I think the honeymoon period is over. Even his crappy PR poses aren't coming off any more and people are starting to ask questions about his failings as PM. This appears to have sent his followers incandescent with rage, for their leader is never to be questioned.
Great....that really harms the PM doesn't it.
Of course it is, all those awful stories coming out that appears to be making not a single dent in the Tory poll lead. There needs to be proper attacks that the Tories cannot counter, not the fluffy nonsense that can be batted away easily which Cameron is very good at.
Straw man at the end there, bless.
Cameron doesn't do politics or policies. He doesn't answer questions. Him and his government are never accountable for anything with the help of their media machine.
PR is all he does.
What was being said before the election were comments like this:
"The Tories are doomed, you better get used to a Labour led SNP administration"
"There's no way Cameron will win, he's a busted flush".
Admittedly I started a thread based on the predictions of the polls asking if Cameron would resign by the weekend!
There were a lot of things said to and fro both sides, but I was called an ignorant idiot in late April because I said the Tories would get a small majority.
I also said that I would not like a Lab/SNP coalition and I was called xenophobic because I said the SNP would have no mandate to decide on things that affected England. The vitriolic things coming from SNP supporters and Labour supporters because I used the "no mandate" line was alarming. When I pointed out that SNP supporters say the Tories have no mandate to Govern Scotland so what's the difference?" I was just told I didn't know what I was talking about.
The gleeful expectations of an anti-Tory majority was like nothing I've seen before. The thread was startling quiet on May 8th.
PMQs await Corbyn. Rumour is he doesn't want to face Cameron on Wednesday. Could it be that having won the leadership contest Labour now have to drill some facts and figures into their man before he is made to look more clueless than Alan Johnson on NI rates.