QE for the people?

[El Cid]

Quantitative easing for people, Jeremy Corbyn style. I dont believe that we should be doing QE for the banks, so I cannot agree that it should be done for the people.

 

We started QE in 2009, we havnt done that well, deflation and lower living standards, what would a good economy look like?

 

http://www.independent.co.uk/news/uk/politics/plough-quantitative-easing-cash-into-building-homes-and-infrastructure-says-jeremy-corbyn-10378393.html

 

https://en.wikipedia.org/wiki/Quantitative_easing#United_Kingdom

[taxman]

QE.....if they were going to spend that much on gilts and bonds and tinkering with bank interest rates...they could have just given people money and let them spend it in shops. You know, helping the economy.

[MintPlumbing]

The Bank of England must be given a new mandate to upgrade our economy to invest in new large scale housing, energy, transport and digital projects.

 

“This would give our economy a huge boost: upgrading our outdated infrastructure and creating over a million skilled jobs and genuine apprenticeships.”

 

It will just encourage faster population growth and then we will need more housing, energy, roads, food, water, imports, ext, ext. and then he will call for more borrowing to build more houses, roads, schools, hospitals.

[Anna B]

You can't build anything without investment.

 

Why not invest in Britain rather than the banks?

 

The whole money thing is a nonsense anyway since it is no longer backed by anything.

 

The stock market is really nothing but a gigantic gambling institution. Would you trust an economic system that puts all the money on a horse in the 3.30?

[Obelix]

You can't build anything without investment.

 

Why not invest in Britain rather than the banks?

 

The whole money thing is a nonsense anyway since it is no longer backed by anything.

 

It is based on something otherwise the pound would be worthless. The BoE effectively controls the money supply, and the amount of money available is a representation of the amount of value the country can give. Essentially the pound is backed by the labour and talent and knowledge pool of UK plc. - ie all of us.

 

The stock market is really nothing but a gigantic gambling institution.

 

No it isn't. It's a market. There is no gambling involved in the market.

[Vague_Boy]

...they could have just given people money and let them spend it in shops. You know, helping the economy.

 

And buy Chinese made phones, Korean made TVs, Indian made clothing.

 

And what do you think will happen to the housing market if people are given a sudden influx of cash? They'll be able to bid higher and prices will rise according as sellers cotton on and raise their asking prices.

 

Quantitative easing (QE) is an unconventional form of monetary policy where a Central Bank creates new money electronically to buy financial assets, like government bonds

 

The thing is, the money created by QE isn't entering the wider economy, so it isn't inflationary. Give it directly to the people and it will be inflationary.

 

Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross domestic product rises and unemployment falls, as the economy moves along the Phillips curve. This is commonly described as "too much money chasing too few goods".

 

LINK

[El Cid]

It will just encourage faster population growth and then we will need more housing, energy, roads, food, water, imports, ext, ext. and then he will call for more borrowing to build more houses, roads, schools, hospitals.

 

If people support what the Government does with QE at the moment, then how can they not support QE for the people?

 

It does seem like quite a clever tactic.

[Anna B]

And buy Chinese made phones, Korean made TVs, Indian made clothing.

 

And what do you think will happen to the housing market if people are given a sudden influx of cash? They'll be able to bid higher and prices will rise according as sellers cotton on and raise their asking prices.

 

 

 

The thing is, the money created by QE isn't entering the wider economy, so it isn't inflationary. Give it directly to the people and it will be inflationary.

 

 

 

LINK

 

So, what did the banks do with the £375 Billion created through Quantatitive Easing?

 

And why is investing it in infrastructure, growing the economy etc such a bad idea? It's not giving it directly to the people, which, incidently, is exactly what the Australian government did. It gave about £1,000 to every man, woman and child in Australia, on condition they spent it rather than saved it.

 

---------- Post added 16-08-2015 at 22:57 ----------

 

It will just encourage faster population growth and then we will need more housing, energy, roads, food, water, imports, ext, ext. and then he will call for more borrowing to build more houses, roads, schools, hospitals.

 

Yep. That's called 'growth.'

[El Cid]

So, what did the banks do with the £375 Billion created through Quantatitive Easing?

 

 

Not sure what this £375 Billion is; but I am sure its been spent on something else already.

[tinfoilhat]

QE.....if they were going to spend that much on gilts and bonds and tinkering with bank interest rates...they could have just given people money and let them spend it in shops. You know, helping the economy.

 

Didn't the Aussies do that?