BOE Printing £75bn
Discussion
The Bank of England are going to pump £75bn in new money into the economy:
http://news.bbc.co.uk/1/hi/business/7927100.stm
One one hand it's a realatively good thing which they should have done before: "nobody has any money, lets print more so they do"
but on the other we will probably not see much of it or any effect on the economy; just because there's more money out there doesn't mean we will spend.
http://news.bbc.co.uk/1/hi/business/7927100.stm
One one hand it's a realatively good thing which they should have done before: "nobody has any money, lets print more so they do"
but on the other we will probably not see much of it or any effect on the economy; just because there's more money out there doesn't mean we will spend.
Why didn't the Government use this 'play money' to bail out the banks? Then they wouldn't have had to borrow it and we wouldn't taxed up to our eyeballs for the next 20 years trying to pay it back...
In debt? Just print off some money to pay it back with!
(why can't I do that? Why can't I print off some £50 notes and go and buy stuff I want with them?)
In debt? Just print off some money to pay it back with!
(why can't I do that? Why can't I print off some £50 notes and go and buy stuff I want with them?)
dpbird90 said:
One one hand it's a realatively good thing which they should have done before: "nobody has any money, lets print more so they do"
but on the other we will probably not see much of it or any effect on the economy; just because there's more money out there doesn't mean we will spend.
It's not really a good thing. Printing more money devalues our currency even more but on the other we will probably not see much of it or any effect on the economy; just because there's more money out there doesn't mean we will spend.
Theres a website already set up for it http://www.festisite.com/money/
So, when we were told by Darling and Brown that the UK was in the best position of all the EU nations to tide out the recession, as we have all the key elements in place to safeguard against it, they weren’t really being completely honest?
Edited by chris watton on Thursday 5th March 19:37
MrV said:
Where does this money go though ? I could understand if they where spending it on new roads ,houses etc but they don't seem to be forth coming about what it will be spent on.
Apparently it's this:The BoE will create £75bn and use it to buy government bonds (gilts) and corporate debt over the next three months to boost the flow of money in the economy. The Bank has been given permission by Alistair Darling to spend a total of £150bn on asset purchases. The £75bn figure includes £50bn previously allocated to the Bank for asset purchases to restart credit markets.
http://www.guardian.co.uk/business/2009/mar/05/int...
turbobloke said:
MrV said:
Where does this money go though ? I could understand if they where spending it on new roads ,houses etc but they don't seem to be forth coming about what it will be spent on.
Apparently it's this:The BoE will create £75bn and use it to buy government bonds (gilts) and corporate debt over the next three months to boost the flow of money in the economy. The Bank has been given permission by Alistair Darling to spend a total of £150bn on asset purchases. The £75bn figure includes £50bn previously allocated to the Bank for asset purchases to restart credit markets.
http://www.guardian.co.uk/business/2009/mar/05/int...
Reading through it they are just pumping more money into the banks then on the off chance that they may well start to lend money again
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