£175Bn of QE - What has the money been used for?
Discussion
Last month UK PLC borrowed another £16.1Bn - a new record for one month.
The total net borrowing for the first 5 months of ths finacial year is now £65.3bn.
It is my understanding that so far this financial year has £175Bn has been 'eased' into the economy.
Where has this money gone? What has it been used for?
I thought it was being used to buy back government bonds from the banks to increase the money supply - if so why hasn't our overall debt fallen?
e.g if say at the start of the fincancial year we owed £1000Bn. If we had borrowed a further £65Bn and bought back £175Bn of bonds the total debt should of been reduced by £110Bn. Why is this not the case?
Or is it a case that without QE we would of needed to borrow an extra £175Bn?
What am I missing?
The total net borrowing for the first 5 months of ths finacial year is now £65.3bn.
It is my understanding that so far this financial year has £175Bn has been 'eased' into the economy.
Where has this money gone? What has it been used for?
I thought it was being used to buy back government bonds from the banks to increase the money supply - if so why hasn't our overall debt fallen?
e.g if say at the start of the fincancial year we owed £1000Bn. If we had borrowed a further £65Bn and bought back £175Bn of bonds the total debt should of been reduced by £110Bn. Why is this not the case?
Or is it a case that without QE we would of needed to borrow an extra £175Bn?
What am I missing?
Trouble is, the UK is still accumulating debt; there's interest to pay on the extant principle debt, but there is new debt arriving every month that public sector spending exceeds the dwindling tax receipts from a failing private sector.
FWIW, I reckon the banks have, one way or another, pushed a good chunk of the QE in this direction: FTSE100
Edited for piss poor spellering.
FWIW, I reckon the banks have, one way or another, pushed a good chunk of the QE in this direction: FTSE100
Edited for piss poor spellering.
Edited by Digga on Monday 21st September 11:45
chris watton said:
Did I hear that the total tax receipts does not even cover the UK's welfare cheque?
If that's right, that is a pretty sad state of affairs!
I thought it was total income tax receipts!If that's right, that is a pretty sad state of affairs!
From another source:
bbc said:
The government's overall debt now stands at £804.8bn, or 57.5% of GDP, an increase of £172bn in the past year.
So would the increase have been £347Bn without QE?jesusbuiltmycar said:
From another source:
Even the bankers don't understand how the banking system works, do you expect us laymen to understand how it works and how the borrowing etc works?bbc said:
The government's overall debt now stands at £804.8bn, or 57.5% of GDP, an increase of £172bn in the past year.
So would the increase have been £347Bn without QE?Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff