Who are we paying 1 billion a week in interest to?

[JacksHereR]

....so I was reading an article projecting about how our government will be paying 1.5 billion per week in interest pretty soon.

Who/What privately owned bank are we paying that money to? racking up the debt with?

Does anyone know?

[renrut]

anonymous said:

[redacted]

Is that last statement really correct? If they're organisations outside of the UK loop then surely they'll be wanting their cut regardless of what fancy financial shenanigans UK Plc wants to play internally?

[CzechItOut]

anonymous said:

[redacted]

So why don't we print £200bn in tenners and pay the whole lot off?

[cazzer]

CzechItOut said:

anonymous said:

[redacted]

So why don't we print £200bn in tenners and pay the whole lot off?

We cant afford the paper.

[RichardD]

CzechItOut said:

anonymous said:

[redacted]

So why don't we print £200bn in tenners and pay the whole lot off?

That was done last year (but as already said, paper is expensive so it was electronic), otherwise known as Quantitative Easing !

But I think there will be another round of QE for the second dip....

[FourWheelDrift]

JacksHereR said:

....so I was reading an article projecting about how our government will be paying 1.5 billion per week in interest pretty soon.

Who/What privately owned bank are we paying that money to? racking up the debt with?

Does anyone know?

Herro!







Ok, not him. But someone very much like him in China.

[anonymous-user]

[Hedders]

cazzer said:

CzechItOut said:

anonymous said:

[redacted]

So why don't we print £200bn in tenners and pay the whole lot off?

We cant afford the paper.

[JacksHereR]

fbrs said:

^^ so are gilts the only way the government can borrow money?

the bank of england is privately owned, the BOE controls the interest rate. What is stopping them from raising interest rates and taking control of the UK, or was our control of the UK lost long before>?

[anonymous-user]

JacksHereR said:

What privately owned bank are we paying that money to?

i assume you are implying the BoE is privately owned (by the Rothchilds natch) like this silly conspiricy email going round i keep getting... it's not; it was nationalised in 1946 and is wholely owned by the government, ie us.

[JacksHereR]

OK so why is 1 billion pounds having to be coughed up to service our governments debt each week?
(that is just to pay interest only, its not repayment of any of the actual debt)

If we owned the bank of england and lent money to ourselves, it wouldnt cost us anything in interest?

[anonymous-user]

JacksHereR said:

the bank of england is privately owned

no it isn't.

http://www.bankofengland.co.uk/about/legislation/1...

regarding why we pay interest to ourselves. 1. who cares? the taxpayer pays it back to its self. 2. the treasury issues gilts, the boe buys them in the open market (at auction), in theory this drives the price up and the yield down. the boe now holds markettable securities which it can sell back to the market once, if, we ever get out of this st and qe is unwound. if the treasury only issued zero coupon bonds (no interest) the price be at a deep discount, it wouldn't change their cost of funding (in fact i expect it would go up).

Edited by fbrs on Wednesday 17th March 12:47

[JacksHereR]

hmm so the private owners of the BOE gave it away to the UK in 1946?

around the same time, was this in return for giving palestine to the jews and creating Israel?

If we own the bank of England how do we receive the profits that the BOE make?

[Fittster]

anonymous said:

[redacted]

It also depends who open the information about buyers is. In the US it's not very transparent as to who is buying bonds.

[JacksHereR]

anonymous said:

[redacted]

ahh so get joe blogs middleclass to take the hit on inflation through pensions having to buy the worthless gilts. I read that the 200bn QE mostly went abroad - in return for some foreigners selling/cashing in the gilts they bought.

[anonymous-user]

JacksHereR said:

I read that the 200bn QE mostly went abroad

QE is an action by the BoE to 'print money' and buy treasury issued debt. it can't 'go abroad'. i dont know what you've been reading but it appears to be almost entirely wrong

Edited by fbrs on Wednesday 17th March 13:04

[anonymous-user]

anonymous said:

[redacted]

ok if you like. money is fungible and its a global market so you could accuse anyone who bought gilts of 'giving the money away' to anyone who sold gilts. all you are really doing is giving the money back that the gilt seller lent us in the first place. tonker you clearly have a better understanding of the mkt than this guy and you areconfusing the issue. from the first question about which 'private banks' we pay interest to, to the boe and the jews, to sending the money overseas, this guy jack has a crackpot conspiricy theory he's trying to 'expose', i'll wager it has something to do with the rothschilds and rockafellas running the world.

[RichardD]

Fittster said:

... In the US it's not very transparent as to who is buying bonds.

That famous party pooper Ron Paul wanted to audit the fed but was blocked..

http://www.ronpaul.com/2009-07-07/senate-leadershi...

[RichardD]

anonymous said:

[redacted]

Do you know if that happens at Davos or Bilderberg?

[Fittster]

anonymous said:

[redacted]

I think it's more a simple case of reading order-order.

"Today on Threadneedle Street in the City, the Monetary Policy Committee meets to decide the Bank of England’s base rate and whether or not to keep the printing presses running The base rate is currently of symbolic importance (unless you have a base rate tracker mortgage), because prevailing real world market rates are far higher than the official 0.5%.

Has QE worked? We will never be able to answer that question definitively. Economists will argue forever about what would have happened if things had been done otherwise. We can however point to unintended consequences of the Anglo-American monetary splurge. Commodity price inflation, a non-trivial £200 billion unwinding problem in the UK, a yet more burdensome government debt disaster. The evidence is that QE has largely allowed the Bank of England to buy the government’s new debt giving foreign investors an exit route. Pimco, the world’s biggest bond investor has taken that exit route from gilts and says they are now resting on nitro-glycerine."

http://order-order.com/2010/02/04/qe-or-not-qe-tha...

From a layman's position printing money to buy your own I.O.Us is rather strange concept.