Comments by "boz" (@BOZ_11) on "Starmer announces his plan for growth \u0026 it's as stupid as we feared" video.

BoE can't run out of CB reserves (they create it out thin air). Treasury cannot run out of pounds (they create it out of thin air). The only constraints on spending are available resources and inflation. Taxes are inflation control
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@johnowen1677 There are lots of advanced economies who scarcely have any gold, like Estonia, Iceland, Slovakia, Denmark, UAE, etc. Lebanon has more than twice as much gold as Sweden, yet is nowhere near as rich. We haven't been on a gold standard for more than 100 years.
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@thatguy2608 "The BoE doesn't create reserves out of 'thin air'" That's like saying that fiscal spending doesn't come from thin air, since it mostly accompanies money bills; a weak obfuscation. If you bothered to look at CB reserves of the BoE, they went from £46bn in 2006 to over £200bn in 2009 in order to buy under water bank assets (mostly to buy shite MBS's, essentially a bail out). Some of these dog poo assets were 5+ years old before the CB reserves even existed/printed, and no extra CB money would have been printed, had those securities been safe. In other words, they can print as the need arises, without some special legal threshold, or some special corresponding asset to exist before doing so. The BoE is an executive branch.
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@johnowen1677 What about it?? Only 5.6% of the BoE's reserves are denominated in gold; if it was zero, it'd make no difference, since 'reserves' aren't one thing, they're a mix of things like cash, central bank money ("reserves" or M0), treasury securities, gold, etc. That 5.6% (gold) can be replaced over night with CB reserves. Zero gold, high income economy.
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