Comments by "Curious Crow" (@CuriousCrow-mp4cx) on "Burning Money" video.

  1. The UK Ship of State is not a Taxi that can turn on a sixpence. The UK's turning circle is large, and it's engines are more like those of the MV Dali right now - suspect, poorly maintained, and in need of repair. The postwar years or so have been a big psyop, where the insecurities of the British establishment have steered this country into even more troubled waters than the UK faced after World War II. And unless everyone else wakes upto that fact, nothing much will change. We have to be the change we want to see in the world, and voting is only a very small part of that, but still important. Voting alone won't change things. We have to stop believing absurdities before we can stop committing atrocities on ourselves and others. Just a thought.
    4
  2. Thank god someone really understands what the BoE is really doing - an accounting exercise, - while the QE wealth remains in the hands who got the vast majority of it - asset wealthy individuals and corporations, including the financial sector. All done by the BOE selling off the bonds they purchased at full price back to the bond dealer banks they from bought them at full at a discount. Thereby shafting the UK taxpayer to boot.
    3
  3. Not really. You assume that the BOE is allowing the securities they bought to mature, right? Nope. They're selling them off at a discount to bond dealers, which just reduces the BOE's balance sheet, and nothing more. And the biggest purchasers of Bonds are? The Asset Wealthy who got the stimulus money in the first place, and not ordinary people. So the asset wealthy are getting a final bung from their buddies at the BoE. That is why asset prices have not collapsed by any significant amount, and inflation is sticky, even as energy prices are deflating due to the global depression. That is why the Yield Curve is still inverted, and why GDP is the most deceptive economic indicator devised by economists. Remember £800 billion was pumped into the UK economy, and the BOE is ripping the UK taxpayers off by selling back the bonds into the money supply at a discount. And that's the false impression people if QT, but their wallets know the truth, as their purchasing power disappears faster than the toothpaste in an open tube stood on by an elephant. It's the Cantillon Effect caused by being sustained by the BOE own actions. Hence the K-shaped recovery, where the incomes of the asset wealthy continue to go to the moon, and the ALICEs - Asset-Limited, Income Constrained, and Employed continue to have their purchasing power eroded.
    1
  4. Nope. To reverse the Cantillion Effect caused by QE, one cannot let just the purchasing power of the money pumped into the economy and accumulated overwhelmingly by the asset wealthy be eroded by inflation. But that is exactly what the BOE and the Treasury, and other central banks are doing. In particular, the BOE are only reducing what is held on their balance sheet. In effect, that's an accounting exercise, leaving the £800 million of assets in the pockets of the Asset Wealthy, which they are spending on buying more assets, and crowding out the ALICEs of those markets - the (A)sset-(L)imited, the (I)ncome-(C)onstrained, and the (E)mployed. What's worse, the BoE is not allowing the Bonds they purchased from the Dealer Banks to keep them afloat during Covid to mature. They are selling them back to the dealers at a discount. So the post-Covid K-shaped income recovery is being entrenched, with the incomes of the ALICEs being depleted as their purchasing power is also being eroded, whilst the passive incomes of the Asset wealthy continue to appreciate in quantity and value. The only way to reverse this increasing spread between the two groups is tax the asset wealthy. This will reduce the money supply in real terms, and not just in nominal accounting-exercise terms. And those who got most of the stimulus will bear the cost. Not the ALICEs who got very little. In fact, all QE has proven is that the 1) financial capitalism of today is replicating the mistakes of the past in entrenching rentierism and unproductive investment. 2) people hear what they want to hear, and don't always know what they are being told isn't true, and 3) not disincentivising rentierism is a political choice that will impoverish ordinary people, and destroy real economic growth by reducing the resilence of the economy as a whole, whilst politically and economically disenfranchising the ALICE majority. Too much rentierism creates economic instability and prohibits wealth creation amongst those who need it the most.
    1