People’s Quantitive Easing 303


The media is astonishing today in its barrage against Jeremy Corbyn. Presenters repeatedly state that to oppose nuclear weapons and foreign wars is “weak”, as though that were undeniable. Spending quantitive easing on public infrastructure is “inflationary” and “irresponsible” – and these are the presenters not the guests. Why simply handing quantitive easing money to the bankers is not inflationary or irresponsible is not explained.

I would claim to have got there on “people’s quantitive easing” before hearing that phrase. 42 months ago I published

It is beyond doubt true that the effect of creation of new money is to reduce the value of currency already in circulation. The effects will show through in inflation and the exchange rate. Of course, those will continue to be affected by other factors as well, which is why there are better and worse times to do it. But in effect Q.E. is still a transfer of wealth from those who hold any of the currency to those given the new stuff. In other words, more cash from you to the bankers.

Actually if QE had been used genuinely to stimulate the economy it would have been a marvellous thing. With £350 billion we could have built an enormous amount of social housing on brownfield sites, converted derelict high streets into housing, built the Severn barrage and a high speed rail link from London to Aberdeen and still have had change. We could have reopened the steel industry to do it. a thousand manufacturing firms could have been re-tooled. Millions could have been employed. The entire logic of economic depression could have been turned around.

Instead we gave more cash to the bankers.

Progressive opinion catches up with me eventually. In another decade or more likely two, mainstream journalists might catch up as well.


303 thoughts on “People’s Quantitive Easing

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  • Republicofscotland

    “Why reopen the steel industry unless you can be satisfied that it will be competitive with others elsewhere in the world with lower costs – or doesn’t the theory of comparative advantage apply in la la economics land. The market doesn’t provide all the answers when it comes to investment decisions – but if people are being honest rather than just pushing personal projects (or what sounds like a good idea from their mates) it is necessary to spell out how the alternative works.”
    ______________________

    Jeez, you’re no economic mastermind..eh?

    Why reopen steel works…duh jobs, contracts, economic growth for that area, tax receipts for the government.

    When the workers at Ravenscraig were betrayed, the plant was still making a profit.

    http://www.dailyrecord.co.uk/news/scottish-news/revealed-officials-feared-closure-of-ravenscraig-1059471

  • Ishmael

    “what will become of Corbyn? ”

    PM *sigh*

    I imagine podemos will ‘win’ also.

    But that’s a guess after yesterdays result, that I did not predict in this way.

    It was a leadership battle so I don’t know it’s significance to election possibilities. Truth be told where I live (And for me) people pay as much attention as I do to the Xfactor, it’s really not part of anyones life. Elections creep in a bit.

    But he has been saying some stuff, And i’m sure people heard it. Something I guess…

    Why, do you have money on something?

  • fedup

    I’m afraid the history of politically motivated investment in this country and elsewhere leads rather a lot to be desired

    Does this mean, the lobby companies and the sponsors/purchasers of politicians political parties ought to be outlawed?

    ===============

    The day that UK government gave up on the control of the Bank of England and handed it over to the libor fixers of the city, was the day that the last wastages of the control of our economy was handed over to the banksters/robber barons the rest was an elegant consequence, the impoverished we the people and the overtly rich banksters/robber barons riding on our backs.

  • Providence

    If you sniff around the numbers well, it becomes clear we are unde a spell of cocainomics courtesy of osbourne and ALL the stupid economists and accountants are complicit in this fakery.

  • Republicofscotland

    “Im sure he will make a very good leader of the Labour Party but I think all the hysteria in both camps is just that. I don’t think there will be revolution or catastrophe.”
    _______________

    Well not for the Red Tories in Scotland anyway, they’re already a catastrophe, and if the polls continue as they are the Red Tories in Scotland, will be slaughtered come the elections in 2016.

    I hope the Red Tories lose Glasgow.

  • Pan

    Fedup
    3:07 pm

    The way I understand it is that the UK government has historically had no more control over the ‘Bank of England’ than the US government has over the equally-disingenuously-named ‘Federal Reserve’.

  • Republicofscotland

    “Who the hell wants a high speed rail link from London to Aberdeen?”
    _________________

    What a dumb question, Aberdeen is one of the wealthiest area’s outside London and the South East due to the oil and gas industry, thousands of people commute too and from the area, and too and from the rigs.

  • Loony

    QE, as currently practiced, is all about inflating assets like real estate and stock prices. This seemingly improves the asset qualiy of banks and (for a while)serves to mask their insolvency.

    QE for the people will result in more widespread inflation and lead to destruction of the currency.

    Systemic insolvency is a problem everywhere and no solutions are available beyond the extend and pretend currently in favor.

    It makes no difference whether you have more QE, less QE or a different form of QE. The game is up and no solutions are available.

    The terminally stupid will be readily persuadable that war is a solution, hence all the diligent preparatory work for seeking war with just about anyone and everyone.

  • Resident Dissident

    “Why reopen steel works…duh jobs, contracts, economic growth for that area, tax receipts for the government.”

    Most investment will initially create jobs, contracts, economic growth for that area, tax receipts for the government – the question is are we getting the best return possible and is it sustainable – if you don’t consider and appraise different alternatives you end up pissing the money away on the likes of Concorde, British Leyland and Delorean. Just allocating on the basis of which trade unions are making the most noise, the preferences of a peoples commissar just isn’t the way to go – there isn’t a bottomless pit of resources for allocation to investments despite what you may believe.

  • Resident Dissident

    “Aberdeen is one of the wealthiest area’s outside London and the South East due to the oil and gas industry, thousands of people commute too and from the area, and too and from the rigs.”

    that sounds like the thinking that gave us Concorde!

  • Resident Dissident

    “The language of priorities is the religion of socialism”

    Not any longer apparently.

  • Pan

    RD – “there isn’t a bottomless pit of resources for allocation to investments despite what you may believe.”

    Unless those ‘investments’ are banksters, of course.

  • Ishmael

    Robert, “It has to be “thought” first, before it can become a reality.”

    I think it’s lived a lot by people in different ways. There are lots of people in communities who have lot of freedom and imagination, but yea, the circumstances dictate a lot. Influences, ideas…

    Life in the shire goes on much as it has for this past age, with change coming slowly, if at all.

    The Fascist’s have taken over the town this election. lol. Nobody really paid much attention…

  • fedup

    The way I understand it is that the UK government has historically had no more control over the ‘Bank of England’ than the US government has over the equally-disingenuously-named ‘Federal Reserve’.

    You have the the measure of it! However UK government had the ability to determine the interest rates, which then set the whole ball rolling. However Gordon Brown handed that over to the banksters too.

    Hence a wild west for the banksters with no holds barred and no laws for these robber barons, whilst we the people have born the brunt of regulations, and even have a law for taking a leak and how many times ought we shake it before finishing the job, in the absence of obeisance of which we are investigated, castigated and sanctioned!

    Just take note of the adverts on the TV there no fucking products anymore to be bought it is either charities or payday lenders/legal loan sharks, that is the upshot of the service economy for we the people.

    —–
    [ Mod: Stuck in spam queue ]

  • fred

    “JC becoming PM could be thought of as a revolution (at the very least, in comparison to the glacial-velocity incremental change the Brits have traditionally become accustomed to expect).”

    He’s 66 years old, I don’t think he would consider starting a job so demanding at the age of 71 he’d be 76 at the end of his term. It’s a sad fact but nobody gets any younger.

  • Bob Smith

    Nevermind, I am here to be persuaded but there are still no coatings on the project. I have lived in the Fens for many years and we have not had serious flooding since 1958 because of the excellent dyke, bank and river system that started its life in the 17th century. However, one look at the river Nene last year shows we were a couple of centimetres from being inundated and the response of the drainage authorities has been complacency. A Wash barrier project might work but it needs to be costed and a business case developed. Investors are needed and local and central government backing is needed. The Tory run authorities round here are fiercely opposed to wind farms both on and off shore, and central government is wedded to the Chinese/French nuclear project. By the time this project is even discussed we will be underwater.

  • Roderick Russell

    Re Craig’s statement – “Progressive opinion catches up with me eventually. In another decade or more likely two, mainstream journalists might catch up as well.” Craig I hope that your wish is realistic but I would seriously doubt it.

    In my opinion, no British government will ever be permitted to operate against the interests of “The Thing” / The Establishment in the UK unless their ongoing abuse of power is tackled first. More likely, again just my own opinion, the incompetence and poor decision making that also goes hand in hand with the other abuses of “The Thing” is such that over the next century or so the Country will gradually move into the 3rd world. Perhaps somewhat similar to what happened in Argentina.

    As you know, the high establishment’s (the Thing’s) position is buttressed: (1) by the MSM acting as the propaganda arm for “the thing” (as AJP Taylor called this secret government by hidden power elites). This won’t change, no matter what individual journalists may want, since they were set up to be a tool for propaganda. It is amazing that some people still look for honest reporting and integrity in the media. Rupert Murdoch told us years ago – “No such thing as a free press in the UK”; so why don’t we believe him? (2) By utilizing the security services as their own secret police, as illegal enforcers. Years ago, perhaps noticing the changing trend, Lord Denning said -“The Security Services are to be used for one purpose, and one purpose only, the defense of the realm …. For it would be intolerable to us to have anything in the nature of a Gestapo or secret police”

    Well, are they becoming a Gestapo as Lord Denning feared? Ask yourself: establishment pedophiles protected from justice, the press more and more becoming controlled and censored by MI5 and MI6, rule of law overridden and innocent citizens persecuted for no honest reason except that “the thing” wishes it…. And so on. You yourself have been subjected to the beginnings of a Zersetzen persecution as have I and others who sometimes comment on your blog.

    As this sort of persecution advances, and it gets much worse as time goes on, it becomes the modern equivalent of the concentration camp, albeit in secret.

    Of course there is no barbed wire – but there doesn’t have to be. Victims of Zersetzen are so slandered and lied about that they cannot earn a living and are so ostracised from society that they are effectively imprisoned without barbed wire.

    Of course there are no camp guards torturing and beating up the prisoners. But victims of Zersetzen have their children threatened and themselves constantly harassed – which is worse?

    And then there are no executions (excepting “accidents” we occasionally hear about). But Zersetzen victims are sometimes deliberately driven to commit suicide, or die on the street through lack of funds, or injure themselves badly as a result of seizures.
    As I have shown on my film, the stated objective by the security services is to cause their target victim “Physiological” “Cognitive” and “Affective” stress for the rest of their life.

    This is the language of the concentration camp – It is Nazism without barbed wire.

  • MJ

    “thousands of people commute too and from the area, and too and from the rigs”

    That doesn’t explain why the thing has too set off from London. Wouldn’t a local rail network fit the bill better?

  • Pan

    Fred – “It’s a sad fact but nobody gets any younger.”

    But they can become wiser.

    I believe people instinctively recognise a wise leader.

    Wisdom requires a brain. The body is secondary. (PMs are physically cosseted anyway, which helps with longevity).

  • Robert Crawford

    A country’s assets are it’s people.

    Without people all you have is an empty space.

    Therefore, invest in the people by educating them well, housing them well, paying them well, treating their illnesses well, looking after them well in a time of need.
    That way everyone does well. Not just those who have grabbed power, one way or another, for they will surely face rebellion sooner, or later, and could end up with nothing.

  • fred

    “Well not for the Red Tories in Scotland anyway, they’re already a catastrophe, and if the polls continue as they are the Red Tories in Scotland, will be slaughtered come the elections in 2016.”

    Well the Tartan Tories are certainly panicking about something I’ve seen nothing but “second referendum” in the headlines this morning. Maybe they’re worried a blue collar banker and a working class lawyer might not match up to a real socialist.

  • Plop, Splash! CAT Article 6!

    opposing nuclear weapons and foreign wars is “weak”, spending is “inflationary” and “irresponsible,” but opposing UK state crime and impunity, well…

    http://jeremycorbyn.org.uk/articles/morning-star-curbing-rights-does-not-stop-terrorism/

    Jeremy better watch out for CIA lone nuts®

    The intriguing thing about this vilification is how it sidesteps the real sticking point, impunity, by fixating on things that are less touchy.

    Honour and glory to Corbyn for a plump, buoyant turd in the punchbowl!

  • ------------·´`·.¸¸.¸¸.··.¸¸Node

    The Bank of England printed the money, the government borrowed the money, ….

    …. and therein lies the problem. The government has to pay interest on that money.

    Think about it.

    Our government no longer has the right to print its own money. We ceded that right to the bankers. Every pound sterling is borrowed at interest from the bankers. Every one.

    Think about it.

  • Pan

    MJ – “Wouldn’t a local rail network fit the bill better?”

    Yes it would!

    Damn that Dr Beeching!

  • Laguerre

    the government repays the loan from the Bank of England, the Bank of England un-prints the money.

    I wasn’t convinced by Fred’s idea that the Bank of England un-prints QE money, if indeed it ever gets it back. Apart from the theory, has this ever actually happened? I couldn’t imagine a government actually acting like that. Apart from anything, it would appear to increase the deficit (I know deficit reduction is only theoretically a major government objective, but even so.)

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