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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  • Habbbakuk (combat cant)

    I’m happy to see that Robert Crawford has treated us to yet another of his profound, in-depth ,well reasoned and well thought out and highly analytical contributions to today’s debate.

    I refer of course to his

    “Take the £380 billion back off the bankers and put it into the publics (sic – missing apostrophe)benefit.”

  • Ishmael

    “heard that over 10,000 new members joined since yesterday”

    Seems he has hit a button, guess it’s needed also to push his mandate through. Fair play, systems aside, fair play.

  • Al Dossary

    Amongst the lessons to be learned from the Japanese Tsunami is that to have Emergency generators, pumps and general electrical plant sited in the basement is not good planning.

    Incidentally, I believe the Saudis are also planning to build some 14 nuclear stations in the future. Some 50% or more of their generation currently comes from oil fired stations.

  • N_

    Any truth in the rumour that Jeremy Corbyn has nominated Ken Livingstone for a peerage?

    And that if the ‘queen’, advised by Cameron, grants him one, then Corbyn will appoint him as shadow Chancellor?

    Just kidding.

  • fedup

    Oh dear, nevermind; heard that over 10,000 new members joined since yesterday.

    There is lots more where they came from, those whom left the Tonykins neolabour party now will be coming in droves and them some.

  • Ishmael

    Mary re ‘Sharper than a serpent’s tooth’.

    “when he has rarely displayed it himself?”

    Gives him credit.

  • N_

    My source also says Corbyn has nominated a radical ex-ambassador for a peerage.

    (Great to see Corbyn elected. Let’s not lose our sense of humour.)

  • Anon1

    So there seems to be a concerted effort by Fedup, Glenn and others to label me as a racist, presumably because I don’t fit in with the far-left desire to see the country swamped with endless migrants from an unending source. If by “racist” they mean opposition to Islamic fanaticism, a distrust of the refugee BS being served up by the media, and a belief that the current record-breaking levels of immigration are quite enough for this small island then I stand guilty as charged.

    The accusation of stoking up race riots is really quite rich considering that these people want and believe that the country must undergo forced enrichment against the majority will of its people. They want to make the conditions absolutely ripe for racism in an otherwise peaceful and tolerant country.

  • Habbbakuk (combat cant)

    Anon!

    “News from Corbynista paradise Venezuala: opposition leader sentenced to 13 years in
    prison. 138 witnesses heard for the prosecution. One for the defence.”
    ________________

    Worse than that, Anon!.

    According to this weekend’s Le Monde, NO witnesses were herd for the defence.

    Le Monde also says that the trial took place over 71 sittings and in huis clos with neither the press nor representatives of human rights organisations being allowed to attend.

    Le Monde also makes the not altogether irrelevant point that the next general election in Venezuela is due to take place in two ad a half months time.

    Venceremos indeed!

  • Mary

    Falconer ffs !!!!!! BLiar’s flatmate and the one who set up the Hutton inquiry for BLiar almost before Dr Kelly’s body was cold.

    Oh Jeremy.

  • Ishmael

    Honestly, though my local experience of culture isn’t great, bad history in small town, I do get about and meet a few people. And it is shocking the degree of contempt with witch the LABOUR government have treated people with Tony and onwards.

    Lot’s of people do have a history they remember, and are not that stupid. It shows a lot of fare minded thinking also.

    The party said a big FU as soon as they got in. Just abandoned everything. What planet do they live on, what was the need?…Whatever.

    ..Nice backlash. 🙂

  • fedup

    So there seems to be a concerted effort by Fedup, Glenn and others to label me as a racist,

    Your racist conduct that evidently you don’t even recognise it to be racist, has been noticed by so many commenters on this blog. These commenters whom have gone on record about your conduct being abhorrent and racist, yet in your supremacist “wisdom” you then decide to come out shouting; everyone is out of step/wrong/mendacious/far left/poopy pants except you!

    The rest of the claptrap justifying your racist conduct is yet more pitiful excuses of a racist justifying its abhorrent prejudices and racist conduct. It is unfathomable why this blog tolerates your racist conduct?

  • Habbbakuk (combat cant)

    N_

    “And that if the ‘queen’, advised by Cameron,..etc.etc..”

    ______________________

    It may be – I neither know nor care – that you are a ‘queen’ but I can assure you that the person you refer to in your post as the ‘queen’ is really The Queen.

    Hope that clarifies.

  • Mary

    In case you wondered why I mentioned Falconer.

    ‘Defeated Labour leadership candidate Andy Burnham is to be shadow home secretary in new leader Jeremy Corbyn’s first shadow cabinet.

    Hilary Benn will be shadow foreign secretary, while Lewisham MP Heidi Alexander takes the health brief.

    Lord Falconer will be shadow justice secretary. The new shadow chancellor has not been confirmed.

    Earlier, Chuka Umunna said he was leaving the Labour front bench by “mutual agreement”.

    Mary Creagh, shadow international development secretary, said she was also returning to the backbenches.

    Earlier, it was confirmed Rosie Winterton will continue as chief whip and Ian Murray will continue as shadow Scottish secretary.

    http://www.bbc.co.uk/news/uk-politics-34240869

  • Ishmael

    Anon1 13 Sep, 2015 – 9:58 pm

    Man that’s one twisted post. I think I get to not even entertain it.

  • RvH

    In his economic policy Corbyn has not yet deviated from the bounds of US authorized discourse. He has evidently been cloistered from the paradigm crisis that has discredited much academic macro theory. Some of his staff should get conversant with MMT, which would give him more policy options.

    http://neweconomicperspectives.org/modern-monetary-theory-primer.html

    Trained economists swallow enormous amounts of indoctrination to get their credentials. They’re apt to go on about discredited shite like IS/LM, the Taylor Rule, or budgetary constraints, whenever that furthers the obsessive cheese-paring for which they’re trained. Corbyn must be careful of the advisors they will try to foist on him. That’s the bankers’ first line of defense.

  • Ishmael

    “They want to make the conditions absolutely ripe for racism in an otherwise peaceful and tolerant country.”

    Fact is it seems some have been trying to do that very hard.

    Though there will be issues to deal with in this changing world in quite some turmoil, I breath a sigh of relief on that front now.

  • Macky

    I stand happily corrected by the BBC;

    “Labour says 15,500 new members have joined the party in the past 24 hours”

  • lysias

    Economics is the governing ideology of the current neoliberal regime. As much of a science as theology (for absolute monarchy) or Marxism-Leninism (for the Communist regimes) were.

    Greats, which I studied at Oxford, may have been what budding imperialists studied in the 19th and early 20th centuries, as PPE was to be the course of study for budding neoliberals. But classics promoted greater freedom of thought, as people like G.E.M. de Ste. Croix and Moses Finley showed. (Even if people like Piketty and Varoufakis show that economics scholars can also reject the reigning orthodoxy.)

  • lysias

    I must remember never again to capitalize the royal family, or the titles of its members. After all, as an Irish-American, surely I ought to be a republican.

  • RobG

    Michael Gove on this morning’s Marr Show, saying that Corbyn is the devil incarnate…

    https://www.youtube.com/watch?v=8iGCqcBjJug

    Actually, if Corbyn hadn’t been elected Labour leader yesterday, chances are that the UK Parliament would have voted this coming week for war in Syria.

    In his Marr interview, Gove refers to ISIS as fanatical mass murderers.

    Hmm…

  • bevin

    “So there seems to be a concerted effort by Fedup, Glenn and others to label me as a racist, presumably because I don’t fit in with the far-left desire to see the country swamped with endless migrants from an unending source…”

    Why, ‘Resident Dissident’, if you really don’t want masses of immigrants “swamping” the country, do you always support precisely those actions which make mass emigration so popular?
    You support the military campaigns in Iraq, Afghanistan, Libya, Syria and Yemen. These campaigns make life in those countries impossible for millions. They don’t want to leave home and take the enormous risks involved in migrations but they are left with no alternative. The politicians that you always support devote billions annually to bombing their cities, ruining their economies, dividing sects, who for centuries have lived together in peace and amity, into murderous factions.
    The truth is that the “far left,” as you call sensible people, has fought long and hard against the imperialist war policies which are driving people out of their homelands.
    If you had simply left Iraq, for example alone, and left Libyans to run their own affairs, if you were content not to interfere in Syria’s life and death struggle against wahhabi terrorism, and not to encourage the sly support being given to those terrorists by Saudi Arabia, Turkey, Qatar, Jordan and even Israel, there would not be millions of desperate people banging on Europe’s doors and demanding refuge from the evil we have visited upon them, their families and their homeland.
    It is very simple: if you burn down your neighbour’s house, there is a good chance he and the survivors of your crime will need refuge.

  • lysias

    Speaking of that Vela nuclear explosion in the Southern Hemisphere in 1979, YouKnowMyName’s link makes it clear that this was a part of Israel’s cooperation with apartheid South Africa in the development of nuclear weapons.

  • Anon1

    “Worse than that, Anon!.

    According to this weekend’s Le Monde, NO witnesses were herd for the defence.

    Le Monde also says that the trial took place over 71 sittings and in huis clos with neither the press nor representatives of human rights organisations being allowed to attend.”

    I suppose I was being charitable. I think Fedup is angry with me because I’ve upset his little picture-postcard view of Venezuela. There’s more in the current issue of Private Eye, “Letter from Caracas”. He should read it.

  • lysias

    In fact, although, as I say, I ought to be a republican, the romantic Irish nationalist in me would welcome the surely impossible event of a restoration of the Stuarts (note that I capitalize them; the Stuarts being extinct, a restoration would involve the Bavarian Wittelsbachs, the Stuarts’ heirs). What a revenge for both the Battle of the Boyne and of Culloden!

  • Anon1

    US$215bn diverted into foreign bank accounts. 48 percent of oil revenues siphoned into private bank accounts. That’s Socialism for you folks.

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