Thursday, October 20, 2011

Quantitative easing is bullshit

So I've heard this term quantitative easing bandied around.

It's that thing where the government prints a load of extra cash so there's more money floating round in the system and that'll fix stuff.
"Cool." I thought. "That's that sorted."

It was done before. Gordon Brown started in 2009, and... and... what happened last time?
Did it make things better?
Naw.
Less worse than they would have been? I dunno.
200 billion quid so far.
There's an extra £200 billion in the system is there? Where?
£200 000 000 000?
The population of this country is a bit more than 60 million
2 billion divided by 60 million is 3333.33
£3333.33 each for every man woman and child in the country.
Rounding down loads, that's 12 grand for a family of four.

So people didn't get it. I would have noticed an extra 12 grand in the house.
(Unless the wife cashed the cheque without telling me.)

It goes to the banks doesn't it... Sweet.

We know now that money is lighter than air. trickle down economics doesn't work.
There's two sorts of money. There's up there money, and down here money.
Down here money is earnt and spent by us.
Up there money is the stuff bankers and traders throw around like confetti.
They throw it back and forth between each other.
It goes on big salaries and big in bonuses, that kind of thing. (Maybe a local builder might get some of it if a banker gets his driveway block paved)

Now the government is going to quantitativly (?) ease a further £75 000 000 000 at the banks?
Or you could give every man woman and child in the country £1250.

Down here money that wouldn't be thrown around the world in deals and trades up there.
It would be spent down here on the street in shops.



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