agentundercover
Active Member
A sad day when I turn to an Ibiza forum for help on macroeconomics!
Can anyone help me get my head around darling browns potential printing of more money? Morbs?
So, bank of england prints more money.
how does it get this into the system? By loaning it out to the main banks presumably? so is there a limit to the amount that the clearing banks can lend from the bank of england at the moment?
and this then enables them to start lending to people and businesses again?
surely, ultimately, the five pound note in my pocket has an underlying value that has been created by the resources around us - it represents barter. if we just print more, without increasing the inherent resources, we just reduce the value of the five pound notes in existence?
so it will be easier to get our hands on the money as there will be more, but inflation will be almost immediate?
do i have a clue? help me someone! i've googled and it does not get to the core of the issue.
Can anyone help me get my head around darling browns potential printing of more money? Morbs?
So, bank of england prints more money.
how does it get this into the system? By loaning it out to the main banks presumably? so is there a limit to the amount that the clearing banks can lend from the bank of england at the moment?
and this then enables them to start lending to people and businesses again?
surely, ultimately, the five pound note in my pocket has an underlying value that has been created by the resources around us - it represents barter. if we just print more, without increasing the inherent resources, we just reduce the value of the five pound notes in existence?
so it will be easier to get our hands on the money as there will be more, but inflation will be almost immediate?
do i have a clue? help me someone! i've googled and it does not get to the core of the issue.