Money Supply Help!

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.
 
Read that Darlings not going to do that!
Interest Rates down to 1.5%, should help the inflation to continue falling!
The Euro now weakening, which is good news!
 
I have had similar discussions, I wanted to know how/who the USA had borrowed an amount I cant spell a little while ago, Who does the (so called) richest most powerful country borrow money off ?
The conclusion I came to was they print more, Then borrow it off themselves, I tried this, myself but I was arrested when I tried to spend it :lol: But hey I am not in government, different rules for them.
Have a good one
Tim
 
I have had similar discussions, I wanted to know how/who the USA had borrowed an amount I cant spell a little while ago, Who does the (so called) richest most powerful country borrow money off ?
The conclusion I came to was they print more, Then borrow it off themselves, I tried this, myself but I was arrested when I tried to spend it :lol: But hey I am not in government, different rules for them.
Have a good one
Tim

i think the government lends the money off insitutions such as banks or the 'money markets' via issuing bonds. basically government says to hsbc i'll pay you 5% on a squillion quid.

problem comes when it defaults, as happened for say argentina, on the 5%.

you look at how much we will owe as a country & wonder how the 5% is raised.

and at last resort, when no one will lend any more to the country, the IMF can step in and lend. although they usually demand changes to the economy.

HOWEVER (!) i think this is different to printing money. i think.
 
from what i understand, if you print money, theres a risk it drives up inflation.

Thats what mugabe has done in Zimbabwe.

http://en.wikipedia.org/wiki/Inflation


As I understand it, there's not a risk it'll drive up inflation. It does drive up inflation, however as the inflationary rate (the amount they tell you it is) is now run by the government and not the BOE, and they surprisingly lie about it did anyone actually believe it was 2%????

Basically, if you put more money into the system the money already there eventually loses its value and therefore everything costs more.
 
the danger with producing more money is that it can seriously destabilise the economy

the government are banking everything on a consumer-led recovery in the high street, heavily dependent on cheap foreign-made goods...

ie a weak neo-keynsian macro-economic strategy which has no guarantee of stimulating growth. However, it seems to be the only option available at the moment and the Conservatives have even less of a clue about what to do... :rolleyes:

the reason I think the euro will remain strong against sterling is that the other major EU states like Germany didn't see their economies grow on the back of cheap credit and volatile property markets. They actually retain a strong manufacturing base which is why they are more insulated than us against the recession. Food for thought...
 
have you seen zeitgeist.

essential viewing about this issue.

(btw - there is nothing in law that requires US citizens to pay income tax, so many former IRS agents don't bother anymore)
 
zeitgeist is a good watch.

some say very one-sided, but very interesting.

it is i think, the trouble is, the issues it tackles (apart from 9/11) are so ingrained into our consciousness that you almost despair at the level of deception.

the fed one is a sickener tho. the income tax thing made me chuckle though..........so to all our US readers, you don't have to pay it!!

hello you btw, love from mr. disrespectin ma be-atch;):p
 
it is i think, the trouble is, the issues it tackles (apart from 9/11) are so ingrained into our consciousness that you almost despair at the level of deception.

the fed one is a sickener tho. the income tax thing made me chuckle though..........so to all our US readers, you don't have to pay it!!

hello you btw, love from mr. disrespectin ma be-atch;):p

Agreed. I know a couple of people who quit watching it in the middle because it challenged their beliefs too much.

anyway.. no more violatin' ;)
 
(btw - there is nothing in law that requires US citizens to pay income tax, so many former IRS agents don't bother anymore)
Not true... there is nothing in the Constitution about income tax.
You are required by law to file an income tax return each year and to pay taxes. Tax evasion is punishable by jail time, although usually they'll just take all your stuff.
 
Not true... there is nothing in the Constitution about income tax.
You are required by law to file an income tax return each year and to pay taxes. Tax evasion is punishable by jail time, although usually they'll just take all your stuff.

so explain the IRS agents who don't bother........

how did i know you'd pop up!!:lol:;)
 
Grego, where did you get this info then?? Have you got any tinfoil-hat websites with a link to this scam?
 
here ya go kids, see these videos.

if anyone wants proof of the hope obama brings, it is that now some of the more worrying points in here are outdated (such as iraq)

the bit about not paying tax is on video 2 from 3.50

1 - http://www.youtube.com/watch?v=dpHp_deaBs8&feature=related
2 - http://www.youtube.com/watch?v=CoHyjZvxGkU&feature=related
3 - http://www.youtube.com/watch?v=2kd169qLGRk&feature=related
4 - http://www.youtube.com/watch?v=rXZ4xYP53DY&feature=related
5 - http://www.youtube.com/watch?v=xSBU0rtt1Vg&feature=related
 
here ya go kids, see these videos.

if anyone wants proof of the hope obama brings, it is that now some of the more worrying points in here are outdated (such as iraq)

the bit about not paying tax is on video 2 from 3.50

1 - http://www.youtube.com/watch?v=dpHp_deaBs8&feature=related
2 - http://www.youtube.com/watch?v=CoHyjZvxGkU&feature=related
3 - http://www.youtube.com/watch?v=2kd169qLGRk&feature=related
4 - http://www.youtube.com/watch?v=rXZ4xYP53DY&feature=related
5 - http://www.youtube.com/watch?v=xSBU0rtt1Vg&feature=related

nice one :)
 
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