Quote:
Originally Posted by jfman
Feel free to continue to ignore reality as you wish, however you cannot simply be offensive and dismiss the post as “complete bollocks” without any evidence whatsoever.
Another subscriber to the fallacy that Government budgets are somehow equivalent to household budgets. You do realise that this money doesn’t physically exist - there’s no pot of gold you can walk into the Bank of England and claim? It’s created and introduced into the economy, and just as easily rremoved, by the touch of a button on spreadsheets.
You have ignored the important role of Central Banks in increasing money supply and underwriting the Government position as a lender of last resort. I can’t meaningfully say any more than that and if you want to dismiss that as “complete bollocks” instead of engage with the subject then I can’t help you.
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I’ll keep you off ignore for as long as I can stand it.
1. Governments raise capital by selling government bonds.
2. Investors buy the bonds expecting a return on their investment.
3. Governments need an income from taxation to repay those bonds.
4 in order to have an income from taxation they need to have a functioning economy with individuals and companies paying tax on the money they earn.
5. Printing money, quantitative easing, is an option available to central banks to inject into the economy or use to buy government bonds as a Lender of last resort.
6. Printing money can* cause inflation. * not always, in a global recession Like 2008 it is unlikely, however this isn’t 2008, and there is no knowing yet what the global reaction to this will be if we’re happily printing bank notes like confetti and no else is...............
7. Inflation can affect the value of Government bonds Making them less attractive and forcing the government to offer higher interest rates.
8. Blah blah hyper- inflation, currency devaluation and death.
Here are some simple explanations
https://www.economicshelp.org/blog/6...rinting-money/
https://www.economicshelp.org/blog/8...and-inflation/
Your belief that Money is something intangible and can just be created without consequence is bizarre.