Economics

[despaer]

Can you imagine what £75Bn is going to do to the inflation rate once the big hole in the money supply officially announces it is closed? And can you imagine how long the UK will be paying off the debts from the money it has printed for? If I was cynical I might be tempted to believe that the government is intending to rely on a slab of inflation to

Comments

[aldric]

I understand that the process involves buying bonds by creating money and then eventually selling them back and deleting the money thus removing the extra cash. Presuming the timing is right wont that prevent the inflation problems?

[despaer]

It would if they did this by raising tax to stifle money supply and thus control inflation (and start repaying their debt). Hands up though, who thinks that whichever lot are in charge when the time comes will do the right thing and put the tax rates up and hands up who thinks they will take the populist route out and leave it to the BOE to raise interest rates thus absolving them of any responsibility?

I know what the correct economic response is but I bet whoever holds the keys at the time doesn't do it

[simoneck]

Debt, debt and more debt.
Running up this debt is easy, but someone is going to have to make some very tough decisions on public spending and taxes very very soon. It's very easy to be blase about the talk of hundreds of billions of pounds, until you see an actual effect on your wallet or on the public services you like.

I'd be interested in seeing the amount banks paid in tax over the last 20 years v the cost of bailing them out.

Governments with 4 year terms don't have much incentive to make difficult decisions for the long term.

Lets vary MP pensions yearly, based on a general happyness survey and the value of the british pound against a basket of currencies (as a crude measure of how well Britain is doing).