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Post by Zany on Jun 17, 2024 19:45:03 GMT
Do any of you on here understand how this would work and can help us poor ignorant souls?
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Post by equivocal on Jun 17, 2024 20:22:45 GMT
Do any of you on here understand how this would work and can help us poor ignorant souls? There are two links explaining the idea in my last post on the Farage Talking Sense thread in the Westminster section. |
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Post by Zany on Jun 17, 2024 20:23:16 GMT
Do any of you on here understand how this would work and can help us poor ignorant souls? There are two links explaining the idea in my last post on the Farage Talking Sense thread in the Westminster section. Thanks |
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Steve
Hero Protagonist
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Post by Steve on Jun 17, 2024 20:46:00 GMT
He's proposing theft.
The banks have deposited money with the BoE because they have to and the contract is the BoE have to pay fair interest on it. Nigel 'likes to brag about his Coutts account but hates the banks' Farage wants to force the to leave the money there interest free.
The dimwits will fall for it
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Post by equivocal on Jun 17, 2024 20:52:57 GMT
He's proposing theft. The banks have deposited money with the BoE because they have to and the contract is the BoE have to pay fair interest on it. Nigel 'likes to brag about his Coutts account but hates the banks' Farage wants to force the to leave the money there interest free. The dimwits will fall for it The reserves were not deposited, they were created by the BoE through QE - link |
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Post by Zany on Jun 17, 2024 21:12:37 GMT
He's proposing theft. The banks have deposited money with the BoE because they have to and the contract is the BoE have to pay fair interest on it. Nigel 'likes to brag about his Coutts account but hates the banks' Farage wants to force the to leave the money there interest free. The dimwits will fall for it The reserves were not deposited, they were created by the BoE through QE - linkYes! that's the madness of this. |
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Post by equivocal on Jun 17, 2024 21:18:00 GMT
The reserves were not deposited, they were created by the BoE through QE - linkYes! that's the madness of this. I think it started that way because the first rounds of QE were put in place to bolster the banks after the GFC. I suppose if they'd thought it through, the QE to finance Covid could have been done in a different way. |
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Post by Zany on Jun 17, 2024 21:20:58 GMT
Yes! that's the madness of this. I think it started that way because the first rounds of QE were put in place to bolster the banks after the GFC. I suppose if they'd thought it through, the QE to finance Covid could have been done in a different way. But Rishi was Chancellor. Surely a man so good.......  |
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Post by equivocal on Jun 17, 2024 21:33:36 GMT
I think it started that way because the first rounds of QE were put in place to bolster the banks after the GFC. I suppose if they'd thought it through, the QE to finance Covid could have been done in a different way. But Rishi was Chancellor. Surely a man so good....... He was widely criticised for it when rates started going up but none of it seemed to stick. |
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Steve
Hero Protagonist
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Post by Steve on Jun 17, 2024 21:35:54 GMT
Yes! that's the madness of this. I think it started that way because the first rounds of QE were put in place to bolster the banks after the GFC. I suppose if they'd thought it through, the QE to finance Covid could have been done in a different way. They very much were deposited and are still there. That the source of the money was QE is irrelevant, the BoE demanded that the banks massively increase their reserves held at the BoE and still does require such. It all factors into the end interest rates financial institutions charge customers. Demand that money stays there with no interest paid would be theft AND would lead to significant increases in interest rates on loans and mortgages. Of course Farage having famously paid off his mortgage would care tuppence about the real people thrown into financial calmity by that nor would he care about the unemployment caused by those SME he pretends to care about driven into bankruptcy through higher interest rates. There is no free money Figure 1 here is informative www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2010/the-banks-balance-sheet-during-the-crisis.pdf |
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Post by Zany on Jun 18, 2024 7:22:48 GMT
I think it started that way because the first rounds of QE were put in place to bolster the banks after the GFC. I suppose if they'd thought it through, the QE to finance Covid could have been done in a different way. They very much were deposited and are still there. That the source of the money was QE is irrelevant, the BoE demanded that the banks massively increase their reserves held at the BoE and still does require such. It all factors into the end interest rates financial institutions charge customers. Demand that money stays there with no interest paid would be theft AND would lead to significant increases in interest rates on loans and mortgages. Of course Farage having famously paid off his mortgage would care tuppence about the real people thrown into financial calmity by that nor would he care about the unemployment caused by those SME he pretends to care about driven into bankruptcy through higher interest rates. There is no free money Figure 1 here is informative www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2010/the-banks-balance-sheet-during-the-crisis.pdfIs it theft or punishment for their careless and criminal actions that lead to the need to have greater securities. |
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Post by equivocal on Jun 18, 2024 8:11:51 GMT
I think it started that way because the first rounds of QE were put in place to bolster the banks after the GFC. I suppose if they'd thought it through, the QE to finance Covid could have been done in a different way. They very much were deposited and are still there. That the source of the money was QE is irrelevant, the BoE demanded that the banks massively increase their reserves held at the BoE and still does require such. It all factors into the end interest rates financial institutions charge customers. Demand that money stays there with no interest paid would be theft AND would lead to significant increases in interest rates on loans and mortgages. Of course Farage having famously paid off his mortgage would care tuppence about the real people thrown into financial calmity by that nor would he care about the unemployment caused by those SME he pretends to care about driven into bankruptcy through higher interest rates. There is no free money Figure 1 here is informative www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2010/the-banks-balance-sheet-during-the-crisis.pdfNo. The £750bn or so in question was not 'deposited'. It was created.
The point you make about interest rates is the same as my post in the Farage gets it right thread.
There is 'free money' but only, or so it seems, for the commercial banks.
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Steve
Hero Protagonist
Posts: 3,702
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Post by Steve on Jun 18, 2024 8:37:36 GMT
They very much were deposited and are still there. That the source of the money was QE is irrelevant, the BoE demanded that the banks massively increase their reserves held at the BoE and still does require such. It all factors into the end interest rates financial institutions charge customers. Demand that money stays there with no interest paid would be theft AND would lead to significant increases in interest rates on loans and mortgages. Of course Farage having famously paid off his mortgage would care tuppence about the real people thrown into financial calmity by that nor would he care about the unemployment caused by those SME he pretends to care about driven into bankruptcy through higher interest rates. There is no free money Figure 1 here is informative www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2010/the-banks-balance-sheet-during-the-crisis.pdfIs it theft or punishment for their careless and criminal actions that lead to the need to have greater securities. Oh dear that false trope again. Needs a dedicated thread. |
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Steve
Hero Protagonist
Posts: 3,702
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Post by Steve on Jun 18, 2024 8:42:33 GMT
They very much were deposited and are still there. That the source of the money was QE is irrelevant, the BoE demanded that the banks massively increase their reserves held at the BoE and still does require such. It all factors into the end interest rates financial institutions charge customers. Demand that money stays there with no interest paid would be theft AND would lead to significant increases in interest rates on loans and mortgages. Of course Farage having famously paid off his mortgage would care tuppence about the real people thrown into financial calmity by that nor would he care about the unemployment caused by those SME he pretends to care about driven into bankruptcy through higher interest rates. There is no free money Figure 1 here is informative www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2010/the-banks-balance-sheet-during-the-crisis.pdfNo. The £750bn or so in question was not 'deposited'. It was created.
The point you make about interest rates is the same as my post in the Farage gets it right thread.
There is 'free money' but only, or so it seems, for the commercial banks.
No because it had to be paid back and has been. As of 2019 only £27B was left to be paid back. fullfact.org/economy/1-trillion-not-spent-bailing-out-banks/ |
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Post by equivocal on Jun 18, 2024 9:05:28 GMT
No. The £750bn or so in question was not 'deposited'. It was created.
The point you make about interest rates is the same as my post in the Farage gets it right thread.
There is 'free money' but only, or so it seems, for the commercial banks.
No because it had to be paid back and has been. As of 2019 only £27B was left to be paid back. fullfact.org/economy/1-trillion-not-spent-bailing-out-banks/No, that's a separate issue. That article refers to the guarantees put in place and the 'bad bank' set up to deal with the GFC.
There were, in addition to the above, 'two' rounds of QE, the first to help the economy through the GFC and the second to help through Covid. The QE created the reserves for the commercial banks and on which the BoE, indemnified by the Government, pays interest to the commercial banks.
The first round was not a problem because the notional interest paid by the bonds purchased was higher than the interest which, before the second round, was only around £4bn pa. The second round increased the reserves less matured bonds took the total to around £750bn. With the interest rate increase and the increased reserves, the Government, thorough its BoE indemnity, is paying the banks around £35bn on reserves to the commercial banks, reserves they had no part in creating.
Here's the ERC article again - link |
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