Steve
Hero Protagonist
Posts: 3,702
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Post by Steve on Jun 18, 2024 10:06:23 GMT
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Post by equivocal on Jun 18, 2024 10:20:32 GMT
I'm afraid you're not comparing like with like.
I don't imagine many with a reasonable level of common sense will take Reform's 'manifesto' seriously.
EDIT:- How about the Treasury Committee link
Under quantitative easing, the Bank of England created £895 billion of new money in the form of central bank reserves held by commercial banks, of which around £700 billion remains in circulation. The Bank pays interest on those reserves at Bank Rate, currently 5.25%. This has generated considerable income for banks as a result of the sharp increase in interest rates since 2021. The Treasury is ultimately liable for these payments as it indemnifies the QE programme.
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Steve
Hero Protagonist
Posts: 3,702
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Post by Steve on Jun 18, 2024 12:03:26 GMT
Saw that link earlier. Totally destroys Farage's figures doesn't it.
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Post by Zany on Jun 18, 2024 12:34:11 GMT
Is 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. Possibly. But strange how they find Lloyds for rigging the Libor rate between 2008 and 2010. Nothing to do I'm sure with the collapsing subprime mortgages that were being bundled and shipped around. This sums it up nicely www.investopedia.com/terms/g/great-recession.aspThough many blame governments for not stopping the fraudsters and thieves , that does make the fraudsters and thieves innocent. |
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Steve
Hero Protagonist
Posts: 3,702
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Post by Steve on Jun 18, 2024 12:50:03 GMT
The main banks went to Brown c 2002 and told him that if he and the BoE continued to allow the new reckless banks to carry on with idiot loans then they would have two choices: copy them or go out of business. Brown effectively said copy them - well he needed that idiot boom to make sure he'd get to be Prime Minister post 2005.
More than most, the government of the day created the crisis.
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Post by equivocal on Jun 18, 2024 13:33:14 GMT
Saw that link earlier. Totally destroys Farage's figures doesn't it. There is no doubt that the banks, more properly MFIs (organisations with a banking licence), are receiving £35bn or thereabouts on reserves created through QE.
The problem, besides the ones we've already mentioned, is that Reform's £35bn disappears as QT moves through the system. Reform's 'solution' is to have no QT and to avoid any reduction in the the value of bonds in issue through redemption, they propose converting the bonds bought during the QE periods to Covid bonds with no redemption date - aka a helicopter drop of £700bn.
A recent article in the FT reckons that would make it virtually impossible for the MPC to set meaningful interest rates as a means of controlling a slowing or overheating economy. link
We struggle to understand how the MPC will be able to set interest rates in a world without reserve tiering, reserve scarcity or any payments of interest on reserves. If you do, please get in touch.
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Post by Zany on Jun 18, 2024 13:35:33 GMT
The main banks went to Brown c 2002 and told him that if he and the BoE continued to allow the new reckless banks to carry on with idiot loans then they would have two choices: copy them or go out of business. Brown effectively said copy them - well he needed that idiot boom to make sure he'd get to be Prime Minister post 2005. More than most, the government of the day created the crisis. So the thieves are not thieves because no one stopped them. Incidentally how was Brown supposed to stop international banks lending in Americas sub prime markets? |
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Steve
Hero Protagonist
Posts: 3,702
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Post by Steve on Jun 18, 2024 23:35:31 GMT
As i said needs a dedicated thread on the banking crisis where I will destroy that false insinuation.
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Post by Zany on Jun 19, 2024 6:33:42 GMT
As i said needs a dedicated thread on the banking crisis where I will destroy that false insinuation. Think I'd get bored Steve. You'd post complicated tables. I'd post scholarly articles concluding the banks are the thieves and vagabonds we all know they are.  |
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Steve
Hero Protagonist
Posts: 3,702
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Post by Steve on Jun 19, 2024 19:55:26 GMT
No apologies from me if factual data distresses you
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Post by Zany on Jun 19, 2024 19:59:25 GMT
No apologies from me if factual data distresses you Facts can be presented in such a way as to mislead, yet still be facts. |
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Steve
Hero Protagonist
Posts: 3,702
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Post by Steve on Jun 19, 2024 20:01:59 GMT
Yes Nigel Farage does do that
Did you notice he talked about 'the banks' as if they were a monolith? Fooled a lot of people though. Fact is several of the banks didn't take a penny in bank bailouts but Farage wants to steal money from them.
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Post by equivocal on Jun 19, 2024 20:27:28 GMT
Yes Nigel Farage does do that Did you notice he talked about 'the banks' as if they were a monolith? Fooled a lot of people though. Fact is several of the banks didn't take a penny in bank bailouts but Farage wants to steal money from them. What has Farage been saying about the bail out?
Old news, I would have thought.
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Steve
Hero Protagonist
Posts: 3,702
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Post by Steve on Jun 19, 2024 21:47:04 GMT
He said he would still require them to deposit £700B at the Bank of England just not pay any interest on that and alludes that the money was given to the banks - it wasn't. How would you like it if someone demanded you deposit a huge chunk of your money in the BoE and not pay interest. You'd be screaming 'theft' and rightly so.
If this so called free money was available why do you think chancellor after chancellor hasn't taken it (and the idea has been mentioned a number of times)? because it's immoral and fuckwittery that's why.
And as ever his numbers don't actually add up and the Bank of England governor says it would just raise interest rates for people and businesses which would of course force many of both into bankruptcy.
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Post by Zany on Jun 20, 2024 6:48:29 GMT
He said he would still require them to deposit £700B at the Bank of England just not pay any interest on that and alludes that the money was given to the banks - it wasn't. How would you like it if someone demanded you deposit a huge chunk of your money in the BoE and not pay interest. You'd be screaming 'theft' and rightly so. If this so called free money was available why do you think chancellor after chancellor hasn't taken it (and the idea has been mentioned a number of times)? because it's immoral and fuckwittery that's why. And as ever his numbers don't actually add up and the Bank of England governor says it would just raise interest rates for people and businesses which would of course force many of both into bankruptcy. There was free money, it just wasn't infinite. |
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