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Coronavirus - Part Two.

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1 hour ago, Funky_Gibbon said:

Something that people need to realise is that not a single penny of what the Government has spent has come from taxpayers. It's money that the Bank of England has created out of thin air to fund Government spending. Since the Government owns the BoE that is effectively owes money to itself and therefore it's not actually debt that needs to be paid off through taxation, ever. In normal times this might not be a sensible approach (although many argue differently) as it can lead to increased inflation rates but we're not in normal times, the UK rate of inflation is already close to 0% and the economists are actually more worried about inflation going negative, not growing.

 

https://positivemoney.org/2020/04/major-breakthrough-on-public-money-creation-the-bank-of-england-will-directly-finance-government-coronavirus-spending/

 

 

Basically, any arguments being made that claim we can't afford this or that are political arguments, not monetary.

Never heard such a load of rubbish in my life.

Why didn't we use that to counter the effects of the recession  then,  instead of having 10 years of Austerity?

Don't believe everything you read, especially if you read it on the internet.

To start printing more money is the quickest way to ruin your currency.

We have done it in a couple of emergencies but you have to be careful not to overdo it.

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2 hours ago, Organgrinder said:

Never heard such a load of rubbish in my life.

Why didn't we use that to counter the effects of the recession  then,  instead of having 10 years of Austerity?

Don't believe everything you read, especially if you read it on the internet.

To start printing more money is the quickest way to ruin your currency.

We have done it in a couple of emergencies but you have to be careful not to overdo it.

there are many articles in mainstream newspapers (e.g Guardian or Financial Times) about how all the covid bailout money was printed by BoE.

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I thought the lockdown started Saturday night, 1 minuet after midnight, but some seem to think its tomorrow night,  :huh:

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2 minutes ago, PRESLEY said:

I thought the lockdown started Saturday night, 1 minuet after midnight, but some seem to think its tomorrow night,  :huh:

00:01 Saturday morning.

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1 minute ago, nikki-red said:

00:01 Saturday morning.

Thankyou Nikki,  I thought I heard it right on PM's questions wednesday.

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3 hours ago, Organgrinder said:

Never heard such a load of rubbish in my life.

Why didn't we use that to counter the effects of the recession  then,  instead of having 10 years of Austerity?

I refer you to my previous statement about political arguments rather than monetary/economic ones. Austerity delivered everything the Conservative Party always wanted i.e. a smaller state, lower taxes for corporations, excuses for privatisation and public asset sales etc so they ran with it as hard as they could. It was never necessary, at least to severe extent they forced upon us. Nobody else on Earth followed the route back to growth that we did and most of them recovered far faster than us.

 

Even the Conservative Party publicly disavowed austerity back in 2018 as the best way to reduce debt/deficits when compared to public investment.

 

https://uk.reuters.com/article/uk-britain-economy-hammond/hammond-says-growth-not-budget-surplus-key-to-reduce-debt-idUKKCN1NA2JL

 

It's not a coincidence that the UK economy flatlined for the first few year after 2010 (having already recovered to low growth before the election) as a direct result of the Government imposing austerity and taking an axe to public sector spending.

 

When they announce sometime after this Covid crisis is over that we're going to have to tighten our belts (as Sunak has already hinted) to pay off our 'debt' just remember that not a penny of it is owed to anyone but ourselves and they're making the argument because it suits their ideology to do so.

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20 minutes ago, PRESLEY said:

I thought the lockdown started Saturday night, 1 minuet after midnight, but some seem to think its tomorrow night,  :huh:

friday night - saturday morning same difference

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23 minutes ago, Funky_Gibbon said:

I refer you to my previous statement about political arguments rather than monetary/economic ones. Austerity delivered everything the Conservative Party always wanted i.e. a smaller state, lower taxes for corporations, excuses for privatisation and public asset sales etc so they ran with it as hard as they could. It was never necessary, at least to severe extent they forced upon us. Nobody else on Earth followed the route back to growth that we did and most of them recovered far faster than us.

 

Even the Conservative Party publicly disavowed austerity back in 2018 as the best way to reduce debt/deficits when compared to public investment.

 

https://uk.reuters.com/article/uk-britain-economy-hammond/hammond-says-growth-not-budget-surplus-key-to-reduce-debt-idUKKCN1NA2JL

 

It's not a coincidence that the UK economy flatlined for the first few year after 2010 (having already recovered to low growth before the election) as a direct result of the Government imposing austerity and taking an axe to public sector spending.

 

When they announce sometime after this Covid crisis is over that we're going to have to tighten our belts (as Sunak has already hinted) to pay off our 'debt' just remember that not a penny of it is owed to anyone but ourselves and they're making the argument because it suits their ideology to do so.

I already know all the economic arguments you are stating and I also know that the Tories used the wrong tactics (as always) by using austerity but, that doesn't alter the fact that you still can't keep printing money to pay for the things you want to do (one reason why every government doesn't do that).

Real money is being used to buy services, to buy commodities, to pay salaries and the companies and people you are dealing with, won't accept  Monopoly money.

We are borrowing it and it will have to be paid back as we did when we paid for the 2nd World War.

Try handing pieces of paper to all your relatives and friends which says "Promise to pay the bearer £10" , for instance - what are you going to do when they all come back and ask for their £10 quids.

If it was that easy then every nation on the planet would be a rich one

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40 minutes ago, melthebell said:

friday night - saturday morning same difference

 No its not,  See what I mean another one thinks its 1 minuet after midnight fri,  actually its 1 min after midnight saturday night into sunday morning,  

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2 minutes ago, PRESLEY said:

 No its not,  See what I mean another one thinks its 1 minuet after midnight fri,  actually its 1 min after midnight saturday night into sunday morning,  

thats sunday then

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2 minutes ago, melthebell said:

thats sunday then

Correct.  :hihi:

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