Britain is going to be Tory for at least 10 years.

[Brian Peacock]

While at the same time they have been vigorously shaking the magic money tree which is quantitative easing, that is; creating money by taking on more debt centrally and using that to extend low-yield loans to commercial banks, who in turn used it to extend loans to (and with that the indebtedness of) commercial banks (97% of QE).

QE isn't "taking on debt". It's new money, not borrowed money.

Where do you think this 'new money' comes from?

[Hermit]

While at the same time they have been vigorously shaking the magic money tree which is quantitative easing, that is; creating money by taking on more debt centrally and using that to extend low-yield loans to commercial banks, who in turn used it to extend loans to (and with that the indebtedness of) commercial banks (97% of QE).

QE isn't "taking on debt". It's new money, not borrowed money.

Where do you think this 'new money' comes from?

Printer.

[Brian Peacock]

[pErvinalia]

The GFC was over and done with in 2008.

God almighty, you do talk some shit.

You can't debate with that kind of crap.

Austerity retards growth. This is simple stuff.

Yes, and debts have to be repaid. I think that's the bit that you're missing.

The bit you're missing is that you have spend money to make money.

edit:

Of course, Greece and Ireland were right on your message. No austerity there. Marvellous growth there.
Great models for your wise fiscal planning.

Ireland has fuck all tax revenue because it has stupidly low tax rates. That's one half of how austerity always plays out. Greece had other problems, namely massive corruption at both the state and personal level.

Anyway, using your MM patented 1-point analysis, I can point to plenty of countries that didn't implement austerity, particularly Australia, that shat all over your growth rates. In fact, as I've said many times before, Australia was the only advanced economy not to go into recession during the GFC.

edit:

[pErvinalia]

While at the same time they have been vigorously shaking the magic money tree which is quantitative easing, that is; creating money by taking on more debt centrally and using that to extend low-yield loans to commercial banks, who in turn used it to extend loans to (and with that the indebtedness of) commercial banks (97% of QE).

QE isn't "taking on debt". It's new money, not borrowed money.

Where do you think this 'new money' comes from?

It's created into existence with a metaphorical pen stroke. It's not loaned. That's the point with QE.

[Brian Peacock]

While at the same time they have been vigorously shaking the magic money tree which is quantitative easing, that is; creating money by taking on more debt centrally and using that to extend low-yield loans to commercial banks, who in turn used it to extend loans to (and with that the indebtedness of) commercial banks (97% of QE).

QE isn't "taking on debt". It's new money, not borrowed money.

Where do you think this 'new money' comes from?

It's created into existence with a metaphorical pen stroke. It's not loaned. That's the point with QE.

And how is it paid for?

[pErvinalia]

It's not paid for. Learn what the concept is. I'd explain it to you, but past experience suggests you are never wrong, so you wouldn't accept it anyway.

[Brian Peacock]

It's not paid for. Learn what the concept is. I'd explain it to you, but past experience suggests you are never wrong, so you wouldn't accept it anyway.

Rewind. I said that QE involves taking on debt, which it does. You've just assumed I meant borrowing, which I didn't.

And of course QE is paid for - it's not free money.

[Hermit]

It's not paid for. Learn what the concept is. I'd explain it to you, but past experience suggests you are never wrong, so you wouldn't accept it anyway.

Peacock is just trolling you now. He's seen the John Clarke & Bryan Dawe clip above and bloody well understands exactly how it's done.

[Hermit]

It's not paid for. Learn what the concept is. I'd explain it to you, but past experience suggests you are never wrong, so you wouldn't accept it anyway.

Rewind. I said that QE involves taking on debt, which it does. You've just assumed I meant borrowing, which I didn't.

And of course QE is paid for - it's not free money.

Stop trolling already, Brian. For crying out loud, you know how easy it is to set rEv off.

Monetary financing

Quantitative easing has been nicknamed "printing money" by some members of the media,central bankers, and financial analysts. Stephen Hester, chief executive officer of the RBS Group, said:

"What the Bank of England does in quantitative easing is it prints money to buy government debt, ... So the Quantitative Easing has enabled governments, this government, to run a big budget deficit without killing the economy because the Bank of England has financed it."

The Dutch Central Bank itself sees QE as being a money creation operation:

The Eurosystem directly injects money into the economy by purchasing the bonds with newly created electronic cash. This is called quantitative easing.

[Brian Peacock]

It's not paid for. Learn what the concept is. I'd explain it to you, but past experience suggests you are never wrong, so you wouldn't accept it anyway.

Rewind. I said that QE involves taking on debt, which it does. You've just assumed I meant borrowing, which I didn't.

And of course QE is paid for - it's not free money.

Stop trolling already, Brian. For crying out loud, you know how easy it is to set rEv off.

Yeah, but what about his emails?

[Hermit]

It's not paid for. Learn what the concept is. I'd explain it to you, but past experience suggests you are never wrong, so you wouldn't accept it anyway.

Rewind. I said that QE involves taking on debt, which it does. You've just assumed I meant borrowing, which I didn't.

And of course QE is paid for - it's not free money.

Stop trolling already, Brian. For crying out loud, you know how easy it is to set rEv off.

Yeah, but what about his emails?

Oops. I forgot about them. Sorry.

Carry on, then, but don't forget to turn off the printers before you go home. They'll overheat, and then we won't be able to print the next trillion dollar job lot scheduled for Monday.

[mistermack]

QE is free money for some :

Critics frequently point to the redistributive effects of quantitative easing. For instance, British Prime Minister Theresa May openly criticized QE in July 2016 for its regressive effects: "Monetary policy – in the form of super-low interest rates and quantitative easing – has helped those on the property ladder at the expense of those who can't afford to own their own home."[105] Dhaval Joshi of BCA Research wrote that "QE cash ends up overwhelmingly in profits, thereby exacerbating already extreme income inequality and the consequent social tensions that arise from it".[106] Anthony Randazzo of the Reason Foundation wrote that QE "is fundamentally a regressive redistribution program that has been boosting wealth for those already engaged in the financial sector or those who already own homes, but passing little along to the rest of the economy. It is a primary driver of income inequality".[106]
Those critics are partly based on some evidence provided by central banks themselves. In 2012, a Bank of England report[107] showed that its quantitative easing policies had benefited mainly the wealthy, and that 40% of those gains went to the richest 5% of British households.[106][108]

The banks often use it to invest abroad, especially in commodity producers like Australia.
There's no restriction on where it goes.

[Brian Peacock]

As I said, the 'free money' forwarded up the banks is turned into stagnant assets rather than driving he productive economy.

[pErvinalia]

It's not paid for. Learn what the concept is. I'd explain it to you, but past experience suggests you are never wrong, so you wouldn't accept it anyway.

Rewind. I said that QE involves taking on debt, which it does. You've just assumed I meant borrowing, which I didn't.

The equivocation is strong in this one... It's not debt. 97% of money is borrowed into existence via commercial banks. That's debt. QE is created interest free.

And of course QE is paid for - it's not free money.

Rubbish. Who gets paid back? Where does one pay it back? It is literally free money. You are making a faulty assumption that throwing a lump of free money into an economy has a negative impact (and hence "costs" something). It can have a negative impact, but in the vast majority of cases it pumps an economy and generates wealth. It's a FAR better model than loaning money into existence as a compounding debt.