Regarding your letter and comment Common sense and history both suggest a pause in QE and Essential to keep QE available, I am writing as the Organiser of the Forum for Stable Currencies which has been presenting meetings at the House of Lords and Commons since 1998. See our archive site.
I am also writing as a mathematician and systems analyst formerly at CERN, i.e. I have analysed not only the statistics of the Bank of England but also what “money” is and how it is created. Hence I cannot concur with Quantitative easing explained by the FT.
On Money as Debt also Known as Credit, I have published “Quantitative easing” to camouflage “printing credit” which is possibly the best explanation of what QE really is:
- The printing of “money as Credit” by the Bank of England or any other central bank.
The reason why QE can’t work is obvious to me:
- if the Treasury were to supply money, it would be free of interest (M0); therefore “printing money” would work
- “printing Credit” (M4) can’t work
- 97% of the money supply consists of Credit
- nobody creates the interest necessary to pay for Credit
- the Credit share in the total money supply is increased yet more
- the Cash : Credit ratio gets worse and worse.
Unfortunately, policy seems to be determined by the City and not by Westminster, i.e. the Bank of England and other central banks determine what happens to the global economy. For an excellent overview, you may want to view The Global Financial Crisis by professor of economics Michel Chossudovsky.
Should you be interested in reading more about “economics from a system analytical perspective”, here are a few of my links re quantitative easing:
- Four ways of “net credit creation”
- Quantitative easing for investors abroad
- Quantitative Easing in Wikipedia, or the Politics of Information and Contexts
- Common sense and history both suggest a pause in QE
- Money supply is in the air of the FT.
Since April I am looking after my mum “left of Berlin”. Thus I am now publishing in German what I learned in Westminster: www.NationaleSchulden.eu
Organiser, Forum for Stable Currencies, advocating Economic Democracy through Freedom from National Debt
Blogging on behalf of Voters and Taxpayers:
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