Category Archives: Price inflation

OVERT MONETARY FINANCING or ‘Helicopter Money’ Policies – Lord Turner is waking up?


Anatole Kaletsky
writes about the 46-page speech that Lord Turner, Chairman of Britain’s Financial Services Authority gave at the Cass Business School on 6th February 2013.

Positive Money writes Adair Turner tumbles to the merits of a Positive Money idea.

In 2008, I had been advised by a human rights lawyer to ‘go for Parliamentary scrutiny via the Treasury Select Committee‘. Since the Treasury Select Committee had just announced their inquiry into climate change, we submitted Green Credit for Green Purposes.

Since 2002, Austin Mitchell MP has been tabling Early Day Motions to address exactly this: ‘overt monetary financing’ – but under a different label: public credit.

You can really tell from this speech how “the Religion of Money” has won over the Lost Science of Money, as men struggle with: whom to follow and whether to be for or against the ‘current consent’:-

  • a virtually surefire method of stimulating economy activity exists today and that politicians and central bankers can no longer treat it as taboo: ‘newly created money should be handed out to the citizens or governments;
  • distribute free money to end deep recessions;
  • quantitative easing for the people;
  • overt monetary financing (OMF) or “helicopter money” as ‘permanent monetisation of government debt and ‘extreme option’ in ‘extreme circumstances’.

Strangely, Lord Turner associates ‘inflationary risks’ and ‘printing money’ with Germany: the Bundesbank, Goethe’s Faust and the devil itself: Mephistopheles. Continue reading

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Unit of Real Value: the Yardstick with which to stabilise price inflation

This is an interesting story about Brazil, vouched to be correct by a commentator who lived in Brazil at the time.

The “Unit of Real Value” acts as an extra and REAL measure and thus provides a real and stable yardstick in a sea that wobbles with ‘credit money‘ and ‘interest money’ – unrelated to any real value.

The smart aspect is the fact that ‘monetary inflation’ is separated from ‘price inflation’, and the financial economy is separated from the real economy. And ‘economics’ becomes real rather than a ‘soft, sociological science’…

Who else might copy this model that worked???

Common sense and history both suggest a pause in QE

QE means Quantitative Easing. It means Central Banks printing money. But their kind of money is Credit Money, i.e. somebody receives interest payments, and taxpayers pay via the Government’s share in the budget of “public debt interest payments”.

This letter in the FT prompted me to spell it out, once again:

When Governments print money, it’s “Cash Money” which is not only free of interest, but also gives them seigniorage as income.

However, creating money electronically out of thin air would not justify seignorage. But why do Governments hand their power of creating money over to their Central Banks?

Your guess about politicians and central bankers is as good as mine…

My response to Mr George Taferner is this:

Continue reading

The Fed plans monetary inflation

This article is excellent as it makes the distinction between price inflation and monetary inflation.

And it reveals the true colours and intentions of the Fed.

I found it on this premier political community blog saying that apparently the Bank of England is taking its cue from the Fed.

What else is new?…