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As the financial situation gets bleaker and bleaker in the UK, and the black hole of financial resources gets bigger, the government pushes through emergency measures to combat the money strain.
Quantative Easing, as the government have described it, seems like a made up term and it probably is made up due to the seriousness of the crisis and the fact nothing like this has ever been seen before.
We are all meant to believe that the people in Whitehall and Downing Street who operate in the very highest levels of government and strategic financial advisors to the PM actually know what they are doing. The fact of the matter is that quite clearly they do not have a clue.
Quantative Easing is the creation of new money by the Bank of England, and its injection into the banking system. It is the term used to describe printing money. What this does, it expand the total amount of money in the country. Money is now created electronically, instead of actually being printed. The aim is to increase the amount of deposits in private banks so that they can increase the money supply by increasing debt (lending).
As ministers prepare to inject 150 billion into the economy, they are being warned that they are playing a dangerous game.
The Bank of England is expected to receive a letter from the Chancellor Alastair Darling shortly giving permission to go ahead with the move.
The Banks monetary policy committee which decides interest rates has been in favor of the move. This involves printing money in an attempt to beat recession.
Inflation has fallen to a 49 year low to 3.1 per cent, but the big concern is that by introducing money into the economy it could drive up inflation too quickly.
Quantative Easing will involve buying bonds from blue chip companies, banks and insurance companies. The theory is that this will increase the amount of money sloshing around the economy and it will encourage banks to lend to businesses, homebuyers and other customers.
A meeting last month of leading bank officials revealed that they believe the government is taking these drastic steps to increase the money flow because it is the only tool left that could have an impact on whether the banks start lending again. Whatever the thoughts and logic behind their thinking, it is clearly a very dangerous situation for this country and one which will not be sorted out quickly.
After the IMF gain control of our economy in 2011, it is safe to say that we will already have started on the road to total financial meltdown and destruction. Only now can we guess what this means for our country, our independence and more importantly our future as citizens of this planet as we helplessly stand by and watch the worlds economies fall into total destruction.
Quantative Easing, as the government have described it, seems like a made up term and it probably is made up due to the seriousness of the crisis and the fact nothing like this has ever been seen before.
We are all meant to believe that the people in Whitehall and Downing Street who operate in the very highest levels of government and strategic financial advisors to the PM actually know what they are doing. The fact of the matter is that quite clearly they do not have a clue.
Quantative Easing is the creation of new money by the Bank of England, and its injection into the banking system. It is the term used to describe printing money. What this does, it expand the total amount of money in the country. Money is now created electronically, instead of actually being printed. The aim is to increase the amount of deposits in private banks so that they can increase the money supply by increasing debt (lending).
As ministers prepare to inject 150 billion into the economy, they are being warned that they are playing a dangerous game.
The Bank of England is expected to receive a letter from the Chancellor Alastair Darling shortly giving permission to go ahead with the move.
The Banks monetary policy committee which decides interest rates has been in favor of the move. This involves printing money in an attempt to beat recession.
Inflation has fallen to a 49 year low to 3.1 per cent, but the big concern is that by introducing money into the economy it could drive up inflation too quickly.
Quantative Easing will involve buying bonds from blue chip companies, banks and insurance companies. The theory is that this will increase the amount of money sloshing around the economy and it will encourage banks to lend to businesses, homebuyers and other customers.
A meeting last month of leading bank officials revealed that they believe the government is taking these drastic steps to increase the money flow because it is the only tool left that could have an impact on whether the banks start lending again. Whatever the thoughts and logic behind their thinking, it is clearly a very dangerous situation for this country and one which will not be sorted out quickly.
After the IMF gain control of our economy in 2011, it is safe to say that we will already have started on the road to total financial meltdown and destruction. Only now can we guess what this means for our country, our independence and more importantly our future as citizens of this planet as we helplessly stand by and watch the worlds economies fall into total destruction.
Quantative What?
And does this mean we are going to give the banks even more money?
