tag:blogger.com,1999:blog-6214838.post1414336496070996548..comments2024-03-04T17:54:32.559+00:00Comments on Iain Dale's Diary: Printing Money is the Economics of Robert MugabeIain Dalehttp://www.blogger.com/profile/03270146219458384372noreply@blogger.comBlogger43125tag:blogger.com,1999:blog-6214838.post-54322539402843012762009-03-06T13:06:00.000+00:002009-03-06T13:06:00.000+00:00No, no, no - ZaNu PF politicians are corrupt. They...No, no, no - ZaNu PF politicians are corrupt. They steal from the public purse. <BR/>They force everyone into joblessness.<BR/>They create a worthless currency.<BR/>They have no idea how to run an economy.<BR/>They are only in it for themselves.<BR/>They don't care one iota for the poor on the streets (having created most of them with their lousy economics).<BR/>They promote their cronies into positions of power and wealth.<BR/><BR/><BR/><BR/>OH, OK, yes, I see what you mean......Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6214838.post-78290749180358971502009-03-06T12:39:00.000+00:002009-03-06T12:39:00.000+00:00Various economic commentators are supporting it or...Various economic commentators are supporting it or at least saying that there is no other option. <BR/><BR/>Plain fact is we are in uncharted territory - low interest rates ought to start the economy but as banks have no money they are useless.<BR/><BR/>I wonder why we need interest rate so low if we are going ahead and printing money - surely higher interest rates would head off future inflation. <BR/>This is the future problem which we do not know if we will be able to solve - will we grow addicted to inflation?<BR/><BR/>But I write to point out that Cooper told a porkie on Newsnight last night.<BR/><BR/>She said 'of course this is being done by the bank of England which is independent'. <BR/>Well if she is trying to distance herself from it now - she cannot be confident. But she well knows that the BoE has had to ask the Treasury permission so this is very much a government initiative.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6214838.post-34539744411566179062009-03-06T11:27:00.000+00:002009-03-06T11:27:00.000+00:00we aren't really in deflation at all. Look at the ...we aren't really in deflation at all. Look at the underlying change in prices for RPI and you'll see that prices are still rising for everything except fuel and housing. As soon as housing bottoms out (who knows what oil will do) there will be a massive rise in inflation spurred on by the huge amounts of money being thrown into the system.Doughttps://www.blogger.com/profile/10611938286584363712noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-5811061056277309032009-03-06T10:50:00.000+00:002009-03-06T10:50:00.000+00:00"Britain might find itself emerging quickly from t..."Britain might find itself emerging quickly from the crisis and straight into a new era of rising inflation. On the day the Bank of England announced plans to pump £75bn into the economy, Mr Cable warned that this expansion could fuel a return to “old-style boom and bust” unless it were handled with extreme caution."<BR/>Vince Cable in the FTDavid Coxhttps://www.blogger.com/profile/03074466074735623957noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-89733731129901551852009-03-06T10:43:00.000+00:002009-03-06T10:43:00.000+00:00Time to buy a few shares in Chillingtons, methinks...Time to buy a few shares in <A HREF="http://www.chillingtonbarrows.co.uk/" REL="nofollow">Chillingtons</A>, methinks!MikeyPhttps://www.blogger.com/profile/02628881766409720006noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-55344608077897725302009-03-06T09:56:00.000+00:002009-03-06T09:56:00.000+00:00You won't get any argument from me about this. I'...You won't get any argument from me about this. I've been saying it for months.<BR/>www.blog.stevetierney.orgSteve Tierneyhttps://www.blogger.com/profile/16189511711594171958noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-10466055266453631352009-03-06T09:52:00.000+00:002009-03-06T09:52:00.000+00:00Quantitative easing and the opposite i.e. quantita...<I>Quantitative easing and the opposite i.e. quantitative tightening are constants in all our economies. Whoever is in the political ascendancy these things are required from time to time.</I><BR/><BR/>This is gibberish. I love the way that people no-one would trust to sit the right way round on toilet seat think they are macro economic gurus <BR/><BR/>As a macro economic guru I fear thuis is apolitically motivated move designed to defer the worst until after the election and engineer a small boom. Old style politics its efficacy otherwise is small one way or the other.<BR/><BR/>This is the hard drugs of Policy. Quick hit now and you are stuck with it for years . Yet again Brown borrow from tomorrow to pay for today and I go with my gut <BR/><BR/>ITS WRONGNewmaniahttps://www.blogger.com/profile/11922161971821380803noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-89498770883235471292009-03-06T09:41:00.000+00:002009-03-06T09:41:00.000+00:00What a fantastic idea, only the great helmsman cou...What a fantastic idea, only the great helmsman could dream up such a fabulous cunning plan!<BR/>Its the pot of gold at the end of the rainbow, its the magic purse of gold that is always full no matter how much you spend!<BR/>Only a sumpreme superbeing could create such genius, we never run out of money because Brown has invented magic money, just watch in awe as Brown creates hundreds of billions in magic money, we will all be rich beyond our wildest dreams, we keep spending and Browns golden goose keeps on laying, who needs manufacturing industries/exports/savings/fiscal discipline/restraint we an all go out and spend the new Browngold and buy everything we can dream of, its like we all just win the lotto every day!<BR/>Everyones a winner with magic Brownmoney, I mean what can possibly go wrong? The BoE is a money tree orchard, its the answer to the old desire to turn base metal into gold, what a genius Brown is, why has nobody thought to do this before, perhaps we can all print more cash as and when we need it, need a joliday to the sun? need a new plasma TV or new kitchen? just print off a bundle of cash on the printer and hey presto just like magic we can all have everything we need whenever we want it, no need to work hard and save is there?<BR/>Wow! what can possibly go wrong? this cunning plan is sheer genius and the do nothing Tories can only talk about fiscal discipline/hard work/restraint, yuuuuk, who needs old fashioned common sense and prudence when Brown has invented the holy grail of endless free cash!<BR/>For thousands of years the finest brains have grappled with and failed to invent magic cash, when brown just comes with it instantly in his gigantic brain.<BR/><BR/>Vote newlabour for free cash with no strings!cassandrahttps://www.blogger.com/profile/06088596240127998878noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-73316561983549753632009-03-06T09:21:00.000+00:002009-03-06T09:21:00.000+00:00I wonder if they've decided how many noughts to ap...I wonder if they've decided how many noughts to append to our bank notes. Conservatives take note, sitting on the fence only results in spelks up the arse.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6214838.post-15715845506916676332009-03-06T09:15:00.000+00:002009-03-06T09:15:00.000+00:00"In Zimbabwe and elsewhere, "printing money" (as y..."In Zimbabwe and elsewhere, "printing money" (as you characterize QE) causes hyperinflation because the government uses the new money to pay for government commitments - e.g. to pay the salaries of government workers."<BR/><BR/>Surely this is a very good description of what Brown is up to.Oscar Millerhttps://www.blogger.com/profile/09423019456579337438noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-87409625070750883212009-03-06T09:10:00.000+00:002009-03-06T09:10:00.000+00:00Quantitive easing improving liquidity? Sounds like...Quantitive easing improving liquidity? Sounds like a particularly nasty kind of laxative.Oscar Millerhttps://www.blogger.com/profile/09423019456579337438noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-12488913164985354752009-03-06T08:47:00.000+00:002009-03-06T08:47:00.000+00:00The Libertarian Party came out strongly against as...The Libertarian Party came out strongly against as you would expect, but the 'impartial' BBC which is supposed to give both sides of the argument was uniformly uncritical in this move. Parliament was bypassed, and the Tories as ever silent.<BR/><BR/>It is now begging the question do the Tories have any fresh ideas and dynamic economic Leadership, or is it a case of Buggins turn ?Guthrumhttps://www.blogger.com/profile/17499979740864497256noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-87540210069929485722009-03-06T08:22:00.000+00:002009-03-06T08:22:00.000+00:00IainYou are not economically illiterate. The sheep...Iain<BR/>You are not economically illiterate. The sheeple who have read the wrong ladybird books on economics will find out the hard way.<BR/>I'd like to think there was a good reason why John Redwood's approach is not tory policy, but I can't find one, which is immensely sad.BrianSJhttps://www.blogger.com/profile/03613916574661223679noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-7582358597464279142009-03-06T08:08:00.000+00:002009-03-06T08:08:00.000+00:00Iain - you're economically illiterate.In Zimbabwe ...Iain - you're economically illiterate.<BR/><BR/>In Zimbabwe and elsewhere, "printing money" (as you characterize QE) causes hyperinflation because the government uses the new money to pay for government commitments - e.g. to pay the salaries of government workers. However, with no new goods and services being in circulation, prices soar.<BR/><BR/>In QE, the new money is used by the Central Bank to purchase government and private bonds, thus having a real-terms influence on the rest of the Macroeconomy.<BR/><BR/>By and large, though, I think we all need to move to a place where we can assess QE for what it is - a neutral economic tool, to be assessed simply on the basis of whether it will achieve its stated aim - rather than being reduced to partisan screeching.<BR/><BR/>BTW - as for evidence, there is some evidence to suggest that the Japanese economic trough over the past decade would have been helped had the Japanese Central Bank used QE.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6214838.post-77060699679956374742009-03-06T07:42:00.000+00:002009-03-06T07:42:00.000+00:00Lenders, borrowers and rate setters are all respon...Lenders, borrowers and rate setters are all responsible for this crisis. To only blame the lenders is like blaming celebrity chiefs like Jamie Oliver for the obesity crisis - on the basis that he shouldn't have made the food so deliciousjavelinhttps://www.blogger.com/profile/04685858339910528013noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-16969013289709426262009-03-06T02:02:00.000+00:002009-03-06T02:02:00.000+00:00Someone says the govnt is spending this new money ...Someone says the govnt is spending this new money on itself. Well the Bank will be buying back gilts amongst other bonds. But the real purpose is to influence long-term interest rates - which gilt prices usually determine. When gilt prices rise (market shortage), yield rates fall, i.e. lower interest rates. 'Sell' more gilts and the reverse happens.<BR/>Personally, I'm not confident the plan will work. Just because the banks will have more cash won't make the public borrow it and spend. Business needs big spenders not scared, asset stripped taxpayers waiting for next year's massive tax bills.<BR/> http://pol-e-tics.blogspot.comJeremyhttps://www.blogger.com/profile/16971178866146219045noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-69471589619926674202009-03-06T01:34:00.000+00:002009-03-06T01:34:00.000+00:00I am deeply uneasyhttp://vickyford.blogspot.com/20...I am deeply uneasy<BR/><BR/><A HREF="http://vickyford.blogspot.com/2009/03/large-quantity-of-unease.html" REL="nofollow">http://vickyford.blogspot.com/2009/03/large-quantity-of-unease.html</A>Vicky Fordhttps://www.blogger.com/profile/16736235110962762699noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-50103650970028970352009-03-06T01:05:00.000+00:002009-03-06T01:05:00.000+00:00I love it the way people on this thread think they...I love it the way people on this thread think they know better.<BR/><BR/>Like f**k they do.<BR/><BR/>If any of you knew better you would not be living here or be so terribly poor. All the clever money is long gone, along with a few nice pension schemes.<BR/><BR/>Printing money is just one bit of anti-matter in a whole galaxy of desperation, engineered by people who are pissing us out of the window.<BR/><BR/>The next layer of despair will be to watch as the Government fixes the price of basic foodstuffs, making the food industry collapse because they are forced to make bread for 75p and sell it for 50p.Wrinkled Weaselhttps://www.blogger.com/profile/05291551539649118631noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-79567526041548390392009-03-06T01:04:00.000+00:002009-03-06T01:04:00.000+00:00"It's an entirely different situation. More money ..."It's an entirely different situation. More money in the system makes sense"<BR/><BR/>No no no!<BR/><BR/>We NEED delation to help wipe out all the malinvestments made in the boom. Yes it will be painful but the quicker we get it over and done with the better. Blasting more money into the system will simply delay the inevitable correction and make it more painful.<BR/><BR/>It is interesting to note everyone forgets the American recession of 1920-21 where the Fed reacted by increasing interest rates. The recession was sharp but short.no longer anonymoushttps://www.blogger.com/profile/17832752807489967541noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-25475924102152819232009-03-06T01:02:00.000+00:002009-03-06T01:02:00.000+00:00Iain, there is a good example of effective use of ...Iain, there is a good example of effective use of quantitative easing, it's called Japan. They used the policy from 2001-2004. It had very little inflationary effect and could be considered to have assisted in Japan's recovery.<BR/><BR/>More over here:<BR/><A HREF="http://citizenandreas.blogspot.com/2009/03/torynomics-fail.html" REL="nofollow">http://citizenandreas.blogspot.com/2009/03/torynomics-fail.html</A>Andreas Patersonhttps://www.blogger.com/profile/06431120459465519240noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-32902480928614173772009-03-06T00:02:00.000+00:002009-03-06T00:02:00.000+00:00Dungeekin - J Redwood says "it could be part of th...Dungeekin - J Redwood says "it could be part of the answer if ..."Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6214838.post-35841626334878265072009-03-05T23:56:00.000+00:002009-03-05T23:56:00.000+00:00"Your Mugabe reference here is truly ridiculous."A..."Your Mugabe reference here is truly ridiculous."<BR/><BR/>Apparently Zimbabwe's main problem is lax money supply.Jimmyhttps://www.blogger.com/profile/01542633492362670045noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-81072820977718514432009-03-05T23:55:00.000+00:002009-03-05T23:55:00.000+00:00"I heard George Osborne on WATO saying this was a ..."I heard George Osborne on WATO saying this was a very risky strategy -or words to that effect."<BR/><BR/>Must be on the right track then.Jimmyhttps://www.blogger.com/profile/01542633492362670045noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-71555633199254389992009-03-05T23:54:00.000+00:002009-03-05T23:54:00.000+00:00I've heard arguments that quantitive easing during...I've heard arguments that quantitive easing during a downturn is reasonable, as long as it has been paired with quantitive tightening in the previous upturn. A bit like shock absorbers on a car.<BR/><BR/>Of course you can argue that quantitive easing after a long period of 'virtual' quantitive easing (the credit bubble) is the recipe for a very bumpy ride...<BR/><BR/>John Redwood has blogged about 'sound money', often.DiscoveredJoyshttps://www.blogger.com/profile/05300239909689336895noreply@blogger.comtag:blogger.com,1999:blog-6214838.post-76072696453532660642009-03-05T23:52:00.000+00:002009-03-05T23:52:00.000+00:00Looks like a good idea to me. If you have had a ba...Looks like a good idea to me. If you have had a bad run of betting why not sign some more IOU's and have one great splurge - all or nothing. The worst that can happen is that you end up sleeping rough and with global warming that may not be so much of a hardship.<BR/><BR/>Another bonus is that if hyper-inflation comes along Fred Goodwin's pension will be worthless.<BR/><BR/>WV= Obelition [too good to miss]Victor, NW Kenthttps://www.blogger.com/profile/14778890471547456396noreply@blogger.com