How to waste £445 billion : The Failure of Quantitative Easing

The creation of new money (”Quantitive Easing”) by the Bank of England following the 2008 financial crisis has had the effect of massively redistributing Britain’s wealth into the hands of the already rich. The UK’s richest 10% have increased their wealth by 46% since the crisis.

For every £1 of the £445 billion created –  (the equivalent of more than £6000 for every man, woman and child in the UK)  –   just 8p has ”trickled down” to the real economy. The rest has been gobbled up by inflated financial asset markets and the (London-centric) house-price bubble.

(video by Positive Money)

Privately owned Banks create money as debt out of nothing and then charge interest on it. The job of their place-men and accomplices in government, mainstream political parties, and crucially the media they control, is to ensure that this fraud goes unnoticed or is misunderstood by a distracted and ill-informed population, who will then acquiesce to being enslaved in debt and ‘austerity’…
But there is nothing to prevent any sovereign nation from issuing its own debt-free, interest-free money through its Treasury, based on the wealth, integrity and potential of that nation (in other words its credit) in order to meet the needs and guarantee the security of its people.



The rich have made a killing from Q.E.

Next time it should be injected directly into the real economy instead of the banks.

trickledown explained in detail

‘Trickle Down’ economics, explained in detail.

Quantitive Easing has been a total failure. The new money created by QE and ‘injected’ into financial institutions – such as pension funds and insurance companies – was not invested into productive industry, but rather went into stock markets and real estate, driving up prices of shares and houses, but generating nothing in terms of real wealth or employment.

Holders of assets such as stocks and houses, therefore, have done very well out of QE, which has increased the wealth of the richest 5 percent of the UK population by an average of £128,000 per head.

How can this be ? Where does this additional wealth come from ? After all, while money – contrary to Tory sloganeering – can indeed be created ‘out of thin air’, which is precisely what QE has done, real wealth cannot. And QE has not produced any real wealth. Yet the richest 5 percent now have an extra £128,000 to spend on yachts, mansions, diamonds, cocaine and so on. So where has it come from ?

The answer is simple. The wealth which QE has passed to asset-holders has come, first of all, directly out of workers’ wages.

QE, by effectively devaluing the currency, has reduced the buying power of money, leading to an effective decrease in real wages, which, in the UK, still remain 6 percent below their pre-QE levels. The money taken out of workers’ wages therefore forms part of that £128,000 dividend.

In truth, the story that QE was about encouraging investment and boosting employment and growth was always a fantastical yarn designed to disguise what was really going on – a massive transfer of wealth to the rich.

(extract from article by Dan Glazebrook ~ 23 July 2017) : Full article :

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