[P2P-F] QE Pamphlet from the Bank of England....

[ideasinc at ee.net]

thanks for the provocation.

The whole strategy of QE is of the exact same cloth as Milton Friedman's  
monetarism as well as the rest of the whole neo-classical fiction. QE in  
Japan has produced about 20 years of recession. There the banking cartel  
and the oligarchs of industry have done well, while the population of  
Japan is dying for lack of a personal future.

Gresham's Dynamic describes a process where corrupted money tends to drive  
out honest economics. Part of this process is driven by false economies  
favoring the glorification of Greed and corporate patronage. In the US the  
Fed. Reserve has gone through QE 1 and 2, with the primary effect has been  
to inflate a commodity speculation bubble, and anywhere else double digit  
returns on investment can be gained.

Not a word about the suppression of demand because it is just not rational  
to re-inflate speculative bubbles when the whole economy as a commons is  
crashing. One of Greenspan's most memorable quotes is where he describes  
gains in benefits and wages by working people as inflationary. This is the  
bolder face of "positive" economics.

The other aspect to look at is that the privatized banking system really  
does sees itself as the definition of a sovereign economy. This is also  
how little deliberation is required to back the same level of public debt  
to feed the speculative ponzi schemes.

The economic model that QE is based upon assumes that "stability" is  
defined by constantly inflating commissions.   Another is that such almost  
unimaginable funds in the way of ultra, ultra low cost. Claiming that QE  
is any way appropriate way of addressing inflation, is dancing with a fig  
leaf's amount of caution. This is economics as theology. There is also no  
mention of the socialization by public debt for private gain, of course.  
The diagrams look impressive, the text seems soooo reassuring, and it is a  
collection of fictions. Go baaaccckkk to sleep, nothing is wrong, ignore  
the man behind the curtain.

Most of the QE funding will end up in the derivative markets seeking out  
fictional returns. Again these natterings about "controlling inflation go  
straight back to the Greenspan quote, ie to suppress wages by multiple  
means and to plunder various aspects of the commons.

Tadit




On Fri, 23 Sep 2011 06:56:51 -0400, robert searle <dharao4 at yahoo.co.uk>  
wrote:

> The following maybe of interest
>  1-10 of 116,000 results· Advanced
> 	* Quantitative Easing Explained
>
> The Bank of England aims to keep inflation at the 2% target set by the  
> Government. The Bank uses interest rates to control inflation. It sets  
> an interest rate at which it lends to ...
> www.bankofengland.co.uk/monetarypolicy/pdf/qe-pamphlet.pdf · PDF file