But, since the Treasury remains committed to quantitative easing the Bank of England has no choice but go back and buy new bonds to replace those that are being replaced. And that is precisely what it will do – to the tune of more than £15 billion.
Now, let’s first of all think what this means. First, it means that the government still has an active quantitative easing programme. That needs to be said because no one else is doing it.
Nobody else is saying what I and everyone else has been saying all along? That the BoE is topping up the stock of QE bonds as some of them mature?
Or is this no one as in no one I know voted for Nixon? That is, no one in Ritchie’s bubble?
Second, what it means is that in effect the £375 billion is not being repaid: it is instead being rolled over. The paranoia about QE that it must be repaid is not happening in practice. When debt comes up for repayment it is simply being replaced. In other words, a lot of nonsense about the need to replace QE in times of growth (which it is claimed we are enjoying) is not being evidenced in practice. In practice we are still going ahead with QE in a supposed time of growth. Some honesty on this point would be very useful.
Yes, everyone agrees that the BoE is topping up the stock of QE bonds as they mature. QE is not being repaid yet. As everyone knows and agrees.
Third, given that People’s Quantitative Easing and quantitative easing are the same in their financial functioning as both buy government issued bonds to be held for an indefinite period by the Bank of England there is no reason why the money to be reinvested next week could not be used for People’s Quantitative Easing.
Err, yes, there is. PQE injects base money into the real economy. QE does not. It’s a rather large difference there.
It really is time for those to object to come up with some real arguments as to why it should not be done.
Because it’s the monetisation of government spending. The same problem we all identified the day you first started talking about it as Green QE 5 years ago.
It’s almost amusing, the manner in which his own ignorance won’t let him understand the points being made. Almost.