Ritchie still doesn’t understand QE, does he?

In the meantime a wise Chancellir woukd anticipate that by getting an on the ground investment programme rolling. Billions of existing QE funding will require to be rolled over this year. Rather than simply put these sums back into the financial markets I would be putting them into being the pump priming capital of a new National Investment Bank.

So, at a time when Ritchie thinks we might want to lower interest rates (ie, he next crisis) he’s going to raise them by reversing the amount of QE we already have.

That reversal being what Ritchie said we would never have because QE will be permanent of course.

He just doesn’t get this, does he?

21 thoughts on “Ritchie still doesn’t understand QE, does he?”

  1. He doesn’t need to. In fact he actively needs not.

    By keeping the thing nebulous he can bend it to what ever purpose suits him as the case dictates. And his coterie of acolytes aren’t going to look for inconsistencies, now are they?

    Soup of the day.

  2. I’m guessing here that the National Investment Bank (perhaps managed by Lord Murphy of Much Wittering) will have very low interest rates so you don’t need low interest rates from the private sector banking, which is only funding fripperies rather than enterprises which build social capital anyway.

    Or something.

  3. Tim,

    by “reversing” the amount of QE we already have.

    In fairness, he doesn’t intend to reverse it (as in BoE crediting cash, debiting “MMT” reserve), he intends spending the rolled over cash on Ritchie’s QE rather than reinvesting it back into previous QE (bonds).

    That reversal being what Ritchie said we would never have because QE will be permanent of course.

    Yep, he’s finally admitting that the rollover process / re-investment (rather than cancellation) is real. And with that, he wants those billions all for himself…

  4. OT – but looking at his replies on the ‘devolved taxation’ thread shows how worried he is about the chances of a job heading up some Quango Tax Office disappearing.

  5. Given he’s repeatedly argued that (a) QE hasn’t done anything and (b) govt can print all the money it likes, I don’t see what opportunity he thinks is being missed. Just print more!

  6. I seem to recall that QE didn’t actually do anything much at the sharp end. It recapitalised the banks, but not much actually got loaned out (and if it had, inflation would have gone crazy). So His Richness has a point there, if that’s what he’s argued.

    So far as I can tell therefore he’s hoping to make inflation go crazy by handing out money at very low interest (perhaps zero) willy nilly, thus kind of achieving Keynes’s euthanasia of the rentier.

    Or something. Like Dennis said, his wife probably handles the real money. He just gets to play in his imagination with other peoples’.

  7. Ian B/Dennis

    I think his wife has been on sick leave for a little while which means he is in charge of the books – why do you think he is looking for a job from any body that might care to offer it?

  8. On the way down, ZIRP comes before QE.

    On the way back up, should not selling the bonds come before rate hikes?

    Or is there no “exit strategy”?

  9. “Or something. Like Dennis said, his wife probably handles the real money. He just gets to play in his imagination with other peoples’”

    The cunt was still talking shite on Wednesday’s ITV Ten O’clock News. The item was about that John Lewis moron peddling the no-fair Corp tax line on Amazon.

    The news was nothing but propaganda. I rarely watch news shows cos I can’t afford to replace kicked-in TV sets. The level of socialist shite on all channels and all shows is mind-boggling. As the Bard said “Now all occasions do inform against me”.

    The very next item was how wicked Asad is for starving Syrian civilians to death. It was in a besieged city. In what siege in the history of the world have besiegers sent food in to the besieged? Yet this was evidence of the super-evil of Asad. Sure he is no good guy but not feeding the besieged FFS?

    Lunacy.

  10. Maybe he could make a few quid doing a reality TV show. “The Murphys”, the story of a family coping with their brain damaged paterfamilias. Or, “I’m Richard Murphy, Get Me Out Of Here!” in which he is taken to a jungle. And left there. Permanently.

  11. I think his wife has been on sick leave for a little while which means he is in charge of the books – why do you think he is looking for a job from any body that might care to offer it?

    Maybe The Murph and Arnald should form a band. Something like “Screamin’ Lord Murphaloon and the Informers”. Maybe they could get Ritchie Blackmore to join ’em… I hear he’s playing renaissance festivals these days.

  12. Potential Richard Murphy themed reality shows:

    Guernsey Shore
    Keeping Up With The Murphys
    Bad Economists Club
    My 60 IQ Life
    57 And Stupid
    Who Wants To Marry A Murphaloon
    The Real Housewife of Downham Market
    Here Comes Ritchie Boo Boo
    Growing Up Murphy
    My Big Fat Ritchie
    The World According To Ritchie

  13. It’s funny how when something is your job you don’t want to deal with at at home/personal, wouldn’t be surprised if for a lot of accountants their wives/partners handle the finances. Something along the lines of the house with the worst wiring in town belongs to the electrician as hes too busy charging people to work at home for free.

  14. Bloke in Costa Rica

    Dennis, I was just asked what was making me cackle out loud. It would take about 3 weeks of seminars, with flip charts, to explain to a Tica who doesn’t know who Murphy is exactly what was so funny about that list so I just said, “nada”. But bravo.

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