And that’s obvious by the fact that the Bank ends up owning large parts (about 25%) of the government’s total debt which it has quite explicitly funded through the creation of new money as a result. This cannot be denied. As a result the Bank of England is lying.
And yes, it probably is breaking the law as well, but since it’s happening all across Europe and it has been universally decided (one ongoing court action in Germany apart) to ignore this fact because it is clearly in the public interest to ignore such a badly conceived piece of law, no one cares.
What i more it has printed money: it says so on its own website. Again, its denial is a lie.
And that has not created inflation. The suggestion that it might is another lie.
So why is it doing this? Three reasons. One because it is pretending it is not breaking the law.
Second, because it remains committed to a version of economic theory on money, money creation and inflation that died ten years ago, but which the Bank of England has refused to bury (there’s another post on this coming next on this site).
Third, because I strongly suspect that the Bank is part of a conspiracy that spreads beyond the City that does not want to know that money can be printed for use for social purposes like creating full employment, funding the green economy, delivering the NHS we need and providing the social security safety net that most have to rely on. They want it to be thought that money is in short supply when the evidence is that the Bank can create it as it wishes.
To be blunt, the Bank is lying because it knows there is a Magic Money Tree but that it does not want to use it for the benefit of the people of this country, which shows that it is neither apolitical or independent of the government in its actions.
That’s my explanation for the Bank of England’s reply. Their lawyers are welcome to contact me if they wish. I’d win in court.
What’s the next downgrade from Ely in the housing affordability stakes?