Isn’t this interesting?

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?

43 thoughts on “Isn’t this interesting?”

  1. > the next downgrade from Ely

    That would be out in the Lincolnshire Fens. Alas, they already have internet even there.

  2. o 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.

    Absolutely fucking barking.

  3. As a result the Bank of England is lying.

    Can a public institution sue? Has Murphy been clever here and finally chosen a target who won’t cost him five figures?

  4. There is a Magic Money Tree, that much is trivially obvious, as other countries have over time used it, its just that the consequences of using it are universally catastrophic. Of course States can print money, either physically or electronically, there’s nothing to stop it, it has the guns. But it can’t create wealth out of nothing, and thats the important part, not the means of exchange.

  5. What’s the next downgrade from Ely in the housing affordability stakes?

    Cardboard box underneath a motorway bridge?

  6. I shouldn’t think the Bank would consider it worthwhile to sue him. I would be beneath their dignity and not cost-effective. So he will continue to spout crap, and will say that he must be right because they haven’t sued him.

  7. Richard, maybe or maybe not. Wouldn’t it be delicious if the BoE had a word with his current employers and he lost his job? A taste of his own medicine.

  8. I imagine him coming up to innocent commuters at bleak East Anglian railway stations, holding out a paper cup and muttering “I used to be a Professor”…

  9. “But it can’t create wealth out of nothing”.

    Nobody says there isn’t a money tree (unearned cash in euroland is close to a trillion I’ve read somewhere).

    Its the magic bit that is wrong.

  10. ‘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.’

    I’d echo Flatcap Army – this is zerohedge – like stuff. he should see if Putin would use him to spread around some fake news into Social media…..

  11. To summarise:

    As a result the Bank of England is lying…

    …its denial is a lie.

    …The suggestion that it might is another lie…

    …To be blunt, the Bank is lying…

    …Their lawyers are welcome to contact me if they wish…

  12. He is churning out barking woof woof mad posts faster than ever these days. Did you see the one where he accuses Scotland of being a tax haven? He should be sedated and soon

  13. Richard, maybe or maybe not. Wouldn’t it be delicious if the BoE had a word with his current employers and he lost his job? A taste of his own medicine.

    As he works for Trot Poly I can’t see that happening, alas. In fact they’d probably promote him.

    I imagine him coming up to innocent commuters at bleak East Anglian railway stations, holding out a paper cup and muttering “I used to be a Professor”…

    And the commuters mutter “…of Practice” as they walk by.

  14. ‘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.’

    That would be a conspiracy so huge and widespread it would make the alleged 9/11 conspiracy look like two blokes talking quietly in a pub corner.

    I wonder if Truthers read his stuff and mutter “Jesus…”

  15. is this another potential route to Vermine for the Murphmonster – become Governor of the BoE appointed by some fvcking leftwing halfwit and get Vermine on retirement (if the UK has not been bankrupted during his tenure)?

  16. If enough crazies like poor old DNR Reed openly agree with Spud, the BoE might just find itself needing to react to the calumny.

  17. DBC Reed:

    Epic trolling over a period of years. What evidence have you to prove this surreal state of affairs. Are you saying the paragraph that Rob and I have quoted is correct? That a global conspiracy has been undertaken as Murphy suggests?

    If you could confirm that would be great. A picture of you with the tin foil hat – to prove you are a real person and not some demented ‘bot’ would be nice if you can stretch to it.

  18. It’s obvious he’s forgotten to take his medication today. The next post will presumably cover the role of Bilderberg, Illuminati, and da Joooooos in all this.

    If you were running the BoE, why would you grant him the credibility of a suit?

  19. 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.

    Dear Richard –

    You don’t kill a gnat with a machine gun.

    Yours,

    B of E

  20. DtP, Work? I don’t think Violet Elizabeth Reed has worked a day in his life. It certainly explains his wibble while he sits in his Northampton bedsit next to his meagre possession.

    Nothing more than envy that everyone else who has worked for what they have earned has some wealth while he has got nowt, or he is a Socialist Worker activist (I appreciate that these two things are not necessarily mutually exclusive).

  21. DtP, Work? I don’t think Violet Elizabeth Reed has worked a day in his life.

    I’d guess you are right. After all, isn’t “from each according to his abilities, to each according to his needs” the battle-cry of every mooch alive?

  22. As Reed keeps on telling us, banks create money out of thin air.

    I guess that’s why he chose this thread rather than the one on Northern Rock.

  23. Public bodies rarely if ever bring action if you slag off the organisation as a whole.

    But Ritchie has published on his blog the name of an individual BoE officer, and effectively called him a liar.

    He’s gone beyond saying he thinks this fellow has made a genuine mistake. He’s imputing that this guy has told a falsehood knowing it to be false.

    Pretty big slur on a guy whose profession depends on having the trust of the public.

    I’d regard that as a line that has been crossed.

    I’d hope BoE would support the professional reputation of this employee.

  24. @marc “Create full employment”doing what exactly?
    well for a start theres all those bank accounts that need to be monitored for excessive consumption. Secondly all those emails that need to be read which considering the volume of both should employ 33% of the workforce. Of the remainder 50% will be working for hmrc and the other 50% installing solar panels and windmills.

  25. Has the Murph meister hit a new low in terms of intellectual honesty, consistency and value today? It certainly feels like it

  26. Diogenes

    Just when you think he has hit a new low he seems to enjoy aiming for the floor. In fairness the disgraceful expose of the much lamented FCA blog, a truthsayer of real integrity by this dilettante was my personal nadir but I am sure all will have their personal favourites…

  27. “@John square WTF you going on about. And whats inumberate
    when it’s at home?”

    Some sort of animal which cannot count?

  28. @Jack C
    Another problem is that Tim W also believes banks create money out of thin air.See this blog 19.iii.14 “The short explanation is that banks do indeed just create money out of thin air”: something of a climb down from his previous position “No banks don’t create money” 14.vii.12.
    There are sometimes pretentious wibbles on here about the difference between “central bank money” and commercial bank money .The BoE is clear:”This article explains how the majority of money in the modern economy is created by commercial banks.”
    Carry on wibbling .It is the only freedom !

  29. DBC Reed,

    Wierd dating formating there – took me a minute to realise you weren’t citing the bible.

    I don’t think Tim denies (central) banks can create money out of thin air. He presumably is aware that without creating additional value as well, all they are doing is making stuff more expensive by increasing the amount of money required to buy anything (because the amount of money in the economy has increased, but the amount of stuff you can buy hasn’t – therefore a higher price is offered and demanded for the same stuff), and as such it is a bloody stupid idea. That has been his (vastly simplified) position as long as I’ve read him anyway. It should also be the position of anyone who has figured out the basics of economics…

    Considering that inflation through printing money hits the poor hardest (because being poor means you have less capacity to absorb increased costs), you’d have thought socialists might oppose it. But somehow the option of producing money to spend seems to override the first-order effects of doing so.

  30. @W
    The BoE says the majority of money is created by the commercial banks. But carry on wibbling its your only freedom in our system that Mark Wadsworth , the properly qualified tax expert, calls slavery in a letter to the Evening Standard recently.
    (MW is a laissez- faire , Brexiteer supporter of LVT who has become, increasingly ,a critic of the banks.He is also the treasurer of the very Left, Labour Land Campaign.In fact, Left and Right work together quite happily on the subjects of Land Value Tax and monetary reform, so basic they undercut the simple political divides erected to keep the wibblers occupied).

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