And that’s all because they pretend that the debt subject to QE will sold back into markets one day, which would literally not now be possible: there’s just too much of it.
So, OK, we print money so that government can spend it. Shrug. At some point the economy returns to normal. That increase in the money supply is going to boost the inflation rate. Substantially. To which there are two responses. We can sell those bonds back to the market, collect the cash and cancel it. Or, we can do as MMT says, and raise tax rates to collect the money and cancel it. And if there’s too much QE to be able to sell the bonds then what will the tax rate have to be?
We sell a few bonds every year for several years. Some banks are lending house-buyers money for more than 30 years, so if the individual is offered 30+ years to repay the debt, why not HMT?
The age profile of gilts is favourable to the UK. A private bond issuer would be wise to fill his boots at current rates. Whether this applies to the DMO requires an understanding of macro economics I don’t have.
Who cares if the bonds dive deep below par? Club Med and LDCs who have to reissue short dated bonds. They are f%%d.
A 100% tax rate of course. With the State doling out some gruel for the peasants to to subsist on. Thats the aim – a nation of slaves, everyone reliant on the all knowing all powerful State.
You have a rather blasé who-gives-a shite attitude to something that has and will hurt a lot of people time.
And hurt people do very stupid stuff–as history proves.
Time? Tim. You need a Samiz like amendment facility Tim.
Should the UK think about issuing 100 year bonds? Serious question.
If there’s too much QE to be able to sell the bonds then the tax rate will have to be over 100%, surely?