The government has learned to use QE to fund the coronavirus crisis, which is all well and good except for the fact that there are significant wealth inequalities arising as a result as some in the population save substantial amounts. If we are to prevent runaway asset inflation arising a way to use those savings has to be found and they have to be used to fund constructive activity. I outline some new thinking on this issue in this video. There is much more thinking to do in this area if social justice is to exist after coronavirus.

The aim of QE – rather than the monetisation of fiscal policy – is to raise asset prices, to reduce yields, so that people go out further along the risk curve in their investments in search of income.

Commissar Kartoshke is thus trying to come up with a solution to the point of he exercise.

3 thoughts on “Facepalm”

  1. If we are to prevent runaway asset inflation

    You what, now? From here:

    First of all, there is a 0.98 correlation between people who use the phrase “asset price inflation” and someone who is wrong about the markets or monetary policy.

    Asset price inflation is not a thing. Risk[sic] assets generally go up over the long-term.

    But then again, this seems to be a rephrasing of what Timmy’s saying anyway.

  2. a way to use those savings has to be found and they have to be used to fund constructive activity.

    I KNEW he would see ordinary people saving money by not having to commute, or pay for nursery care, and think “I’ll have me some of that”.

    All your money belongs to the State.

Leave a Reply

Your email address will not be published. Required fields are marked *