P³ is insisting that QE has created lots of idle cash sitting around. Therefore we’ve got to mobilise that cash to invest in lovely stuff:
My logical conclusion, based upon this analysis, is that there is a massive market for what look like cash based savings products but which are related to real economic activity, which is precisely what I am trying to promote for the combined reason of tackling the cash glut that exists, and to provide the capital that society needs for the economic and social transformation that it must undertake.
The problem with this being that as soon as that idle cash gets spent upon real investment then it’s necessary to reverse QE and suck the cash back into the BoE. Or, obviously, have significant inflation:
Such an account would lock money up for, for example, five years at maybe 1% at present, or 10 years at maybe 1.5%.
He just doesn’t get economics, does he?
It’s precisely because that £800 billion of new money isn’t being spent that we’ve not got massive inflation. As soon as it is, we do.