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No, he’s still missing it, isn’t he?

As is the denial to be perpetuated that what has happened gives control to the government of interest rates – precisely because of the power of QE and the existence of central bank reserve account balances of about £800 billion.

In order to control interest rates – as with being able to control inflation – you’ve got to vary the money supply.


But that means that sometimes you’ve got to reduce the money supply as well a at times increase it. That is, at times you want to be able to sell those QE bonds back to the market…..

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