Skip to content

Huzzah, we are saved

Replace central bank reserves with £billion coins.


It’s just nicking the money off the banks again:

But the point is, the Bank of England could insist that the commercial banks enter into an exchange of their central bank reserve accounts for coins to the extent that the Bank of England desired, and those coins would then be an asset on the commercial bank balance sheets guaranteeing their solvency, and permitting inter-bank settlement as well by registering charges on them, but at the same time no interest need be paid on them by the Bank of England.


9 thoughts on “Huzzah, we are saved”

  1. Oh.

    I’m afraid I don’t understand either position….

    (Though I know which I would expect to be right!)

  2. Martin near the M25

    I wouldn’t want to lose one of those down the back of the sofa. And I assume Spud would be on one face of the coin? Though it might be more appropriate for him to be on both faces.

  3. We might want to check why we pay interest on bank reserves before we stop doing so. There are a bunch of things we can do to reduce reserve requirements, and most of them have negative outcomes for everyone involved compared to the current set-up.

  4. Tim

    You have crystallised it – as with the raids on ISAs and Pensions, as well as ‘Wealth taxes’ and clampdowns on Cryptocurrencies (touted long ago), the man is little more than a brigand masquerading as an ‘academic’

    No humility, no sense of shame or embarrassment at
    Almost certainly being (at least ideologically) directly responsible for the greatest number of deaths attributable to man made causes in human history. Simply a scheme to cover his own ass and at least try and get some Money to compensate for facing a retirement largely reliant on the state pension. Hopefully he starves to death alongside his victims.

  5. @Van Patten

    Justice would be his starving victims finding the fat fucker hiding in his well stocked pantry while they still have the required strength.

  6. Replace central bank reserves with £billion coins.

    Great. So these coins are they the size of a car and made of pure gold then? Nope. Bit of plastic with £1 billion written on the front.

    Then they might have a fiat value of £1 billion, but their intrinsic value is close to £0. Not exactly the sort of thing we want propping up the reserves then, is it?

Leave a Reply

Your email address will not be published.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