To reduce the Gollum-like nature of Bailey-speak to something approximating to plain English, what this means is that the Bank of England intends to reverse between £50 and £100 billion worth of quantitative easing in the next year, sucking this amount out of the economy as a result.
So, as we face a Bank of England-induced recession he wants to compound the suffering by sucking funding out of the financial markets that might have been available for productive investment to destroy it instead and put it beyond use, clearly with the intention of inducing recession which he thinks the condition for beating inflation.
According to Spud on Mondays, Thursdays and Saturdays the banks have that QE money sitting in their central bank reserves accounts and doing nothing.
I don’t understand, all QE did was inflate asset prices and make the neoliberal bankers richer, Spud told us. So how can it all suddenly become productive investment when you reverse it?
available for productive investment
I’ve seen his and Hines work. The idea that any aspect of it counts as what a conventional entrepeneur or economist would call ‘productive investment’ is risible….
Day 7
Posted on July 20 2022
The little red line on the Covid test has gone….
But for those who think that this Covid experience is one that should be created with indifference, I really do not agree. It is is a horrible illness, and the long-term effects are dire.
Some people are indeed hoping it is both long and dire
BF
How does he know ‘The long term effects are dire’?
The B$%^ard can’t wait for another lockdown I’d imagine….
Pure evil…..
Is he still an MMTer?
If so, shouldn’t he be demanding nurses get taxed more to remove some of that cash that’s sloshing around and causing inflation?
If not, colour me purple that he’s dropped a theory that allowed him so spend as much as he wanted as soon as the costs became clear. Just like those Keynesians who never get round to fixing the roof.