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Of course QE will never be reversed

Policymakers will also announce plans to start selling the £850bn mountain of government debt amassed through a bond-buying programme during the pandemic and financial crisis.

Mr Bailey has suggested the Bank will try to sell between £50bn and £100bn of bonds in the first year, starting this Autumn.

Because QE will never be reversed therefore the national debt isn’t very high and we can carry on printing money to solve all societal problems and Spudnomics now wholly and completely works.

Hmm? What’s that? QE will be reversed?

6 thoughts on “Of course QE will never be reversed”

  1. I wouldn’t worry Tim – according to Spud Banks don’t act as intermediaries so their Treasury and Finance teams don’t actually need to worry about things like Balance Sheets and Liquidity. It’s all covered in the ‘Money creation in the modern economy’ and if anyone has the temerity to question him then they need to provide a CV pointing out how they know more than he , and the bank of England do…

    First poster on this thread – is that you ‘Rsm’?

  2. A decade or two to reverse QE. Are they sure there won’t be some financial crisis in that time that requires, ahem, QE?

  3. A plan to do something is not the same thing as doing it. By early next year it will be very apparent we are entering a severe recession, and the BoE will be being told by the people who control it (ie the politicians) to stop QT pronto, and crank up the printing presses again. And the BoE will say ‘Yes Massa!’ and do as its told, despite inflation still being in double digits. I doubt if the BoE will get in more than a month or two of QT before having to reverse policy at high speed.

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