Well, there’s a lie, isn’t there?

Jeez! Another one. Private school & Oxford. Childless. So HTF is she living in council housing in Islington?

My guess is that it’s a former council flat, sold under right-to-buy, then later re-sold to Penny. The council still own the building leasehold and collect ground rent, and are responsible for repairs of this nature (a leak to the floor below).

“So HTF is she living in council housing in Islington?”

The traditional method was to go to bed with Councillor Murphy.

“What, for example, makes the £50b different from the other £850b? Not that I’d advise waiting for Spud to provide such an answer, Godot will be here first.”

Perhaps our host could tell us a bit quicker then what was different between the first round of QE (which ‘didn’t get into the real economy’ according to him) and the subsequent ones that obviously did……despite the BoE operating procedure being identical in each?

@Jim

The intent of QE was to increase M while V was suppressed in order to maintain some stability in the left half of MV = PQ. It worked. While the product of M and V remained at or below historic levels, QE did not lead to inflation in the “real” economy — although there were some asset bubbles, but they could equally be laid at the door of near-zero interest rates.

The problem is that when V started returning to normal they didn’t immediately start unwinding QE (i.e. reducing M) to compensate, instead they committed the cardinal sin of even more M. At this point things really started taking off, but because there is typically an 18-month lag between policy changes and noticeable effect out in the real world nobody noticed immediately.

Of course, while doing this was cretinous on its own, TPTB worldwide also decided to shove a spanner in the productive economy because of the Wuflu, thus dealing a hammer blow to Q (quantities of goods/services available). Thus M and V both start increasing and Q falls off a cliff, which means that P can only do one thing, and do it incredibly hard. This feeds off itself because as P rises, so does V as people offload their money before it loses even more of its value.

“The intent of QE was to increase M while V was suppressed in order to maintain some stability in the left half of MV = PQ. It worked. While the product of M and V remained at or below historic levels, QE did not lead to inflation in the “real” economy — although there were some asset bubbles, but they could equally be laid at the door of near-zero interest rates.”

We know all of that, but our host maintains that QE1 ‘did not enter the real economy at all’. I maintain thats bollocks because the State spent all the money it received via the BoE buying gilts into the real economy, paying for benefits, the NHS, pensions etc. The reason it didn’t result in inflation then was that the money supply was dropping at the time, due to credit money being destroyed by the GFC. So sticking in some printed money didn’t really affect the supply/demand equation in the economy. But the printed money DID enter the real economy and QE WAS monetisation of government deficit spending. But our host wants to pretend otherwise for some reason…….

And anyway QE1 probably did create inflation, only it was just lifting it from negative territory into positive. We’d have had deflation absent QE1, for sure. Money printing creates inflation, who knew????

“Penny came out as genderqueer, pansexual and polyamorous.” So she takes all-comers?

With her looks it’s more like all goers.

What is it with plain wimmen these days? Amanduh Marcotte, Jessica Valenti, Laurie Penny. All solid 5/10. They won’t stop fucking anything that moves and they can’t shut up about themselves. Back in the day they’d be a one night stand if you’d had too much to drink and someone to avoid if you hadn’t.

I thought she was still in the US. I must have missed a memo. David Thompson normally keeps us advised of her movements.