Thursday, 12 April 2012

What would HMG have down without the BoE?


The UK government has issued over a trillion quids worth of debt. That is about £17,000 for every man, woman and child in Britain.

Would the government managed to issue that extraordinary figure without the Bank of England (the green component in the chart above)? I don't think so.

6 comments:

Anonymous said...

Alice stop bitching ,we get value from our investment !

Anonymous said...

Not

Ralph Musgrave said...

A government borrowing from its own central bank is a meaningless paper shuffling exercise, as Mark Wadswoth explains. See:

http://markwadsworth.blogspot.co.uk/2012/04/half-right-is-still-completely-wrong.html

Electro-Kevin said...

It's worse than that, Ralph. To me it seems like deception.

(Enjoy your comments btw)

Ted said...

Its continuity Brown, he may be out of office but he's still in power and the Coalition are following his doctrine.

The Government prints the money, gives it to the BOE who use it to buy the Government debt. Absolutely bloody brilliant the Government under Mr Brown's guidance has discovered a means of perpetual self funding with a rich seam of unlimited borrowing. No more boom and bust for Britain we can just crack on with the printing.
What can possibly go wrong?

Patrick Crozier said...

The light blue bits are also pretty alarming. The nationalised banks?