I stand corrected, duff chart I think.0
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Pound at all time low? Well that was a lot of fuss about nothing...
- Thread starter Mottie
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I stand corrected, duff chart I think.0
D
Deleted member 18243
Thank you, but you didn't answer my question, which was:
If your "money can be created from nothing" statement was true, why doesn't the government solve all our problems by printing us all a million pounds each?
UK govt instructs the BoE to create new £s every time govt spends. The BoE must comply. There's no debate.
There are a couple of assumptions in your question:
1. Govt wants to solve all your problems
2. Govt giving everyone a million quid would 'solve all our problems'
The only way govt could give us all a million pounds each would be to have parliament authorise that spending. Theoretically they could do that any year. They haven't done it yet and I wouldn't hold your breath.
So either 1 or 2 are incorrect assumptions or both 1 and 2 are incorrect. I'd go for both.
I assume you would simply want to inject the extra million each without considering any offsets, that right?
There are a couple of assumptions in your question:
1. Govt wants to solve all your problems
2. Govt giving everyone a million quid would 'solve all our problems'
The only way govt could give us all a million pounds each would be to have parliament authorise that spending. Theoretically they could do that any year. They haven't done it yet and I wouldn't hold your breath.
So either 1 or 2 are incorrect assumptions or both 1 and 2 are incorrect. I'd go for both.
I assume you would simply want to inject the extra million each without considering any offsets, that right?
D
Deleted member 18243
Most of that is beside the point. I am asking, if the govt can create money from nothing, why don't they, when the country's problems are all caused by a shortage of money?
They do appear to want to solve our money problems - shortly they will be giving everybody £400. Why could they not make it a million each, or £500 each, or even £401 each?
D
Deleted member 18243
No, just answer my question!
Calm down, no need to give yourself an aneurysm.
Your question is built on a false premise - the false premise that there is a actual shortage of £s available.
£s are not a scarce resource, they aren't dug out of the ground or hacked from a mountain or made in a big £s factory somewhere.
The reality is the UK govt is not fiscally constrained in any way; whatever spending parliament approves, regardless of size or purpose, cannot legally be stopped.
Therefore, any 'shortage' of £s is due to political choice.
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Its Utopia
More deflective waffle from the waffle champ.
Instead of waffling about waffle, here's my challenge to you:
. Point out what you think is incorrect about anything I've said
. Put forward your refutation and set out your understanding of how govt injects and drains
Here's what I predict you will do:
. Shout something irrelevant from the sidelines
. Run away when challenged
Here's your chance to prove me wrong.
The floor is yours. Go!
You’ve disappeared down a MMT rabbit hole.
MMT does not address the opportunity costs and distributional consequences of the monetisation of deficits by the central bank.
Same challenge (and same prediction) to you:
. Point out what you think is incorrect about anything I've said
. Put forward your refutation and set out your understanding of how govt injects and drains
Here's what I predict you will do:
. Shout something irrelevant from the sidelines
. Run away when challenged
Here's your chance to prove me wrong.
The floor is yours. Go!
I think it's a version of Utopia which can be called 'The Golgafrincham Paradigm'; where an unlimited supply of leaves can be used for currency - when fishy says "The reality is the UK govt. is not fiscally constrained in any way; whatever parliament approves, regardless of size or purpose, cannot legally be stopped."
It sounds like "if you print it, they will spend it."
Same challenge (and same prediction) to you:I think it's a version of Utopia which can be called 'The Golgafrincham Paradigm'; where an unlimited supply of leaves can be used for currency - when fishy says "The reality is the UK govt. is not fiscally constrained in any way; whatever parliament approves, regardless of size or purpose, cannot legally be stopped."
It sounds like "if you print it, they will spend it."
. Point out what you think is incorrect about anything I've said
. Put forward your refutation and set out your understanding of how govt injects and drains
Here's what I predict you will do:
. Shout something irrelevant from the sidelines
. Run away when challenged
Here's your chance to prove me wrong.
The floor is yours. Go!
Printing money causes inflation which gets worse when there aren't enough people and resources to meet demand. That creates more inflation as supply is further squeezed, ultimately leading to civil disorder or worse. Wellyfish, the ultimate test is how people respond in practice to economic theory not what the theory says will happen.
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