Saturday, January 17, 2009

Quantitative Easing and so on

Ok,

So, the Independent has this today:

Treasury officials said yesterday that Gordon Brown, Alistair Darling and Mervyn King are looking at options ranging from introducing "quantatitive easing" – printing money – through underwriting or insuring the toxic assets of the UK's banks, to full-scale nationalisation. Speculation that the Government is set to create a "toxic bank" to isolate all the sector's bad debts was, however, played down by the Treasury because of the complexities.

The government are on now talking about printing money. This is coming up a lot. I am sure that they have their reasons, a banking crisis and all that. But before we start debauching the currency couldn't we start prising some money out of the tight hands of our beloved large corporations and high net worth individuals - they have been skipping tax offshore for a generation now. This has recently stirred the indignation of the union Unite. According to the Guardian:

The union cites figures published by analysts Tax Research UK, which suggest that Britain's top companies avoid paying £25bn in tax a year through the use of tax havens. In addition, a conservative estimate suggests that wealthy individuals - those earning over £200,000 a year - avoid a further £8bn in tax.

OK, so £33 billion a year. Let's say that they have to pay back taxes of £330 billion plus £33 billion for 2008-2009. Now, I am not an expert, but wouldn't using that money to buy out the banks have a less inflationary effect than printing a stack of money? Wouldn't it have the added benefit of shifting the cost of saving the capitalist system onto those who have benefited in ways that others have been unable to profit from? Inflation hits anyone with savings. This only hits people who've been skipping taxes. If some sort of massive bailout is necessary to head off a disaster, then surely the burden should be borne by an opulent and devious minority, rather than by the rest of us, too slow-witted or scrupulous to get with the tax avoidance program?

10 Comments:

Blogger MC Shalom said...

Chairman Ben S. Bernanke, We Are Opting Out of Credit.

All of Our Economic Problems Find They Root in the Existence of Credit.

Out of the $5,000,000,000,000 given out to the banks, that is $1,000 for every inhabitant of this planet, what is it exactly that WE, The People, got?

A Credit Free, Free Market Economy Is Possible.

Both Dynamic on the Short Run & Stable on the Long Run.

I Propose, Hence, to Lead for You an Exit Out of Credit:

Let me outline for you my proposed strategy:


Preserve Your Belongings.

The Property Title: Opt Out of Credit.

The Credit Free Money: The Dinar-Shekel AKA The DaSh, Symbol: - .

Asset Transfer: The Right Grant Operation.

A Specific Application of Employment Interest and Money.
[A Tract Intended For my Fellows Economists].


If Risk Free Interest Rates Are at 0.00% Doesn't That Mean That Credit is Worthless?

Since credit based currencies are managed by setting interest rates, on which all control has been lost, are they managed anymore?

We Need, Hence, Cancel All Interest Bearing Debt and Abolish Interest Bearing Credit.

In This Age of Turbulence The People Wants an Exit Out of Credit: An Adventure in a New World Economic Order.

The other option would be to wait till most of the productive assets of the economy get physically destroyed either by war or by rust.

It will be either awfully deadly or dramatically long.

A price none of us can afford to pay.

“The current crisis can be overcome only by developing a sense of common purpose. The alternative to a new international order is chaos.”

- Henry A. Kissinger


Let me provide you with a link to my press release for my open letter to you:

Chairman Ben S. Bernanke, Quantitative [Ooops! I Meant Credit] Easing Can't Work!


I am, Mr Chairman, Yours Sincerely,

Shalom P. Hamou AKA 'MC Shalom'
Chief Economist - Master Conductor
1 7 7 6 - Annuit Cœptis
Tel: +972 54 441-7640

10:59 PM  
Blogger david hill said...

Nationalization of the banks should have been months ago to try and bring stability to the banking system quickly. I have been saying this personally on blogs since the beginning of last year. With this hesitation, we have got nowhere. When will the government act (or learn) as it is the only way to achieve stability in the banking system and to start getting the country out of this horrendous 'Mess'. The longer we wait the longer and far more damaging to people's lives and incomes it will be. Indeed I estimate that far more personal bankruptcies and corporate liquidations will be the caused through this government inaction than anything else. In this respect the government will be guilty of causing far more human suffering than was necessary. In one word' Stupidity'.

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