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?
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?
posted by Dan Hind at 4:17 PM
3 Comments:
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'.
nice post. thanks.
https://sketchfab.com/isocialhub
http://www.thereminworld.com/user/isocialhub
https://www.smashwords.com/profile/view/isocialhub
http://twitxr.com/isocialhub/with_friends/
Post a Comment
<< Home