UK projected fiscal deficit for this year (the amount by which government spending exceeds collected revenues): £175 billion
Amount of “quantitative easing” sanctioned by the Bank of England so far: £175 billion
Now there’s a funny coincidence, eh?
If I started up my own printing press to churn out money and tried spending that money in the shops (even if my equipment produced notes that were indistinguishable from the “real thing”), I’d be liable to be arrested for the crime of counterfeiting.
Why is that?
The State would say, “Because your money isn’t real.”
I could retort, “My printing press produces currency that even your best experts cannot distinguish from that produced by the Royal Mint”.
The state responds, “It is not how accurate your copy of money is that gives it its value”.
Me, innocently, “Oh? So what is the problem with me printing money then?”
The state, “Ha! If you can just create money with a printing press at minimal cost, what value does it have? If everyone could do it, who would bother working? You would have obtained something for nothing! "
Me, “A good point. OK, so when the state creates money out of thin air, how does that add anything of value to the economy? Has not the state obtained something for nothing also?”
State, “Humph. Erm…”
Me, “I’m just a bit puzzled. Money creation by anyone is forbidden, because if it were permitted money would cease to have value. Yet when the state creates new money, it does have value? What’s so magic about your printing press?”
State, “Because we call ours QUANTITATIVE EASING”. Does that answer your question?
Me, “Not in the slightest.”
State, “QUANTITATIVE EASING!!! QUANTITATIVE EASING!!! TREMBLE BEFORE OUR INCOMPREHENSIBLE JARGON!!!”
Me. “Nope. I don’t think so. Just a thought – perhaps you know you cannot afford to borrow that £175 billion this year, so you’re simply printing off (electronically) the money you need, diluting the value of the pound in the pocket of every single person? In other words, a stealth tax levied on everybody regardless of ability to pay, because if you tried to raise £175 billion this year in an honest way, by raising taxes, you’d be lynched?
State, (muttering), “We’re sick of these questions. Let’s go and do a BBC interview. “
Me, “Good idea, mention some bollocks about falling prices being a terrible evil while you’re there, they love that one! Bye!”
Printing money does not add one penny of real wealth to the economy. There is no magic money tree. Quantitative easing is simply theft by the government of your hard earned cash to bail out themselves and their financial entourage who destroyed our economy with their reckless greed. FUCK THEM AND FUCK THE GOVERNMENT.