economics – Boadicea's Chariot

In January 2011 I wrote ”A very European Road to Perdition’, which I posted on the ‘dark side’. The article was taken from the ‘Daily Reckoning’ web site. As this site gives out financial advice, my inherent cynicism of human sincerity and merit clouded my views on its veracity. At the time there was a critical comment on my view that contributors to the site were ‘snake oil salesmen’. I now think quite rightly so and withdraw, with some reservation, my comment about ‘snake oil salesmen’. However, I keep my view that politicians are ‘snake oil salesmen’. I’m with Diogenes in the adage that “It takes a wise man to discover a wise man” , and await my epiphany.

Here is my dark side post – revisited. Bill Bonner writing from Paris for the ‘Daily Reckoning’ claimed that the US road to bankruptcy is running parallel to France. He stated that; Continue reading “A very European road to perdition -revisited!”

Quantitative Easing supposes to improve the economy through purchase of British Government bonds (gilts) and high quality (investment grade) bonds from private sector companies (banks, pension funds, insurance companies and non-financial institutions). By doing this the Bank is able to inject money directly into the economy and the companies that need it. This is in the belief that printing money and rising prices mean that they are creating value. But wait a minute ‘purchase government bonds’? That is, buy gilts to provide the exchequer with money that the government needs to meet a budget deficit! Gilts that creat more debt that the government needs to honour in terms of returning any capital invested plus any promised interest. A debt serviced through taxation. An article by Frank Chodorov with the title Don’t buy Government Bonds puts it this way: –
Continue reading “Cognitive Teasing or Quantitative Easing?”