Quantitive Easing - should we be printing lots of money NOW!
This is of course a very contentious issue...
I say yes! emphatically! but .... don't give it to the banks, the banks will hold on to it and the people who we collectively need to have it won't be able to get it. Because as we are currently experiencing, the banks don't want to lend their money - they feel it is too risky. If government gives more money to the banks they will simply horde it and the whole exercise becomes pointless.
We are in a Catch 22 situation.... the government is urging us (quite rightly) to conserve any money that we have and to pay off debts and stop spending - problem is, the whole economy lives and dies on the basis of how much we and others spend and right now it's decidely stagnant out there in retail-land.... We need a major surge in high street spending but if no one has any money it simply isn't going to happen!
How about we just give everyone with an income of below £30.000 PA , £5,000 in vouchers that have to be spent on retail goods or services, in other words, they can't pay off their mortage, debts etc, they have to spend it in the High Street.
Sounds crazy? well it probably is and it will certainly spike inflation but will really make a huge difference? I think we all accpet that inflation is on the way up rergardless and in the short/medium term it will create activity and restore some momentum into the market where it is most needed.
Where's the money coming from? Well that's easy - just print it!
I'm sure a lot of people will disagree so let me have them!!
Member since: 28th May 2012
56, married, 3 children - passionate about all things local! Owner of the bestofguildford site, keen supporter of Guildford Rugby Club... serial networker