Print your way out of debt - Zimbabwe style

Bank to use 'newly created' money

The Bank of England is launching its latest attempt to boost the supply of credit and stimulate the UK economy, using £75bn it has, in effect, created.

It has begun offering to buy £2bn of government bonds from investment institutions and individuals, in the first of a series of auctions.

The aim is to get the Bank's newly created cash out into the wider economy and encourage greater lending.

The Bank said last week it would pump £75bn into the economy, having cut interest rates to an all-time low of 0.5%. It has government permission to inject a further £75bn into the economy if it wishes.

COMMENT: England has gone ahead and printed £75bn of 'counterfeit' currency to pay off their debt - just like Zimbabwe has been doing for years. Every time they release some of that newly minted currency, it surely deflates the value of the existing British Pound (£). BTW in Zimbabwe, Approx 75 per cent of population requires food aid right now

Used in isolation, that might improve Emgland's finances at the global level but it must also weaken the buying power of their own currency. If it does indeed work for the British, it follows that every other country will do the same thing and devalue their own currencies negating the idea in the first place.

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