Comments on: Accounting for PFI http://www.taxresearch.org.uk/Blog/2007/08/01/accounting-for-pfi/ Richard Murphy on tax and corporate accountability Sun, 07 Sep 2008 03:47:56 +0000 http://wordpress.org/?v=2.6 By: Titus Alexander http://www.taxresearch.org.uk/Blog/2007/08/01/accounting-for-pfi/#comment-419573 Titus Alexander Mon, 21 Apr 2008 08:42:43 +0000 http://www.taxresearch.org.uk/Blog/2007/08/01/accounting-for-pfi/#comment-419573 Hi Richard, Questions rather than comments: Can you tell me where the Government/Bank of England got the £50bn it is pumping into the financial system? Am I right that this is “new” money, created into circulation against the collateral of mortgage debt held by banks? Would it be technically possible for the BoE to create zero interest bonds? And could they be used to fund PFI, for example: the Bank would then own local authority and other public service assets, rather than PFI companies, and the interest costs would be less – ie zero. If so, could this be a way of putting debt-free money into circulation? Does a rights issue, or any new share issue, put new money into circulation? Hi Richard,
Questions rather than comments: Can you tell me where the Government/Bank of England got the £50bn it is pumping into the financial system?

Am I right that this is “new” money, created into circulation against the collateral of mortgage debt held by banks?

Would it be technically possible for the BoE to create zero interest bonds?

And could they be used to fund PFI, for example: the Bank would then own local authority and other public service assets, rather than PFI companies, and the interest costs would be less – ie zero.

If so, could this be a way of putting debt-free money into circulation?

Does a rights issue, or any new share issue, put new money into circulation?

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