Thanks to all who read this blog in 2022. The final readership data was as follows:
The third-best year ever.
But the focus was on Twitter, where followers increased from around 90,000 to 220,000.
It was a busy year, despite the impediments life threw at me.
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Well, thank you for making the blog so unmissable. Your Twitter link helps me to see what you up to on there too. Hopefully it is getting people to ask more questions.
Oh dear,
More rubbish from the Times.
https://www.thetimes.co.uk/article/taxpayers-to-pay-167bn-for-qe-kmt2dcl0t
Sadly some less informed readers will probably believe this non-sense.
It is total garbage, of course
This is why I search your blog when tough questions come up.
This Bank of Canada paper seems to beg the question – why didn’t the Bank of Canada buy the bonds directly from the government? These are two particularly perplexing parts of the short paper
https://www.bankofcanada.ca/2022/06/understanding-quantitative-easing
1. Where we buy the bonds
As part of our normal operations, we buy bonds directly from the government to help us balance the stock of bank notes that exists on our balance sheet. But under QE, we buy bonds only on the open market. QE doesn’t finance government spending, because we buy bonds that have already been sold by the government to banks and other financial institutions. [It is my understanding that any asset purchase by either the central bank, or commercial banks creates money, therefore their premise is wrong by their own standards . ]
2. It’s important for central banks to be independent from the government. Simply put, the power to create money should be kept separate from the power to spend money. [ I found that ironic given the government spends for the welfare of the people and banks lend for the benefit of shareholders]
If I get time 8 will address 5his today, but the year is starting busily