Monday 14 September 2015
People's QE by the descendants of Mao
No worries about the effects on gilts or inflation; or indeed on the concept of fiat money at all.
This idea by the way, is in reality copied from Communist China, who have been doing the same thing for the past decade or so. They do have lots of nice new cities and stuff, but they also have lots of pollution and corruption as well as a rather tricky economy.
Plus of course, China had consumers to come and consume all the new goodies and hoped that would help repaying some of the debt raised.
In the UK we have no such thing, private debts are high and public debts are high. There is not even a credible plan to pay off the desperate QE we had to do to avert a depression.
Of course, China does not care about the Capitalist system, the Communists just want power and control. We are starting to discover the consequences of this, but in the UK, where is the support for people who would end the way of life that we more of less gifted to the World?
It's a bizarre turn of events.