It’s a little bit like Two Tens for a Five.
You repay me £20 pounds of your Real Business Money, for the £5 Dodgy Pounds which the Central Banks simply printed, and lent to me, Your Local Bank, based on fresh air.
A former senior Treasury mandarin has compared quantitative easing to heroin and called for an end to almost a decade of electronic money printing by central banks.
Thread-needle Street initially began pumping £200bn into the gilt market in 2009 to boost the economy, before expanding the programme to £435bn, including an extra £60bn following the EU referendum.
The bond buying scheme is similar to massive stimulus packages used by other countries, such as the US Federal Reserve’s $4.5tn and its sill going on!
Calls come as pressure mounts on the world’s central bankers to give more clues about how they intend to exit QE in a process known as “normalisation” almost a decade on from the crash.
While QE is credited with lowering borrowing costs and helping banks to lend more to consumers and businesses, critics say such schemes inflate assets owned by the richest in society, while punishing savers without large amounts of wealth.
Simply put, it’s a Con!!!