So far $2 trillion has been created by the Fed and £375 billion by the Bank of England, but where has all this new money gone? It has certainly not appeared in my wallet or bank account – nor has it fattened yours, unless you happen to be a bond trader or banker. The fact is that all the new money has been spent on buying bonds. QE has thus inflated bond prices and boosted bank profits, but achieved little else.
One such radical measure is too controversial for any policymaker to mention publicly, although some have discussed it in private: Instead of giving newly created money to bond traders, central banks could distribute it directly to the public. Technically such cash handouts could be described as tax rebates or citizens’ dividends, and they would contribute to government deficits in national accounting. But these accounting deficits would not increase national debt burdens, since they would be financed by issuing new money, at zero cost to government or to future generations, instead of selling interest-bearing government bonds.
Giving away free money may sound too good to be true or wildly irresponsible, but it is exactly what the Fed and the BoE have been doing for bond traders and bankers since 2009. Directing QE to the general public would not only be much fairer but also more effective.
If printing new money is not a problem then U.S. does not have any debt, no matter what; simply because all U.S. debt is denominated in dollars and U.S. government has unlimited monopoly to print any amount of them.
Hopefully, text above could explain clearly that the problem is not in amount of free money in people’ hands. The main problem is that the same people (many of them, to be precise) got too much free time on hands, i.e. this and many other countries got too many people producing nothing and consuming a lot. That’s it, simple imbalance; and providing lazy bums with extra money may only increase number of bums, while imbalance won’t disappear; it may even become bigger.
"... this and many other countries got too many people producing nothing and consuming a lot. That’s it, simple imbalance; and providing lazy bums with ..."
To look out upon the world, at the suffering of hundreds of millions of your fellow human beings, the wars, the famine, the destruction of habitat, the lack even of wood for your evening fire; and to dismiss all those poor souls as "lazy bums" displays a callousness I thought beneath the dignity of man. Shame on you.
That's right, we need to put people in school (to learn practical skills) and to work (building infrastructure). We certainly don't need more handouts to be spent on who knows what useless crap. Unfortunately, if the government tries to put people to work, Republicans will obstruct, calling it communism. The only government works programs they will support is war.
I know that government programs to create jobs is not ideal, but IMO sometimes it is a necessary evil. Giving tax breaks to the rich and free money to banks isn't cutting it.
Actually they can issue coinage directly to the people without issuing bonds. They could use vaults of unused 1 dollar coins if they wanted.
But they won't because citizens can't be trusted with free cash, they might buy gold or silver or alcohol or firearms with it. Banksters on the other hand can be trusted with free money because they will do what they are told. TPTB can't control where they want money to go if they give citizens free money.
I find it amazingly stupid for you to label over 72 million Americans as ALL supporting what you call "shoveling money to ... more lazy and less poor and only considered poor because they will not work."
Raw bigotry! At least you show your real colors.
I've tried to explain to you morons that the 1960's War on Poverty WAS NOT a liberal plot to ruin the wealthy, but was in reality an attempt to save our cities. Why not learn a little actual American history instead of filling your head with RW radio lies?
I am as opposed to "lazy bums" getting free money as any other person on this board! But I also know that the dollars given to the few welfare cheats don't even come close in cost to the corporate welfare that both parties continue to support. You know, when you pick on the poorest and weakest members of society, while ignoring bloated corporate subsidies, i.e. oil and agriculture, not to mention the trillion dollar- totally unnecessary Iraq war, it shows you have all the courage of a bully.