This is the message from the leading financial, economic and social commentator of our day, the Sage of Ely. That the Bank of England must stop sitting on the stock of bonds issued to perform quantitative easing and sell them into the market immediately.
This is, of course, entirely different from the Senior Lecturer’s previous insistence that the Bank of England should, in fact, just cancel said bonds and pretend that they were never issued. But then as Keynes said, when the facts change I change my mind.
The proof is here:
Of course the bond markets aren’t fazed by more borrowing: they want all the bonds the government can issue and then some more
Said markets desire the safety, nay iron clad security, of the government guarantee. Given that government should indeed give markets what they want, when they want it – this being what the retired accountant from Wandsworth is telling us – then that stock of £400 billion and change of QE bonds should be sold into the financial markets, not left mouldering in the basement at Threadneedle St. For whatever the monetary implications of this that need for security, copper bottomed certainty, is more important.
Of course, that he’s said this will be adamantly denied by Richard Murphy but that’s only because he so rarely does know what he’s saying.