Realist, not conformist analysis of the latest financial, business and political news

The Bank Of England Must Sell The Quantitative Easing Bonds – Now!

A Richard Murphy

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.

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MrVeryAngry
MrVeryAngry
1 year ago

Government bonds are rock solid guaranteed? A complete and utter myth. Government bonds are a history of default and/or inflation to destroy their value.

Spike
Spike
1 year ago
Reply to  MrVeryAngry

As is often the case, the relevant question is: “Compared to what?”

Bloke in Germany
Bloke in Germany
1 year ago

Just wondering, why won’t the BoE, or the FED, or the ECB, give me a loan at a peppercorn interest rate that never has to be repaid? It’s discrimination, I tell you.

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