Are we starting to see the wage increase vs inflation increase death spiral?

[danlightbulb]

So why can't I set up my own banking business? Inject £10k equity and use that with the multiplier rules in place to lend myself back £100k from the business? The business will hold a balance sheet of -£90k and I'll have +£90k in my own account as new money.

 

[Quartz]

inflation pressures in the UK are mostly external.

Nothing to do with printing hundreds of billions to counter Covid?

 

[200sols]

Nothing to do with printing hundreds of billions to counter Covid?

That isnt what I said was it. Wage growth didn't create those billions....

 

[200sols]

Because those parts I "selectively" didn't quote are not relevant to the statement of "Loans come from a bank using existing money". In most cases they don't come from existing money as per the sections I quoted.

You're only telling half the story though aren't you.

 

[Quartz]

That isnt what I said was it. Wage growth didn't create those billions....

You said that inflation pressures were mainly external. The government printed money to ease the impact of countering Covid. Now we're paying the price. THat's an internal factor, not an external one; the government could have refused any funding.

 

[200sols]

You said that inflation pressures were mainly external. The government printed money to ease the impact of countering Covid. Now we're paying the price. THat's an internal factor, not an external one; the government could have refused any funding.

The BoE says 80% of our inflation pressures are external I didn't just pluck it out of thin air.

 

[arknor]

The BoE says 80% of our inflation pressures are external I didn't just pluck it out of thin air.

80% of statistics are total crap thought up on the fly.

yea its not our fault the currency isn't worth much on exchanges these days it's all putin and chyna

 

[Zenduri]

People are not necessarily shouting and screaming to help themselves, many of us are doing ok thanks, many of us want a better run country. Were not going anywhere, we like the UK in the whole we just think it could be better. One of the steps to that is a better government.

You could argue many are in fuel poverty as well as normal poverty and they aren't doing very well. Food bank usage is rocketing and don't let personal circumstances taint your view

 

[StriderX]

80% of statistics are total crap thought up on the fly.

yea its not our fault the currency isn't worth much on exchanges these days it's all putin and chyna

Why is the dollar doing so well then?

 

[BongoHunter]

I'm pretty sure quantitative easing was not printing money.

I always thought it was the creation of new money - what is it then?

 

[chroniclard]

You could argue many are in fuel poverty as well as normal poverty and they aren't doing very well. Food bank usage is rocketing and don't let personal circumstances taint your view

Er yes, which is why we need a better government.

 

[Deleted User 298457]

80% of statistics are total crap thought up on the fly.

yea its not our fault the currency isn't worth much on exchanges these days it's all putin and chyna

Imagine engaging with someone who posts this

 

[arknor]

Imagine engaging with someone who posts this

you just did.


you probably believe food prices are rising because Russia has kidnapped Ukraines grain

 

[Hades]

You're only telling half the story though aren't you.

Half the story to what? You stated that that loans are serviced from existing money. I pointed out the BoE says that's not the case.

What are you referring to?

 

[StriderX]

you just did.


you probably believe food prices are rising because Russia has kidnapped Ukraines grain

Food prices are rising because of high energy costs and crop failures.

 

[Hades]

Food prices are rising because of high energy costs and crop failures.

And Thatcher

 

[200sols]

Half the story to what? You stated that that loans are serviced from existing money. I pointed out the BoE says that's not the case.

What are you referring to?

That the money isn't created out of thin air.

 

[Deleted User 298457]

That the money isn't created out of thin air.

Did you not know? It's on the secret worksheet where the books don't need to balance.

 

[arknor]

Food prices are rising because of high energy costs and crop failures.

yea costs a lot of electric to keep that field warm and lit.

I thought it was rising nutrient costs, which are probably mostly bi products anyway

That the money isn't created out of thin air.

https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/policy-statement/2021/october/ps2121.pdf

 

[Hades]

That the money isn't created out of thin air.

Please quote the post where I say it is created out of thin air. However it is certainly created to service the loan, as per the BoE page I quoted.