All of this money we've borrowed to bail out Greece and others, including the latest failing Bank or whatever, just where does the money end up?
Are we just pushing money into dodgy banks that instantly gets handed over to good banks? Are we being robbed blind to support the uber-rich?
Because no-one in the media has ever explained where the money eventually ends up.
I also have a question about quantative easing: if we make more money available basically out of thin air, doesn't that devalue the currency already in circulation? For instance if I had £10 worth of hard assets, if I'd lent out £10 in cash to 10 people (each effectively having £1) each person would have effectively £1, but then if I decided to lend out another £10 to another 10 people, wouldn't that original £10 be worth half its value, because I've still only got £10 to repay to people(effectively £10 spread across 20 people is 50p each)?
Of course QE hits me personally, because if the pound is effectively devalued, then it makes imports from Japan and China more expensive, which hits the business I work for. It makes foreign sourced parts more expensive and reduces margins, therefore it puts importers out of work. Of course the upside is our exports become cheaper. But then again, whos buying? China? Maybe for now, but when their industry masters quality control and starts to manufacture proper quality luxury goods, we'll be well and truly buggered.
St. Giles knocks ‘em Red in the Aisles. - “If Paradise is half as nice” as Amen Corner, one of those forgotten bits of Wren designed gentile London, whence Giles Fraser was once privileged to lay h...
3 weeks ago