Comments on: The QE billions should go direct to consumers

By: markhillary

markhillary — Mon, 17 Oct 2011 18:47:38 +0000

@Alisdair I think you are entirely right. I guess that’s why Keen’s argument that private debt be wiped out, combined with a windfall for consumers, might be far more effective than any bank bailout.

Of course, you could then go on to argue that the entire capitalist system – with expectations of growth – is broken… in which case, where do we go from here because there has never been a good example of any socialist utopia.

By: AlisdairWilkes

AlisdairWilkes — Fri, 14 Oct 2011 09:23:16 +0000

The trouble is even if everyone got a £1000 to spend, so what? There would be a blip in GDP figures, a number of retailers that are going to go bust will get a stay of execution of 3 months…6 months?

It’s still a short term solution to long-term structural problems that we have allowed to get out of control in the west.

The really worrying thing is we’re still not really putting the long term fixes in place with any real sense of urgency.

By: mbrmark

mbrmark — Fri, 14 Oct 2011 09:21:36 +0000

I think the article’s premise is good, although I doubt there is much chance of it happening. Debt write-off is brilliant idea, although it will never happen. All of these things proposed would actually help the little person, so it will never happen . I think that should be obvious to anyone with any familiarity with British politics.

By: markhillary

markhillary — Thu, 13 Oct 2011 15:24:33 +0000

I haven’t written this article as an attack on the Chancellor or the coalition itself. The problem is really that once received wisdom and the establishment says that one course of action is the only possible one – austerity for example – then how can anyone offer an alternative? Keen’s views are radical, but not without some foundation. How many unbelievable actions have been taken since this crisis struck anyway?

By: mbrmark

mbrmark — Wed, 12 Oct 2011 16:10:31 +0000

Can anyone seriously imagine Osborne helping the little person!.

By: markhillary

markhillary — Wed, 12 Oct 2011 14:17:22 +0000

Billy, I’m afraid that you are probably right. Many European countries will see mass-migration as the answer. If you were living in Greece and had skills you could sell elsewhere, then would you stay as time get harder and harder?

By: Billy360

Billy360 — Wed, 12 Oct 2011 13:46:54 +0000

What gloriously simple proposals. However, the practical problems of writing off unsecured debt or handing new money supply directly to where it is required, while laudable would no doubt prove insurmountable.
Instead, the latest round of QE money will probably be sat on by the major banks as they further strengthen balance sheets before the next financial crisis whacks the UK and other Western economies where it hurts.