Coronavirus

[Muddy Retriever]

From Ann Pettifor's "The production of Money" - pages 16 -22: ...a loan to AIG of $85 billion ...it was transferred in just an instant after all 11 numbers had been tapped into the computer ... It is what banks do every day ... the spending is created out of thin air ... savings do not fund ... if well managed, there need never be a shortage of money for society's most urgent projects.

Peston, in WTF, calls QE creating money, just to show that some economists think that way - the sum? £535 billion in 2009 - yes, billion.

I would strongly recommend Pettifor's book.

With regard to banks producing money out of thin air, this is a good article, which explains that they don't. Banks have to hold healthy assets as well as Sterling reserves.

https://voxeu.org/article/banks-do-n...y-out-thin-air

As it concludes, if banks were indeed able to create money out of nothing, why would we need to bail them out?

We all know about QE, the Bank of England, The Fed and ECB have all done it and will continue to do so, especially now. But central banks buying bonds from institutions is not the same as printing money to finance expenditure. The debt is not eliminated and remains on their Balance Sheets. But even this is likely to cause inflation if it gets out of control.

What country has printed money specifically to fund expenditure without causing inflation?