Monday, November 16, 2009



But are these two strategies really compatible? Through quantitative easing, the government increases the money supply through repurchasing government debt with newly created money. This may lead to long-run inflation, making gilts more unattractive to investors because they are making less real return on their investments. This is reflected in the decrease in the yield rate. However, the fiscal strategy of increasing government spending is financed through the auction of government bonds, which are already made unattractive through the quantitative easing program.

In essence, the UK’s Central Bank is the biggest buyer and seller of its own debt. Are the two strategies of quantitative easing and economic stimulus by the UK’s central government contradictory? Should the government decide to either buy gilts or sell gilts, and not both? What impact does the auction failure of government bonds have on foreign investors looking to put money in the UK’s economy?



... it can work but it has to bypass debt ...
... the governments have to bypass the central banks ...
... stop emmitting bonds ...
... and print currency directly ...
... and if the banks object send in the army ...
... "and" make illegal the money printed by the central banks ...
... "revoking" the central banks "delegated authority" and "mandate" ...
... the greenback permitted the US to win the civil war ...
... this is history ...

... now this in the US resulted on a president assassination ...
... and wall street would surely enter war against whoever ...
... opposes their monopoly of currency ...
... so this is a "three way" problem ...
... that needs to be considered in terms of continuity of government ...
... at European level ...
... exiting NATO first ...
... because there is a clear conflict of interest ...



United States Note
From Wikipedia, the free encyclopedia

Large-sized Series of 1880 United States Notes; the $20 note displays Alexander Hamilton and a red scalloped seal, and the $10 Daniel Webster and a large red spiky seal

A United States Note, also known as a Legal Tender Note, was a type of paper money that was issued from 1862 to 1971 in the U.S. Having been current for over 100 years, they were issued for longer than any other form of U.S. paper money. They were known popularly as "greenbacks" in their day, a name inherited from the Demand Notes that they replaced in 1862. They were called United States Notes by the First Legal Tender Act, which authorized them as a form of fiat currency, but because their value derives from their status as legal tender they bear the inscription "This Note is a Legal Tender" and are often called Legal Tender Notes. They were originally issued directly into circulation by the U.S. Treasury to pay expenses incurred by the Union during the American Civil War. Over the next century, the legislation governing these notes was modified many times and numerous emissions were undertaken by the Treasury.






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