Printing Money: The Pamphlet
By: JACOB GAFFNEY
July 14, 2009 10:29 AM CST
Well, we did push for simpler explanations.
The Bank of England is creating more money in an effort to increase spending. And Great Britain’s Deputy Governor for Monetary Policy, Charlie Bean, wants to make sure the public understands this process by undertaking a seven-day tour ending on Monday across different parts of England, Scotland and Wales.
He is also distributing perhaps the most powerful tool of information dissemination known to man: the pamphlet.
The Bank’s pamphlet explains (excuse the bait-and-switch) that no new money will actually be printed. Ouch!
“Instead, the bank buys assets from private sector institutions (didn’t Ministers of Parliament sound out on the BBC that such programs aren’t working?) and credits the seller’s bank account,” the Quantitative Easing Explained pamphlet states. “So the seller has more money in their bank account, while their bank holds a corresponding claim against the Bank of England (known as reserves).”
“The end result is more money out in the wider economy.”
Bada-Boom, Bada-Bing.
At least the pamphlet is worth the paper it’s printed on.
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