DaisyAnne
This is Richard Murphy following up his twitter thread in an interview on Byline TV
It's not heavy so worth watching through to the end.
Yes thanks for that. I’ve been too busy to do any sort in-depth thinking lately - just chatter on GN, but I do intend to try to get to grips with this issue.
Take away from video is……….
Banks have benefited enormously from Q/E to the tune of 9bn£ since first the crash and recently covid.
The reason being that the government used quantities easing first to shore up the failing banks and more recently to “pay” for covid.
Right I definitely get the first where money was thrown at the banks. Have they ever paid it back?
But my difficulty is with the covid funding. So Murphy is suggesting that in order for it to pay for covid, including all the fraudulent supply of PPE, test and trace etc. they needed the BoE to print money in the form of Q/E and to release this to the central banking system, to allow the government to move this around to pay for covid. Right I get that, but now I come unstuck.
So the Central banking system is the method by which banks move money around between each other.
So when it receives a large amount from the BoE we assume it is then instructed by the government to first move it to the government retail bank? Then supply is paid for in the usual way?
Or the government instructs the BoE to pay for its supply by moving the money into the banking retail system and appropriate banking account as necessary.
How does it work. Where do we get our pension from?
That’s puzzle 1 - I think that is probably easily resolved with a bit of research.
But puzzle 2 is more difficult I think.
So Murphy is suggesting that not only did the commercial banks benefit massively from the first tranche of Q/E which I can see as the money stopped with them. But hoe did they benefit massively from the second tranche of Q/E if the money was ostensively used to pay for covid?
Isn’t it all gone into the suppliers pockets?
