Too much borrowing will cause Sterling to weaken it doesn’t matter wether is QE or selling to the market.
Katie, could you please explain, preferably in words on one syllable, why 'sterling will weaken'.
The problem with QE is that many see it a not having to be repaid, they don’t realize it is included in the National Debt.
Also, who are 'they'? And why are you mangling the meaning of the word 'debt'? A debt is something owed to someone. QE is created money, not borrowed. It is not debt and doesn't have to be repaid to anyone. Why are you so desperate to make it into a debt?
The only 'debt' element of the deficit is the the money invested in government bonds and government savings instruments. People and institutions 'lending' money to the government, as they have done for centuries for the very good reason that it has been a safe and reliable place to put their money and generates and income from interest paid on the investments. It would be utterly ridiculous for the government to redeem all this. The money would just go elsewhere.
The fact is that the UK never has a surplus to repay any debt, when a loan ends another is taken out to replace it
So what are you worrying about? It's been like this for centuries...
the aim is to give our economy a boost and increase growth,
The only way this is going to happen is for the government to put a great deal of money into the economy. £billions are needed to improve every aspect of our public services and every penny spent on this will benefit private enterprises, large or small, because the government makes just about nothing in the way of resources for any public service it finances. With international trade rapidly diminishing as a result of Brexit, and very little foreign direct investment; as far as I can see, a key source of revenue for UK enterprise is going to be its home market.
SNP and Greens end coalition deal
Scottish political mess. Is Devolution working?
