tag:blogger.com,1999:blog-5889026769761133073.post418065422758108851..comments2023-12-22T08:42:36.132+00:00Comments on Gaian Economics: Rock and Roll SuicideMollyhttp://www.blogger.com/profile/12845612174674783187noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5889026769761133073.post-27253683793635629812008-11-11T23:29:00.000+00:002008-11-11T23:29:00.000+00:00PS I've reported it and a few others.http://help.b...PS I've reported it and a few others.<BR/><BR/>http://help.blogger.com/bin/answer.py?answer=42577<BR/><BR/>No need to publish my two comments, just delete the spam.weggishttps://www.blogger.com/profile/04651722712995395981noreply@blogger.comtag:blogger.com,1999:blog-5889026769761133073.post-41620746583174611612008-11-10T22:44:00.000+00:002008-11-10T22:44:00.000+00:00Keep up the good work.Keep up the good work.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5889026769761133073.post-33669297994956491362007-11-20T12:19:00.000+00:002007-11-20T12:19:00.000+00:00In response to Bill, Jock rightly questions whethe...In response to Bill, Jock rightly questions whether the money that was used to bail out Northern Rock came from direct creation, i.e. without cost to the taxpayer and with seignorage value going to BoE. Or whether it was created by selling government bonds. The Bank is so secretive I don't know whether we will find out about this for some while.Mollyhttps://www.blogger.com/profile/12845612174674783187noreply@blogger.comtag:blogger.com,1999:blog-5889026769761133073.post-55642521733553542832007-11-20T08:36:00.000+00:002007-11-20T08:36:00.000+00:00Can the Bank of England create non-cash money out ...Can the Bank of England create non-cash money out of thin air just like commercial banks can? <BR/><BR/>If so, then why didn't it do so to bail out Northern Rock? <BR/><BR/>If it did, why does the media and politicians keep talking about the taxpayers having to lose out?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5889026769761133073.post-3904577678627010542007-11-19T21:59:00.000+00:002007-11-19T21:59:00.000+00:00You're right there is something a little awry with...You're right there is something a little awry with my numbers. I use something called the Public Finance Databank which you can find <A HREF="http://www.hm-treasury.gov.uk/economic_data_and_tools/finance_spending_statistics/pubsec_finance/psf_statistics.cfm" REL="nofollow">here</A>. My set from 2005-6 says that health that year was projected to be £96bn and I am sure I read somewhere that this year, which is the last of the previous CSR period, was going to be £110bn but I see from the current year's <A HREF="http://www.hm-treasury.gov.uk/media/8/A/publicfinancesdatabank251007.xls" REL="nofollow">Public Sector Finance Databank (excel file)</A> it is still showing as £96 bn - maybe so many have died from MRSA that they hae saved £15bn or something! More likely it's been money announced more than once by Gordo in his enthusiasm for showing how much more he's been spending!<BR/><BR/>I'd be interested to see Conal Boyle's article - do you know of <A HREF="http://www.neweconomics.org/gen/z_sys_PublicationDetail.aspx?PID=81" REL="nofollow">"Creating New Money"</A> by James Roberston for the NEF a few years ago which explains seignorage quite well (but over a hundred pages). My impression is that the BofE actually makes very little in seignorage because it never actually creates the money it would be entitled to do - that the commercial banks effectively gain that seignorage by creating new debt. Which is why it would be interesting to see how the Northern Rock lending has been funded - whether by the BofE borrowing or by actually creating that new credit and gaining some seignorage at last.Jock Coatshttps://www.blogger.com/profile/15550558005508328017noreply@blogger.comtag:blogger.com,1999:blog-5889026769761133073.post-37666924202762353632007-11-19T12:28:00.000+00:002007-11-19T12:28:00.000+00:00Hi JockI knew somebody would query that figure (!)...Hi Jock<BR/><BR/>I knew somebody would query that figure (!). It is based on the figure of £52bn. that I found in government accounts a couple of years ago for health spending. I know spending has gone up since then but it's hard to believe it's doubled. Can you tell me where you find your figure? I don't understand why government accounts are so hard to read and it makes me suspicious. My figure does not include capital investment or off-balance-sheet accounting via PFIs. Perhaps your does?<BR/><BR/>On the Bank of England, there workings seem even more opaque. I have an excellent 2pp. A4 article from Connall Boyle working out the value that accrues to the bank from seignorage if that is of interest.Mollyhttps://www.blogger.com/profile/12845612174674783187noreply@blogger.comtag:blogger.com,1999:blog-5889026769761133073.post-49091229723871137702007-11-17T22:01:00.000+00:002007-11-17T22:01:00.000+00:00To be fair I think you'll find it's only about 38%...To be fair I think you'll find it's only about 38% of health spending which is this year set to top £110bn I think.<BR/><BR/>What it is though, and probably a better comparison, is about 75% of all the notes and coin in circulation. It would be an interesting exercise to have a look at the Bank of England balance sheet to see where it all came from. They must have either created it or borrowed it.Jock Coatshttps://www.blogger.com/profile/15550558005508328017noreply@blogger.com