| Bank debt slavery (part 97856) 07:32 - Aug 29 with 1462 views | BanksterDebtSlave |
https://www.theguardian.com/politics/2025/aug/29/treasury-tax-big-banks-quantita
“What started as a programme to boost the economy is now a massive drain on taxpayer money,” he said. “Public money is flowing straight into commercial banks’ coffers because of a flawed policy design. While families struggle with rising costs, the government is … [in effect] writing multibillion-pound cheques to bank shareholders.”
The emergency policy, first enacted in 2009 during the global financial crisis, involved buying up £895bn of bonds from the UK’s banks and, in exchange, crediting them with reserves at the Bank of England.
The Bank is now winding down QE – a process known as “quantitative tightening” (QT) – by selling the bonds at a rate of £100bn a year, but these sales are taking place at a loss.
In accordance with a promise from Alistair Darling, then chancellor, the Treasury bears the financial risks of QE, so these losses hit the government’s finances.
In addition, the higher Bank of England base rate, now set at 4% to combat above-target inflation, means the Bank is paying out higher interest rates on banks’ reserves than it is receiving on the bonds it holds. In total, these losses amount to a £22bn-a-year hit to the public finances, according to the IPPR.
Jung calls for the Treasury to tax the big banks on their QE-related reserves, saying the profits of the big four have more than doubled since before the Covid pandemic.'
...but stop the boats and fly the flag.....or something! |  |
| |  |
| Bank debt slavery (part 97856) on 15:34 - Aug 31 with 96 views | mellowblue |
In 2009 UK government borrowing was a historically high budget deficit, exceeding 10% of GDP for the first time in peacetime, because of falling tax revenues and increased spending from the 2008 financial crisis and recession. The current account (income against outgoings) was weak. Ironically, it was almost respectable given the borrowings since Covid reared it's head.
As for net debt, it doubled between 2008 and 2010, from 35% to 70% as a result of recession and raised borrowings and has been on an upward trajectory ever since no matter what government is in power. If you remember, a Labour Treasury official left the famous note to his Tory successor "I'm afraid there is no money left" which highlighted the indebtedness (and led to the austerity years). Done in good faith and probably out of relief to be moving on, but still a bit of an own goal at the time |  | | |
| Bank debt slavery (part 97856) on 16:58 - Aug 31 with 81 views | DJR |
| Bank debt slavery (part 97856) on 15:34 - Aug 31 by mellowblue |
In 2009 UK government borrowing was a historically high budget deficit, exceeding 10% of GDP for the first time in peacetime, because of falling tax revenues and increased spending from the 2008 financial crisis and recession. The current account (income against outgoings) was weak. Ironically, it was almost respectable given the borrowings since Covid reared it's head.
As for net debt, it doubled between 2008 and 2010, from 35% to 70% as a result of recession and raised borrowings and has been on an upward trajectory ever since no matter what government is in power. If you remember, a Labour Treasury official left the famous note to his Tory successor "I'm afraid there is no money left" which highlighted the indebtedness (and led to the austerity years). Done in good faith and probably out of relief to be moving on, but still a bit of an own goal at the time |
Yes, it was the financial crash beginning in 2007 and emanating from the US "wot done it", not Brown being spendthrift, although the Tories successfully pushed the narrative that it was all Labour's fault, ignoring all the other countries in the world affected by the crash.
And of course, if the UK and other governments had done nothing, there would have been financial armageddon.
Incidentally, people I knew in the Labour Party at the time felt that the failure to challenge theTorry narrative was a direct consequence of the hiatus when Labour had no leader following the General Election.
[Post edited 31 Aug 17:08]
|  | | |
| Bank debt slavery (part 97856) on 17:25 - Aug 31 with 43 views | mellowblue |
| Bank debt slavery (part 97856) on 16:58 - Aug 31 by DJR |
Yes, it was the financial crash beginning in 2007 and emanating from the US "wot done it", not Brown being spendthrift, although the Tories successfully pushed the narrative that it was all Labour's fault, ignoring all the other countries in the world affected by the crash.
And of course, if the UK and other governments had done nothing, there would have been financial armageddon.
Incidentally, people I knew in the Labour Party at the time felt that the failure to challenge theTorry narrative was a direct consequence of the hiatus when Labour had no leader following the General Election.
[Post edited 31 Aug 17:08]
|
politics innit. Never trust a politician when he is blaming a rival. Labour were quick to blame the Tories over the inflation surge which was a pan-Europe event.
The Brown spendthrift comment was an answer to some one who was talking about Brown in general, no where have I blamed Brown for the crash, though we were not in a strong position to deal with it. Brown inherited a decentish finacial position from the Tories, having had to re-build after their own problems with black Monday etc. He maintained that course and was known to be prudent. He was more expansive as p.m.
As you say governments the world over had no choice other than to save their banking sector where commercial take-overs were not viable. Not to would have been carnage and would have taken years unwinding all the various mortgage, savings, investment and loan accounts. Does not bear thinking about. | | | |
| |
By continuing to use the site, you agree to our use of cookies and to abide by our Terms and Conditions.
