Operation Helicopter: Could Free Money Help the Euro Zone?

Operation Helicopter: Could Free Money Help the Euro Zone? - -> spiegel.de/international/bus … 11352.html

credit revulsion

IMHO, in a macro sense, the current plan of European bond purchases is just the ECB stepping in to take the slack as the Fed steps out of QE.

All it’s doing is providing a continuing line of financial methadone for the global banks.

“Trickle up” economics might not be the craziest idea in the room.

Blue Horseshoe

The floppy haired one makes the very good point that the central banks buying assets isn’t helping poor people because only rich people have assets.

davidmcwilliams.ie/2015/01/1 … -different

T’was a spot-on article.

Hopefully not too prognostic. Rising power of populist extremism is going ignored for too long I fear…

Does “credit revulsion” include within it’s auspices “debt payment revulsion”? :nin

If the ECB are going to print €1tn the would be better giving each citizen €2k, if you have debts you have to pay them down. Otherwise you are free to spend or save.

It sounds so obvious.

I was actually thinking of the logistics of this recently.
You have a fingerprint database.

You provide your fingerprint and show ID (Passport/Drivers licence).
But the ID is not kept on file.
It is just used to confirm you are an EU citizen.

The fingerprints are then checked to confirm that you have not tried to claim before.
€2,000 cheque immediately handed over.

Of course it would be better to give it to every citizen.

But that won’t make the investment bankers richer.

There’s a hilarious video on Youtube from the BoE explaining how QE injects money “directly” into the economy. After several rounds of the financial institutions taking their cut of course…

youtube.com/watch?v=J9wRq6C2fgo

Democratically accountable member states govts already have a number of channels for equitably distributing and re-distributing money: tax cuts, welfare, spending on services and infrastructure etc.

So central bank buys and writes off govt debt, govt spends less on interest payments, spends money through these channels.

Simples, but NEIN!!! Because Weimar etc.

Not quite “writes off” as far as I can make out from this

ello.co/lorcanrk/post/FmWA9QR39NpNbxZBaWilPw

Things is not as black and white as you think they might be.

+1 - I don’t see that the transmission mechanism would be difficult.

Rather than write off, no duration zero coupon bonds bought at par. Given interest rates are effectively at zero anyway, this wouldn’t be much of a stretch and since the NCBs hold the debt, the risk (there is none since they have no duration and no coupon payment) stays with the nation state.

I think in social kleptocracies like ours, it would be advisable that the form of measure, the duration, and the amount to individuals be specified, i.e. this money is for x, this for y.

Why not just use the PRSI numbers and rebate each individual taxpayer the money.
Has the advantage that tax dodgers miss out! :stuck_out_tongue:

I’m happy with that.

PRSI numbers? No such thing. PPS numbers? Everyone has one.

ykwim. :wink:

:stuck_out_tongue: It’s mr_a I’m worried about.