This week the Government commenced 'operation helicopter', its three-month, £75bn plan, by having the Bank of England buy £2bn of government bonds using money it printed specially for the purpose.
As the the Governor of the Bank of England, Mervyn King, wrote in his 17th February letter to the Chancellor: “The Bank of England remains committed to improving liquidity in credit markets that are currently not functioning normally.”
Printing ‘central bank money’ is apparently the way to do this – don’t worry that the Bank has never tried quantitative Easing before in its 315 year history – there are some very clever people working at the Treasury and the Bank. Not having sufficient savings is no longer an inhibition in the light of the Bank’s greater priority of increasing velocity.
So here is my idea of how I can contribute to the 'war on illiquidity'. I have my own 'domestic quantitative easing monetary base expander' which I can use. More commonly known as a ‘counterfeiting machine’. Why can’t I contribute to expanding the money supply? Why not just let me print £2,500 myself, and start spending?