Tuesday, 22 August 2017

Quantitative Easing vs Qualitative Easing.

Quantitative Easing vs Qualitative Easing.

There are presently three different so-called 'pump priming' monetary policy initiatives, that are confusingly being referred to by many as all being the same thing. But more accurately two of them favour the private banking sector over society, and one society over the banking sector.

1 - Printing bank credit reserves 1st example that favours banking sector over mainstreet;

Boosting bank credit reserves to replace what senior most owners and executives have stripped from the institution via remuneration packages with reported levels of profit justification that are creative accountancy, fraudulent counterfeit credit based cover-ups.

Creative accountancy fraud that leaves the institution itself insolvent and in need of assistance.

This does not work to pump prime the economy of course because no increased purchasing power reaches already debt saturated main street without it being via loans from the banks. Which when society is already debt saturated and been given no relief from the counterfeit credit already existing in the system, it is like pushing a piece of string.

2 - Printing bank credit reserves 2nd example that favours banking sector over main street;

Boosting banks credit reserves for them to purchase real assets from debt-encumbered companies or even countries. The benefit said to be by the bankers, injecting cash into cash-strapped sectors in an attempt to get the economy flowing again. They say they will sell the 'real assets' back to the market once the economy is flowing again.

Again given that there is no relief of the already existing levels of counterfeit credit based demands, and much of the cash changing hands comes straight back to the banks as payments, it is again like pushing a piece of string.

What it essentially does is allow the senior most vested interests to use counterfeit credit in a predatory way to gain ownership of the real assets of the society, so as they can then rent them back to society.

3 - Printing state institution mutual public credit reserves to be spent, rather than lent, into circulation that favours mainstreet over the senior most owners and executives of the banking sector;

Presently many societies of the world via contracts organised by their leaders, have entrusted institutions external of the state to administer the nation's currency originating 'pump priming' credit mechanism at the heart of their money system funding structures.

That, for a fee covering their cost of business and fair remuneration for their expertise of keeping everything in endgame loan repayment equilibrium, they will contractually administer the system in a fair way that will enhance the well-being of all of the society.

But many societies are starting to realise that the senior most owners and executives of these institutions external of the state have been committing grand-scale, predatory lending of counterfeit credit, control fraud.

They have been cooking the credit books in pursuit of short-sighted personal kings ransoms, rather than the long-term well-being of as many of society as possible.

The only way to now to fill the gap that has developed between the needs of mainstream and the lack of being able to access those needs due to interest payment demands upon a massive amount of already existing counterfeit credit, at least if society still wishes to retain a central currency, is by giving relief from those fraudulent claims by using another way to pump prime the economy in a way that bridges the poverty among plenty gap.

That way is via society, via their government, rescinding the contract of the institutions external of the state that has them at the top of the currency originating credit tree and occupying that space themselves.

Rather than first externally lending its purchasing power from external sources to then spend, it simply credits its own account with the value of its own credit, as is any nations sovereign right, then sets about doing what is necessary to give relief from the private banking sector counterfeit credit levels, by essentially doing the first two methods described above in this article, but to benefit society as a public trust and not institutions external of the state.

I would describe the 3rd of these processes as Qualitative Easing, rather than Quantitative Easing.