Why quantitative easing is counterfeiting

Why quantitative easing is like counterfeiting

Just as it is not legitimate to write an IOU to yourself, it is not possible for any bank, business or person to legitimately create money for themselves to spend. Doing so would be counterfeiting. The Bank of England attempts to get around this by using an intermediary company called the Bank of England Asset Purchase Facility Fund Limited. The Bank of England uses its own company to buy bonds through the secondary market using IOUs from itself to itself, that is, using counterfeit money.

Money should be honest

Money is only really honest when it is created in a very specific way, and that is when it originates organically from people and businesses (including commercial banks) wanting to borrow and save honestly. If it isn't being created honestly, then it is effectively counterfeiting — no different to a member of the public printing their onw notes and going on a spending spree, even if the intention was to withdraw the notes in the future.

A company that has been set up with the sole purpose of debasing the currency and distorting the money supply is absolutely dishonest and should never be acceptable to the people.

Quantitative easing is not a swap

You may have heard that quantitative easing is a swap of gilts, or government bonds, for a reserve asset. This, again, is an attempt to mislead the public about the counterfeiting that is taking place. The Bank of England has nothing to swap. The £200 billion worth of gold reserves was all it had already backing the trillions of pounds of money supply prior to the counterfeiting program.

Counterfeiting is a crime.

Counterfeiting is not a victimless crime and someone always pays the price and that is the victim. In the case of the Bank of England's counterfeiting, the victim is the average UK earner and saver.

Spotting counterfeiting

In the days of digital ledger money it may be hard to spot counterfeiting, but quantitative easing amounts to modern-day counterfeiting. The Bank of England is allowed to do it because it not only benefits the UK government, it also benefits those close to the government, especially big corporations, market speculators and wealthy land and property owners.

Find out more about counterfeiting at the Bank of England