Yesterday, August 23, the BBC published a report titled, Bank of England defends QE but admits rich benefit most. In the British version of “Quantitative Easing,” the report says that since March 2009, the Bank of England has purchased “£375bn of government bonds, known as gilts.” Of course, like every other central bank, the BoE has no money with which to buy the bonds, it simply creates it, thus injecting counterfeit money into the economy under color of law.
According to the BBC story, “The policy of QE means that the Bank [of England] now holds more than a third of all government bonds in issue.” That means the BoE has created massive amounts of counterfeit British pounds. But that is just the beginning. Commercial banks create more counterfeit money as they buy more government bonds under the fractional reserve banking system. Ordinary people end up paying the cost.
See my previous posts on QE.–t.h.g.