- A report from the House of Lords has criticized the Bank of England for being “addicted” to printing money
- The bank will own almost a trillion pounds worth of government and corporate bonds by the end of 2021
- Bank of England governor has frequently criticized Bitcoin, which has a fixed supply
The Bank of England has been criticised as being “addicted” to printing money, with a House of Lords committee warning that the bank was widening wealth inequality with constant quantitative easing and needs to prove it is working. By the end of 2021 the Bank of England will own £895 billion ($1.238 trillion) of government bonds and £20bn in corporate bonds but it has never opened up about how it plans to unwind the mammoth debt. The irony of the bank’s money printing bonanza, which has been in place since the 2008 financial crisis, is that its governor Andrew Bailey has constantly criticized Bitcoin, which, of course, has a fixed supply.
Money Printing Risks Inflation
Today’s criticism of the Bank of England’s money printing fixation came from a House of Lords report into the effectiveness of quantitative easing. The report found that the process has become so extreme that there is a threat of higher inflation damage being caused to the government’s finances.
The Bank of England embarked on a rapid money printing exercise in the wake of the 2008 financial crisis and hasn’t stopped since, escalating its activities in the wake of the coronavirus pandemic.
Bank of England Increasing Wealth Inequality
The report warns that impact of the creation of almost £900 billion worth of debt has been to increase wealth inequality in Britain by pushing up the price of assets, with the committee’s chairman, Michael Forsyth, stating that The Bank of England has become “addicted to quantitative easing” and warning that “It appears to be its answer to all the country’s economic problems…”.
The Bank of England has been embarking on this record money printing effort at the same time as governor Bailey has frequently criticized Bitcoin, stating that it is “not money” and “hasn’t caught on much”. Perhaps if you could print the sh*t out of it he might be more supportive of it.