England Will Solve the Economic Crisis by Printing More Money!

In a radical and risky move, the Bank of England today decided to start printing money to combat the economic crisis, according to the London Times. While this might be good news to workers at the Treasury print shop, doesn't running of sheets of new cash traditionally send inflation soaring?

According to an article by the Times' economics editor, Gary Duncan, and Grainne Gilmore, the plan is "fraught with uncertainties and risks. Since the measures have been used only rarely in past decades, and the economy has since gone through sweeping changes, as well as recent upheavals, the Bank cannot be sure how much money it needs to create to make a difference."

The Bank has labeled the strategy “quantitative easing," and plans to pump £75 billion of newly created money into the economy over three months, according to the Times. "The ground-breaking step came as the Bank’s rate-setting Monetary Policy Committee also pushed interest rates to yet another historic low."

It's a little more complicated than just "printing money." According to the Times, the bank will actually begin buying—from commercial banks—a range of corporate bonds and Treasury gilt-edged stock or “gilts." The Bank will pay for these assets by creating new money, electronically, in "a modern-day version of running its printing presses."

The new cash paid to the banks for these assets will be credited to their Bank of England accounts. The idea is that banks will then make new loans to businesses and consumers backed by this increased funding.

The Times notes that "the Bank’s intervention in the markets will also be carefully designed to drive down commercial interest rates paid by consumers and borrowers, as well as by the government on official borrowing, delivering a further boost aimed at breathing life into the economy."

Should the U.S. take note of this new policy by England and follow suit, or is this a classic case of mismanagement triggered by financial panic? Email us reasons why it does or does not make sense to print money in a recession.

Ideology drives us apart. Neuroscience can bring us back together.

A guide to making difficult conversations possible—and peaceful—in an increasingly polarized nation.

  • How can we reach out to people on the other side of the divide? Get to know the other person as a human being before you get to know them as a set of tribal political beliefs, says Sarah Ruger. Don't launch straight into the difficult topics—connect on a more basic level first.
  • To bond, use icebreakers backed by neuroscience and psychology: Share a meal, watch some comedy, see awe-inspiring art, go on a tough hike together—sharing tribulation helps break down some of the mental barriers we have between us. Then, get down to talking, putting your humanity before your ideology.
  • The Charles Koch Foundation is committed to understanding what drives intolerance and the best ways to cure it. The foundation supports interdisciplinary research to overcome intolerance, new models for peaceful interactions, and experiments that can heal fractured communities. For more information, visit charleskochfoundation.org/courageous-collaborations.

How to split the USA into two countries: Red and Blue

Progressive America would be half as big, but twice as populated as its conservative twin.

Image: Dicken Schrader
Strange Maps
  • America's two political tribes have consolidated into 'red' and 'blue' nations, with seemingly irreconcilable differences.
  • Perhaps the best way to stop the infighting is to go for a divorce and give the two nations a country each
  • Based on the UN's partition plan for Israel/Palestine, this proposal provides territorial contiguity and sea access to both 'red' and 'blue' America
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Why a federal judge ordered White House to restore Jim Acosta's press badge

A federal judge ruled that the Trump administration likely violated the reporter's Fifth Amendment rights when it stripped his press credentials earlier this month.

WASHINGTON, DC - NOVEMBER 16: CNN chief White House correspondent Jim Acosta (R) returns to the White House with CNN Washington bureau chief Sam Feist after Federal judge Timothy J. Kelly ordered the White House to reinstate his press pass November 16, 2018 in Washington, DC. CNN has filed a lawsuit against the White House after Acosta's press pass was revoked after a dispute involving a news conference last week. (Photo by Alex Wong/Getty Images)
Politics & Current Affairs
  • Acosta will be allowed to return to the White House on Friday.
  • The judge described the ruling as narrow, and didn't rule one way or the other on violations of the First Amendment.
  • The case is still open, and the administration may choose to appeal the ruling.
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