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Dear John,
This morning the Bank of England announced it would directly fund government spending during the Covid-19 crisis. [1] This is a huge breakthrough for Positive Money and very welcome news for everyone during the current crisis.
By allowing the Treasury to spend without increasing public debt, the Bank of England has ensured the government will not struggle to fund its spending on coronavirus and simultaneously undermined any arguments for coronavirus austerity before they've even taken hold! For years politicians used high levels of public debt as an excuse to justify brutal spending cuts. Now that excuse is well and truly shattered.
Please John help spread this historic news today by sharing our latest blog post, it’ll just take a minute! |
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Our support for the Bank’s move was quoted in the Financial Times, Sky News, the Daily Mail, and many more, proving our message is really breaking through to the mainstream.
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The levels of public spending needed to fight coronavirus, support businesses and protect people’s livelihoods during this crisis are unprecedented in living memory. But this move by the Bank of England today thankfully confirms what we knew all along: the UK government doesn’t face any spending constraints in fighting Covid-19 – and it never did.
By simply extending the government’s overdraft (known as the Ways and Means facility which we first called attention to nearly seven years ago! [2]) the Bank of England has allowed the government to access new money without having to turn to private bond markets: the magic money tree was there all along. |
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Positive Money has been campaigning for public money creation for almost a decade. While we wish it were under better circumstances, the Bank’s announcement today is a positive sign that it’s finally embracing all powers at its disposal to help the UK public when we need it most: and that’s exactly what our money and banking system should do. Many thanks for all that you do, Hannah, Fran and the rest of the Positive Money team [1] Bank of England to directly finance extra government spending https://www.ft.com/content/664c575b-0f54-44e5-ab78-2fd30ef213cb [2] Sovereign Money: paving the way for a sustainable recovery https://positivemoney.org/wp-content/uploads/2013/11/Sovereign-Money-Final-Web.pdf |
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