The Bank of England's Monetary Policy Committee today confirmed that they would, as reported, print more money to 'inject into the economy'. The reports were that £50 billion of 'new money' would come into the system, but it will actually be £75 billion. £75 billion 'new' pounds created from thin air.

I found this explanatory video from the Bank of England themselves which purports to show how QE works. Before even watching it, on the popular video-sharing site it is hosted on, I noticed that comments had been disabled. Watching it, it soon became clear why. Here is the video:

For a start, the 2 percent inflation target they mention is further away than ever; it is currently 5 percent. Now I do not claim to be an economics expert, but a child can see that to print a stack of new banknotes (£75 billion in this case, remember) merely devalues the money already in circulation. The video claims that there is "not enough" money in circulation - which begs the question: what is that money backed by? If you think it's gold or silver - it isn't. The pound hasn't been on the gold standard since 1931. You cannot create gold or silver out of thin air, therefore you cannot print more money if it is backed by a finite amount of precious metal.

The pound, like most currencies, is a 'fiat currency'. That means it only has any value at all because the government says so. But what about the promise on the notes? It says and I quote:

"I promise to pay the bearer on demand the sum of - pounds", and it is signed by the Bank's chief cashier. That once meant that you could go and exchange your note for the banknote's value in sterling silver, but try that today and the chances are you would simply get another banknote.

A banknote is merely an IOU, and the law as it stands says you cannot pay a debt with another debt. However, because the government says that the note itself is legal tender, they get around this rather niggling inconvenience. That's why they can print all the banknotes they want, but if you or I decided to try that we'd be carted off to jail before you can say "economic collapse".

Therefore all banknotes are debt notes; what you think is your money is just debt.

So, when the Bank of England announces it is "injecting £75 billion into the economy", it has just saddled the whole country with another load of debt.

Slowly but surely, people are starting to wake up to what is a coming global crash. When I first attended a very eye-opening conference two years ago, that was when I first woke up to what was going on myself. The main question asked of attendees there was simply this: you can choose to be either financially educated or uneducated. The vast majority are uneducated; they have been deliberately kept in the dark about the dire situation, or their attention is diverted by television, celebrities, showbiz or even sport.

The point that was stressed to us was as follows: if you do not take action you have still made a choice - a choice not to be educated. When the crash comes I intend to be financially educated - what about you?

There is a Conspiracy Against Your Money - please click the link to access a vitally important documentary.

News reports are suggesting that the Bank of England is set to print more money in an attempt to boost the weak British economy. The process, known as quantitative easing, means that the central bank (in this case the Bank of England) buys up bonds from other banks in order to help finance those banks and improve their lending. Where does the Bank of England actually get this money from? They create it out of thin air!

Yes, they actually print money and put that into the banking system, and anyone with even a basic grasp of finances knows that the more money that is out there, the less it is worth.

In Douglas Adams's 'Hitch Hiker's Guide To The Galaxy', a prehistoric Earth is colonised by settlers from another planet; those deemed the least useful to their home planet's society. Once on Earth, they hold meetings and one policy decision is to adopt the leaf as their currency. Of course this policy is shown to be flawed somewhat, when one settler points out that the ready availability of leaves means it would now take "three major deciduous forests to purchase one ship's peanut".

We're told that this policy is essential in order to stave off economic collapse, but at what cost? Will we all need a forest to buy a peanut? At this rate, quite possibly.

The following cartoon which I found on youtube explains quantitative easing (from a US viewpoint; it mentions the Fed, but the basic principle applies regardless of the nation) and illustrates what a flawed idea it is (some strong language!)

When you consider that this money, created out of thin air remember, is loaned out and interest is charged on it, you see what a swindle the whole thing is.  More about the Conspiracy Against Your Money is explained on the DVD which you can get from my site; click the link to find out more.