Where is all this bailout money coming from - discuss?

[SantaClaus]

Yes, we've been told its coming from the taxpayer.
But where are these trillions of dollars/pounds/euros coming from immediately. The taxpayer hasnt suddenly received a higher bill.
The govt. doesnt have this sort of money in reserves.
They cant borrow as no-one has the money.
Issue bonds maybe? Against what? Buckingham palace
So I guess they must be printing money

Dilution of currencies and hyper-inflation coming to this country very soon

Now where did I put my gold bullion.

[DimPrawn]

The banks money is just a number in a database in the bank.

So all that's happened is:

UPDATE account
SET balance = balance + 1000000000000



Simple. Bank now has loads of money again and we didn't give a penny of our money to them.

Boomed!

HTH

[BrianSnail]

Now where did I put my gold bullion.

Under the Christmas tree?

[expat]

Yes, we've been told its coming from the taxpayer.
But where are these trillions of dollars/pounds/euros coming from immediately. The taxpayer hasnt suddenly received a higher bill.
The govt. doesnt have this sort of money in reserves.
They cant borrow as no-one has the money.
Issue bonds maybe? Against what? Buckingham palace
So I guess they must be printing money

Dilution of currencies and hyper-inflation coming to this country very soon

Now where did I put my gold bullion.

It is not coming from the taxpayer, and anyone who told you that is misleading you.

In effect, IOUs are being issued, with the taxpayer as guarantor. It's a leveraged buyout. Especially sweet for Lloyds TSB, since the TSB was sold by the Thatcher government despite the fact that they didn't own it.

Edit: actually DP put it concisely above

[HairyArsedBloke]

Dilution of currencies and hyper-inflation coming to this country very soon

Yes.

[Viktor]

DimPrawn, this is one of the best and concise explanations about how gov bailouts are done.
Simple things are always hard to understand...

The banks money is just a number in a database in the bank.

So all that's happened is:

UPDATE account
SET balance = balance + 1000000000000



Simple. Bank now has loads of money again and we didn't give a penny of our money to them.

Boomed!

HTH

[Paddy]

Yes, we've been told its coming from the taxpayer.
But where are these trillions of dollars/pounds/euros coming from immediately.
So I guess they must be printing money

Dilution of currencies and hyper-inflation coming to this country very soon

Now where did I put my gold bullion.

Yes see my previous posts. It was also confirmed by an economist on R4.
Printing money is the only way out however, the government doesn't have tp print the whole amount. Only enough to pay cash to those who want it. The rest can be figures on paper.

It is the government that causes inflation not consumers.

[Cyberman]

It is not coming from the taxpayer, and anyone who told you that is misleading you.

In effect, IOUs are being issued, with the taxpayer as guarantor. It's a leveraged buyout. Especially sweet for Lloyds TSB, since the TSB was sold by the Thatcher government despite the fact that they didn't own it.

Edit: actually DP put it concisely above

Somebody else understands that all that was tulip re the Rock and each taxpayer being owed 1300 quid was just media propaganda ................. at last !!

[Viktor]

Yes but it's the taxpayer that guarantees the money. It's like the Gov saying: "if this does not work, we have the money coming from the taxpayer as a guarantee" - in the same way you go to the bank to get a loan on the basis that you have some rental income for ex.

So if the Gov f(*& up you will pay.

HTH

Somebody else understands that all that was tulip re the Rock and each taxpayer being owed 1300 quid was just media propaganda ................. at last !!

[SantaClaus]

thanks all! confirms what I previously thought.

We're Fu$%£d!!!