1. Q E II is not Queen Elizabeth the Second. It is a term invented in the West to describe printing money to pay debts or to revive the economy. It stands for Quantitative Easing No 2.
2. It is a great way to make money to replace the money that a nation has lost in a recession caused by abuses of the financial system. You just print more money.
3. Actually I don’t think they actually print currency notes amounting to the hundreds of billions of dollars or pounds to replace the money they have lost. The amount of printed currency notes would be huge and be very difficult to transport to the banks which has lost the money. There would be a stream of armoured cars from the mints to the banks.
4. I suspect what they do is to issue cheques in favour of the banks. The amount would be entered in the books of the banks.
5. If the banks need to pay or to lend money, again cheques would be issued or the amount credited to the person or entity in the books of the banks.
6. Should the persons or entities wish to pay for anything, again they would issue cheques. The amount in the cheques would be credited to the accounts of the persons or entities who would than be entitled to issue cheques in payment for whatever.
7. At no time will anyone get or be paid in cash. So what need is there to print money in the form of currency notes. Any time these countries lose money, all they need to do is to issue cheques to whatever amount they need.
8. However this Q E is a privilege for the rich nations only. When Greece lost money, it cannot print currency notes or issue cheques to pay debts. Greece needs to borrow money from European countries to repay loans. Again no currency notes would be involved. The amount lent would be credited to the Central Bank of Greece which then would issue cheques to the commercial banks.
9. We hear that banks like Goldman Sachs have recovered and are able to pay back the loans given them by the Federal Reserve Bank. The quick recovery is through borrowing the Q E money from the Fed at no interest or minimal interest and then buying Government bonds. Buying Government bonds is actually lending money to the Government. The Government has to pay interest on the money borrowed, which gives Goldman Sachs a good return. Hence the quick return to profitability of Goldman Sachs.
10. I am not a financial or monetary expert but I would like to hear the experts say that what I describe here is not happening.
11. The world is being taken for a ride by the great western countries and their systems for everything. It is a case of doing as I tell you and not doing as I do. Rightly both the United States and United Kingdom should be bankrupt. To recover they should be selling all their banks, industries and other assets at fire-sale prices. That was what the Asian countries were forced to do after the currency traders forced many of them almost into bankruptcy. But the bankrupt powerful countries of the West don’t have to do that. They carry out Quantitative Easing, print money (issue cheques) and refinance their banks and bankrupt industries. And they talk about transparency in business practice.
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