💸 Quantitative Easing (Prohibition)

Commons Chamber

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Rupert Lowe proposed a Bill to ban quantitative easing, arguing it allows governments to debase currency, a practice historically used by leaders to fund wars and overspending. He cited examples like Weimar Germany and Henry VIII’s England to illustrate the dangers of such policies, warning of moral and economic decline. Lowe highlighted recent global economic interventions, including responses to the 2008 financial crisis and the COVID-19 pandemic, as evidence of growing state inefficiency and debt. The Bill, supported by several MPs, was introduced for its first reading, aiming to prevent future economic mismanagement.

Summary

  • Purpose of the Bill: Rupert Lowe, MP for Great Yarmouth, introduced a Bill to prohibit quantitative easing (QE) and to prevent the government from indemnifying any losses from QE, asserting that it would ensure economic accountability to the public.

  • Historical Context: Lowe referenced historical examples of currency debasement, such as Henry VIII’s coin debasement in the 16th century, John Law’s scheme in France in the early 18th century, and the hyperinflation in Weimar Germany post-World War I, to illustrate the dangers of QE.

  • Critique of Modern Economic Policies: Lowe criticized the use of QE by modern policymakers and central banks, arguing that it leads to uncontrolled and unsustainable global growth driven by credit, and undermines true capitalism.

  • Recent Economic Interventions: He highlighted the financial bailouts and QE following the 2008 economic crisis and the significant government spending during the COVID-19 crisis, suggesting these actions have led to a bloated state and moral decline.

  • Global Examples: Lowe mentioned the economic reforms in Argentina under President Javier Milei, which aimed at cutting public sector spending and reducing inflation, and the proposed U.S. Department of Government Efficiency by Donald Trump, to be led by Elon Musk and Vivek Ramaswamy, focusing on reducing government waste.

  • Philosophical and Economic Principles: Lowe emphasized the importance of gold as a standard store of value and criticized the secretive nature of inflation through QE. He quoted historical figures like President Woodrow Wilson and economist Friedrich von Hayek to support his arguments against QE.

  • Legislative Action: The Bill was approved for its first reading and is set to be read a second time on January 24. The team preparing the Bill includes Rupert Lowe, Richard Tice, Jim Allister, James McMurdock, and Lee Anderson.

Divisiveness

The session involves a single speaker, Rupert Lowe, presenting a motion to prohibit quantitative easing. There is no visible disagreement expressed within the transcript; Lowe speaks at length about the rationale behind the Bill without interruption or opposition from other members of the House. The motion is put forward and agreed to without any recorded dissent or debate from other parliamentarians. The only interactions are procedural, involving the Speaker and Lowe clarifying the names of those who will present the Bill. The lack of opposition or disagreement during the session leads to the lowest rating for disagreement.