Where will all the money come from?

[Fedupandpoor]

Where will all the money to support businesses and buy beds and respirators come from? Is there a disaster fund that the government can draw from or will it be loaned from the Bank of England?

I think they must have a back up fund for life or death situations that they can use.

'Gilts are government debt instruments. They will borrow money from wealthy individuals and countries and this will have to be paid back later. They can also just ‘print’ more money but this affects inflation adversely.'
This is what pisses me off. We ARE a wealthy country aren't we? Even if it's personal wealth, now is time for some redistribution of that wealth.
The few billionaires who hold so much of the world's wealth need to be digging deep right now, to avoid another worldwide recession.

But they do actually print extra money in this country and are doing this as a response to Corona , so how do we expect to get away with it? Surely if the govt are doing it someone thinks it is a good idea?

www.cityam.com/bank-of-england-slashes-rates-and-launches-200bn-of-qe-amid-coronavirus/

Surely if the govt are doing it someone thinks it is a good idea?

What’s the alternative? It’s what there is.

Wealthy individuals will include pension funds etc. Gilts are considered a safe investment and the government issues them on an ongoing basis. It’s what we’ve spent the last 10 years of austerity trying to reduce - government debt from spending more than we have.

Well if it will lead to hyperinflation it's not a good idea!

The problem is that there's no alternative - we are forced into a 'buy now, pay later' situation. One could argue forever about things successive governments could have done in the past that would have placed us in a stronger position, but that's futile. We should all be looking at our own financial positions, present and future, so that those of us who are able can support the economy in a return to normality when the time comes, however slow that return might be.

This is our war. The soldiers are health workers.
Society was fundamentally changed by ww2 and so will current society. We don't know what that will look like yet.

We paid ww2 debt back for decades. This will be the same.

Someone explained to me that the more money we make. The less it's valued

Thank you everyone who explained it!

It’s what we’ve spent the last 10 years of austerity trying to reduce - government debt from spending more than we have.
That's not true though is it? the last 10 years have been about removing money from the taxpayer / government and giving it to private individuals, e.g. privatising prisons, care, school, NHS, welfare, the list goes on.. so taxpayers money's (our money) goes to profits for private companies, not back into running the country economically for the people. That's what austerity was all about, moving money that we earn, into private hands. The result is the UK is now a shithole, zero hours contracts/ gig economy / least hospital beds in Europe, and hence these private companies owe us big time. Can't they give it back instead of giving the people more debt?

Well we could start with asking Richard Branson to cover the 8 weeks unpaid leave he expects Virgin Atlantic staff to take, from his own rather deep pocket.

Taxes

Following this up with "austerity" measures would kill off the economy. It needs investment, good public services and infrastructure, and a safe and healthy population in order to grow. Cuts strangle it, an economy isn't the same as a household budget at all.

The government will pay for this by printing money. That’s a somewhat outdated term, however, as they don’t actually print the money these days. They do this instead :

en.m.wikipedia.org/wiki/Quantitative_easing

The Bank of England did £200bn of QE last week, and there will be much more where that came from.

Increase in takings from inheritance tax. Excess deaths - huge increase.

Oh yes, forgot about the deaths. Aha, knew that Rishi had something up his sleeve. Maybe this explains why they've been so slow to enact the lockdown. They need enough people to die to pay for all those who can't work.

Quantities easing ie print more money, which means what you can buy with your money falls. Inflation

Increased taxation and future cuts - although probably not until the recession this will cause has eased.

Increased debt. My grand children will be paying this back in increased taxes.

This is no magic money tree. This is the country reacting to an emergency. There is no choice.

Once this is over & we all come out of lockdown, we will all be spending more money, the money we haven't spent whilst stuck at home, which will mean more VAT will be collected, people will be rebooking holidays & travel arrangements, which will all boost the economy. I should imagine it will be like when rationing ended after the war, there was a big boom because there was more in the shops to spend money on, less restrictions.

I read on Quora that the reason QE didn't cause hyperinflation is

a) Most of the money didn't actually reach the real economy, it was just issued to banks so they could lend it out if people wanted to take on debt
b) The economy was in a state of deflation - people were putting off buying things thinking they would get cheaper later, there was unemployment and less consumption. So it got us out of deflation but wasn't near enough for hyperinflation.

Hyperinflation also happens when people have no trust in the government and investors don't believe the government can pay their debt.

I'm thoroughly confused though.....I keep hearing about house prices crashing (which means keeping my savings as cash for now = good). But then all this money printing could cause inflation, which means debt/housing=good because your debt just becomes very cheap.

Not a bloody clue if my money is safer as money or housing.

Once this is over & we all come out of lockdown, we will all be spending more money, the money we haven't spent whilst stuck at home, which will mean more VAT will be collected, people will be rebooking holidays & travel arrangements, which will all boost the economy.

See, it will be both ways.

The young people on good salaries in "safe" industries, who spend all their money on drinking/takeaways/expensive gyms normally (basically all my friends), will save loads of money this is over. I mean I have one friend who spends £400 a month just on drinking in bars, and another who pays £100 a month for the gym. They'll definitely have a blowout for months afterwards.

But then a huge, huge number of people will be unemployed and living off UC. A lot of people will have had their businesses wiped out. Bit companies will go bust. So we'll have a huge downturn.

*big companies