{"id":33194,"date":"2020-04-22T04:51:46","date_gmt":"2020-04-22T04:51:46","guid":{"rendered":"http:\/\/www.goldco.com\/?p=33194"},"modified":"2022-12-28T05:38:53","modified_gmt":"2022-12-28T13:38:53","slug":"bank-of-england-move-means-were-entering-a-brave-new-world","status":"publish","type":"post","link":"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/","title":{"rendered":"Bank of England Move Means We\u2019re Entering a Brave New World"},"content":{"rendered":"<p>Along with George Orwell\u2019s <i>1984<\/i>, Aldous Huxley\u2019s dystopian novel <i>Brave New World<\/i> depicted the extent to which future governments would attempt to dominate society. But increasingly the warnings from Orwell\u2019s and Huxley\u2019s novels are not being heeded, and in fact many question whether the powers that be aren\u2019t using those books as an instruction manual instead. Perhaps most disturbingly, it\u2019s Orwell and Huxley\u2019s native UK that is leading the charge into the new reality.<\/p>\n<p>In response to the COVID-19 coronavirus crisis, the UK government is planning to spend hundreds of billions of pounds in stimulus measures. And in that effort it is now being aided and abetted by the Bank of England (BOE). In a move that has dangerous implications for the future, the BOE has vowed to finance the government\u2019s short-term borrowing. That means that, instead of having to go to bond markets for financing, the UK government will have its <a href=\"https:\/\/www.theguardian.com\/business\/2020\/apr\/09\/bank-of-england-to-finance-uk-government-covid-19-crisis-spending\" target=\"_blank\" rel=\"noopener noreferrer\">debt directly monetized by the BOE<\/a>.<\/p>\n<p>That trend towards direct monetization is a dangerous one for governments and central banks. The only reason people trust central banks to issue their currency is because they believe that there are limits to how much money the central banks will create, i.e. they believe that central banks won\u2019t create money ad infinitum. But if, as we\u2019ve seen in the US and now the UK, central banks agree to monetize billions or even trillions of dollars of new government debt, there are no longer any limits as to how much money central banks can create.<\/p>\n<p>While the BOE\u2019s latest move is being billed as short-term and temporary, that\u2019s a bit of wishful thinking. As the old saying goes, there\u2019s nothing as permanent as a temporary government program. Besides, once the COVID-19 crisis goes by the boards, there\u2019s still the reality of an economic recession that has to be dealt with, a recession that will be worsened by the worldwide lockdowns that have decimated economies. With the reality of recession looming, there\u2019s no doubt the UK government will attempt to take advantage of the BOE\u2019s largesse and continue its arrangement to monetize debt even further.<\/p>\n<p>Now that the BOE has succumbed to the temptation of outright debt monetization, will it be that long before the Federal Reserve does the same thing in the US? Can you as an investor trust that the Fed won\u2019t directly monetize debt and, more importantly, can your investments withstand such an eventuality?<\/p>\n<p>The risk of debt monetization, inflation, and even hyperinflation, is becoming more real by the day. Investors who don\u2019t protect their assets by <a href=\"https:\/\/goldco.com\/gold-ira\/\" target=\"_blank\" rel=\"noopener noreferrer\">investing in gold<\/a>, silver, or other hedges risk losing big once the effects of all this new debt creation make their way through the economy. Even when economies begin opening up again, they won\u2019t be opening up into a growth phase, they\u2019ll be opening up into a recession. Protect your retirement savings with gold and silver before it\u2019s too late.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Along with George Orwell\u2019s 1984, Aldous Huxley\u2019s dystopian novel Brave New World depicted the extent to which future governments would attempt to dominate society. But increasingly the warnings from Orwell\u2019s and Huxley\u2019s novels are not being heeded, and in fact many question whether the powers that be aren\u2019t using those books as an instruction manual [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":33196,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[212],"tags":[555,629,631,221],"class_list":["post-33194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-central-banks","tag-bank-of-england","tag-debt-monetization","tag-hyperinflation","tag-monetary-policy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.0 (Yoast SEO v25.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bank of England Move Means We\u2019re Entering a Brave New World &#8211; Goldco<\/title>\n<meta name=\"description\" content=\"The Bank of England made waves by agreeing to monetize the UK government&#039;s debt. If the Fed does the same in the US, here&#039;s what it means for investors.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bank of England Move Means We\u2019re Entering a Brave New World &#8211; Goldco\" \/>\n<meta property=\"og:description\" content=\"The Bank of England made waves by agreeing to monetize the UK government&#039;s debt. If the Fed does the same in the US, here&#039;s what it means for investors.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/\" \/>\n<meta property=\"og:site_name\" content=\"Goldco\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goldcopreciousmetals\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-22T04:51:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-28T13:38:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/BankofEngland855x570.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"855\" \/>\n\t<meta property=\"og:image:height\" content=\"570\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Paul-Martin Foss\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@GoldcoPM\" \/>\n<meta name=\"twitter:site\" content=\"@GoldcoPM\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Paul-Martin Foss\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/\"},\"author\":{\"name\":\"Paul-Martin Foss\",\"@id\":\"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada\"},\"headline\":\"Bank of England Move Means We\u2019re Entering a Brave New World\",\"datePublished\":\"2020-04-22T04:51:46+00:00\",\"dateModified\":\"2022-12-28T13:38:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/\"},\"wordCount\":534,\"publisher\":{\"@id\":\"https:\/\/goldco.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/BankofEngland855x570.jpg\",\"keywords\":[\"Bank of England\",\"debt monetization\",\"hyperinflation\",\"monetary policy\"],\"articleSection\":[\"Central Banks\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/\",\"url\":\"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/\",\"name\":\"Bank of England Move Means We\u2019re Entering a Brave New World &#8211; Goldco\",\"isPartOf\":{\"@id\":\"https:\/\/goldco.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/BankofEngland855x570.jpg\",\"datePublished\":\"2020-04-22T04:51:46+00:00\",\"dateModified\":\"2022-12-28T13:38:53+00:00\",\"description\":\"The Bank of England made waves by agreeing to monetize the UK government's debt. If the Fed does the same in the US, here's what it means for investors.\",\"breadcrumb\":{\"@id\":\"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/#primaryimage\",\"url\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/BankofEngland855x570.jpg\",\"contentUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/BankofEngland855x570.jpg\",\"width\":855,\"height\":570},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/goldco.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Bank of England Move Means We\u2019re Entering a Brave New World\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/goldco.com\/#website\",\"url\":\"https:\/\/goldco.com\/\",\"name\":\"Goldco\",\"description\":\"Top Rated Gold &amp; Silver IRA Company\",\"publisher\":{\"@id\":\"https:\/\/goldco.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/goldco.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/goldco.com\/#organization\",\"name\":\"Goldco Precious Metals\",\"url\":\"https:\/\/goldco.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldco.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png\",\"contentUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png\",\"width\":220,\"height\":101,\"caption\":\"Goldco Precious Metals\"},\"image\":{\"@id\":\"https:\/\/goldco.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/goldcopreciousmetals\",\"https:\/\/x.com\/GoldcoPM\",\"https:\/\/www.instagram.com\/goldcopm\",\"https:\/\/www.linkedin.com\/in\/goldcopreciousmetals\",\"https:\/\/www.pinterest.com\/goldco\/goldco-precious-metals-blog\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada\",\"name\":\"Paul-Martin Foss\",\"url\":\"https:\/\/goldco.com\/author\/paul-martin-foss\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Bank of England Move Means We\u2019re Entering a Brave New World &#8211; Goldco","description":"The Bank of England made waves by agreeing to monetize the UK government's debt. If the Fed does the same in the US, here's what it means for investors.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/","og_locale":"en_US","og_type":"article","og_title":"Bank of England Move Means We\u2019re Entering a Brave New World &#8211; Goldco","og_description":"The Bank of England made waves by agreeing to monetize the UK government's debt. If the Fed does the same in the US, here's what it means for investors.","og_url":"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/","og_site_name":"Goldco","article_publisher":"https:\/\/www.facebook.com\/goldcopreciousmetals","article_published_time":"2020-04-22T04:51:46+00:00","article_modified_time":"2022-12-28T13:38:53+00:00","og_image":[{"width":855,"height":570,"url":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/BankofEngland855x570.jpg","type":"image\/jpeg"}],"author":"Paul-Martin Foss","twitter_card":"summary_large_image","twitter_creator":"@GoldcoPM","twitter_site":"@GoldcoPM","twitter_misc":{"Written by":"Paul-Martin Foss","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/#article","isPartOf":{"@id":"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/"},"author":{"name":"Paul-Martin Foss","@id":"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada"},"headline":"Bank of England Move Means We\u2019re Entering a Brave New World","datePublished":"2020-04-22T04:51:46+00:00","dateModified":"2022-12-28T13:38:53+00:00","mainEntityOfPage":{"@id":"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/"},"wordCount":534,"publisher":{"@id":"https:\/\/goldco.com\/#organization"},"image":{"@id":"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/#primaryimage"},"thumbnailUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/BankofEngland855x570.jpg","keywords":["Bank of England","debt monetization","hyperinflation","monetary policy"],"articleSection":["Central Banks"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/","url":"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/","name":"Bank of England Move Means We\u2019re Entering a Brave New World &#8211; Goldco","isPartOf":{"@id":"https:\/\/goldco.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/#primaryimage"},"image":{"@id":"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/#primaryimage"},"thumbnailUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/BankofEngland855x570.jpg","datePublished":"2020-04-22T04:51:46+00:00","dateModified":"2022-12-28T13:38:53+00:00","description":"The Bank of England made waves by agreeing to monetize the UK government's debt. If the Fed does the same in the US, here's what it means for investors.","breadcrumb":{"@id":"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/#primaryimage","url":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/BankofEngland855x570.jpg","contentUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/BankofEngland855x570.jpg","width":855,"height":570},{"@type":"BreadcrumbList","@id":"https:\/\/goldco.com\/bank-of-england-move-means-were-entering-a-brave-new-world\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/goldco.com\/"},{"@type":"ListItem","position":2,"name":"Bank of England Move Means We\u2019re Entering a Brave New World"}]},{"@type":"WebSite","@id":"https:\/\/goldco.com\/#website","url":"https:\/\/goldco.com\/","name":"Goldco","description":"Top Rated Gold &amp; Silver IRA Company","publisher":{"@id":"https:\/\/goldco.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/goldco.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/goldco.com\/#organization","name":"Goldco Precious Metals","url":"https:\/\/goldco.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldco.com\/#\/schema\/logo\/image\/","url":"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png","contentUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png","width":220,"height":101,"caption":"Goldco Precious Metals"},"image":{"@id":"https:\/\/goldco.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/goldcopreciousmetals","https:\/\/x.com\/GoldcoPM","https:\/\/www.instagram.com\/goldcopm","https:\/\/www.linkedin.com\/in\/goldcopreciousmetals","https:\/\/www.pinterest.com\/goldco\/goldco-precious-metals-blog\/"]},{"@type":"Person","@id":"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada","name":"Paul-Martin Foss","url":"https:\/\/goldco.com\/author\/paul-martin-foss\/"}]}},"_links":{"self":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/posts\/33194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/comments?post=33194"}],"version-history":[{"count":0,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/posts\/33194\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/media\/33196"}],"wp:attachment":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/media?parent=33194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/categories?post=33194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/tags?post=33194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}