RE: Confirmed2 Oct 2019 14:18
Why did they need to offer to pay interest at 9.5% on their £300 million bond when the Fed's official interest rate is currently <2.0% and their balance sheet is over £3,000,000,000,000 (£3 Trillion)?
Does not make any sense unless the FED are lying about trying to support the economy.
Also why is MetroBank so small in a financial sense? The amount of money they are raising (£300 million) is less than one sixth of the net debt of a smallish oil company such as Premier Oil.
Raising £300 million is like managing to get a single peanut when the debts within the global financial system as a whole correspond to the whole of Scotland covered in peanuts to a depth of 3 metres.
Most debt will never be repaid. Look out for inflation or haircuts to your investments. Impossible to repay all debt with current policies of governments - ergo protests around the globe in Hong Kong, France, China etc. etc. Only way to repay all debt would be to finance cheap energy production such as increasing the mix of fossil fuels within the global energy supply and transportation networks. However, governments are saying they wish to do the opposite - to cut down the use of fossil fuels. I can't see how governments can pay off their debts unless they deflate these debts away or renege on a large portion of them. They have tried inflation and it hasn't really worked as the debts now are higher than in 2007. They have tried haircuts and it hasn't really worked because if you think of Greece as a test case the amount of money saved wasn't worth the social unrest it caused. So both options don't work - what do governments do next?
In case people think I'm in favour of continuing to use fossil fuels just for the sake of it that's not the case. But relying on windpower to generate all of society's electricity needs doesn't seem realistic. Even with solar it still doesn't seem realistic.
Where is the funding for technologies like using tidal power?
And even if by 2040 fossil fuels can be removed entirely from electricity generation there are still over six billion humans on the planet wanting to move around for social, leisure, work and domestic purposes.
It just doesn't seem realistic to me that the world economy can produce over 1 billion electric vehicles by 2040 when the current global output is a few million per year and a lot of these are either hybrids or cheap models made in China which lack range and comfort. At the current rate of electric vehicle production it would take about 500 years to produce a billion electric vehicles - and how many of those produced would need to have been replaced by then.
On the other hand technologies like hydrogen fuel cells for powering vehicles seem more within grasp if only they could get the funding.