Too many F’s in CCFF

I was a bit critical of Positive Money (PoMo) earlier this week but this latest piece deserves much more attention for its welcome insights and conclusions.

There is in effect, a strangulated and arbitrary, rule based help for small and medium business (so called SME’s) while the big battalions get immediate and substantial help from the Bank of England’s Covid Corporate Financing Facility (CCFF) – yes there are certainly too many Fs in that for me too…

This means that so called ‘investment grade’ debt gets granted immediately, giving large companies an immediate advantage. The PoMo article indicates that £5.5 BILLION has already gone.

Naturally when the Bank buys

“The names of issuers and securities purchased or eligible will not be made public” and “We require companies that participate in the facility to sign a confidentiality agreement with the Bank.”

SME’s employ more people than anyone else in the UK economy but are somehow deemed less worthy – all because (it seems) the government thinks that it might ‘lose’ money. When, of course, it fails completely to realise that it, alone, creates it.

We are clearly not out of the misapprehension and deception woods yet.

Regrettably, in consequence, we will, I fear, be in no position easily to recover when this pandemic – both health and economic – recedes.