Treasury and Bank of England announce extension to Ways and Means ‘Overdraft’

Treasury and Bank of England announce extension to Ways and Means ‘Overdraft’

8:57 AM, 9th April 2020, About 3 years ago 2

Text Size

HM Treasury and the Bank of England have agreed to extend temporarily the use of the government’s long-established Ways and Means (W&M) facility. The W&M facility functions as the government’s overdraft account with the Bank of England, i.e. the facility which enables sterling cash advances from the Bank to the government.

The previous high for use of the W&M account was £19.9bn in 2008. Ordinarily a standing balance of around £0.4bn is maintained to support Exchequer cash management As of 8 April 2020, drawings under the W&M facility remain at £0.4bn, but the outstanding balance will be published weekly on the Bank’s website as and when government decide to draw on the facility

As a temporary measure, this will provide a short-term source of additional liquidity to the government if needed to smooth its cashflows and support the orderly functioning of markets, through the period of disruption from Covid-19.

The government will continue to use the markets as its primary source of financing, and its response to Covid-19 will be fully funded by additional borrowing through normal debt management operations. Any use of the W&M facility will be temporary and short-term.

As well as temporarily smoothing government cash flows, the W&M facility supports market function by minimising the immediate impact of raising additional funding in gilt and sterling money markets.

The W&M facility is the government’s pre-existing overdraft at the Bank. Any drawings will be repaid as soon as possible before the end of the year. HM Treasury, the Debt Management Office and the Bank will continue to cooperate closely to support the orderly functioning of the gilt and sterling money markets.

Share This Article


Question Everything

11:42 AM, 9th April 2020, About 3 years ago

Ok, so when you run out of cash to pay your credit cards, you start to take overdrafts to manage that risk of default. The difference here is that the BOE has "unlimited" cash, and so does not need to run a business like a normal bank.

This is just QE through another name, which is being played like a three card trick. The end result is that you always lose, or rather, you win the first one or two, so they can suck you in to lose everything you have in your pocket.

There is no such thing as "short term" with the current situation, look at how many trillions are being pumped into Wall St just now. Does this money need to be paid back? Yes, but not by Wall St.

So as above, the money does not need to be paid back by Our Benevolent Leaders, it gets paid back by us....... Who profits on this? Do we think the BOE is in on this for altruism sake? Do we think the Gov will foot the bill without charging it's "customers" as HMRC likes to call us now?

This is exactly what we are, we are customers (hosts) to a fantastic show of which we are told will be "short term" and the business services (parasites) of Gov and Above have rigged the show so that there is no way out and you are increasingly charged by the minute. But we feel good about it because we are told that we are kept here for our own good and "safety".

Regardless, the repayment will not be in actual money, no amount of generations could repay the debts being issued. It will be in your quality of life that repays, and that of your children's children's children, and that is a "cost" the Govs and Above are happy to pay for their security.

What is backing that debt issuance? What is the source that creates it? What do these institutions have or do that makes them have the resources to issue these debts? The answer is that they make the rules and have the might to enforce it. The abuse is that they say they do so in the manner that it is for our good.

Covid which is the excuse for this "overdraft" is the scape-goat for all manner of social and economic rigging. They have us all distracted with that "show" while they are fixing their plumbing to further drain us of our wealth and put stronger locks on the doors.

This economic collapse was due to happen regardless, they just have the perfect scenario to put the plans into action.

Get your cash outside the system ASAP, precious metals, Bitcoin, etc etc. Sure there are always risks, but the risk is increasingly becoming worth the reward. The more they inflate Fiat currency the more it will poor into scarce and fixed assets. Look at the move Gold made in the last year.

Yes, they can confiscate gold, they can outlaw Bitcoin, they can even "nationalise" your flats and houses.

Is there any synchronicity in S24 hitting full speed in 2020?
Did we not notice the infantile response by HMRC to their corrupt tax laws?
The double taxing it creates for HMRC?
Has anyone thought that it prepares this sector for making sure there are less repossessions when they pull the plug on the economy? Less evictions because of it? Therefore less strain on the banking sector and Gov?

We now have drones filming us in the streets and published on mainstream media, we have had some absurd notion we should clap BoJo because he has a runny nose. How much more totalitarian do we want to become? We are being laughed at and mocked, and feel privileged for the opportunity it seems.

russell branch

12:44 PM, 9th April 2020, About 3 years ago

Spot on with your analysis of the situation. It’s an engineered crisis and us ordinary folk are going to pay a heavy price materially and spiritually whilst the criminals get away with it as they did in 2008.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership


Don't have an account? Sign Up

Landlord Tax Planning Book Now