What is the the problem with QE?

Twelve years ago quantitative easing was considered racial. It was called 'unconventional' monetary policy. Actually, it was government just using the power it has to create money at will, which had been pretty much denied until that time. Now QE has become conventional - there will be more than £400 billion of it done this financial year in the UK alone. But there are problems with it. As a result I am creating a mini-series on the issues that QE is giving rise to, how we can address them, and how this relates to modern monetary theory, which some would like to see replace QE. This is the first in that series, and focuses on the strengths, and weaknesses, of what is now conventional QE.
ABOUT RICHARD MURPHY
Richard Murphy is a chartered accountant. After training with what is now KPMG he established his a firm of accountants in London, of which he was subsequently senior partner, in parallel with a career as an entrepreneur and company director which lasted until his early 40s. He then moved to a career in campaigning and academia. He co-founded the Tax Justice Network in 2003, the Green New Deal in 2008, the Fair Tax Mark in 2013 and the Corporate Accountability Network in 2019. From 2015 to 2020 he was Professor of Practice in International Political Economy at City, University of London and is now Visiting Professor of Accounting at Sheffield University Management School. His best known book is ‘The Joy of Tax’.
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[@hungrydna]

From what you have said, then isn’t the core problem here the financial sector? Wouldn’t the solution be getting rid off Commercial Banks, the middle man in this case, so that the newly created money we got from taxation and other processes go back to central banks rather than private financial sector that they are going to speculate afterwards. Please, tell me if I am misinterpreting something here.

[@royburrows2470]

Very good video but I’m afraid for the general public to understand it as has to be simplified a lot more and with drawings

[@ernestjones1038]

How does the QE currency get used by the banks to pay bonuses?
I am asking this because I am under the impression that the QE currency just sits in the banking system doing nothing. And that the currency used to pay bonuses would have been paid whether QE was done or not. That QE did nothing hydrofoil here.

[@Rob-fx2dw]

It doesn't. His argument if true could well have been that deficit spending results in bank pay bonuses but he will never do that because he favous deficit spending.

[@ernestjones1038]

@@Rob-fx2dw
Bank bonuses are paid with bank deposits, not with QE created bank reserves.

[@Rob-fx2dw]

@@ernestjones1038 Yes. You are right. Banks are not allowed to pay for operating costs out of borrowed money because the money is owed to the lender.
They are also not allowed to create new loans to themsleves which if they did it would be an oxymoron since nobody can lend to themself.

[@Abdullah-london]

This is a very informative video. Thank you Richard!

[@tinaryan4023]

Yes - Asset inflation esp property