Re: Let's ask bankers
There's no tangible asset behind any government debt. QE is just governent debt, which hasn't been sold to anyone yet. You unwind it, by selling that debt into the market.
QE was also used to buy corporate debt, but I think that was mostly in the US, and in short term bonds, so will get paid back quite quickly, as the Fed stops QE. That was basically identical to a central bank being a lender of last resort, but to other companies as well as banks. So it's reversible money printing, by design. In time, some of the government debt will probably get cancelled, but I'd imagine some will get sold to reduce market liquidity.
You need to remember that money isn't backed by assets either.
Bitcoins have no more "deflation", or perhaps more accurately "de-valuation" than any other currency
I'm not sure what you mean here. Bitcoin is deflationary, because there are a fixed number of coins. Thus as time goes by Bitcoins will buy more goods. That's the opposite to de-valuation, so it has less 'devaluation' than any other currency, not more, by design. This makes banking impossible. Because it costs more to repay a loan than the original loan was worth - as the value of each Bitcoin increases over time. Interest on loans is designed to protect the bank from inflation, plus to give them a profit. Without loans, you can't have investment. So you can't have a successful Bitcoin only economy.
In order to maintain the financial illusion that an economy is growing new money must be continually created
This is the wrong way round, mostly (I'm not a monetarist). Most money isn't notes and coins - which get printed. The money supply goes up when the economy is growing. Because the economy is growing. Money doesn't pool with the rich, because money keeps on circulating. Sure, some people hold on to physical notes and coins, but only a limited amount. Most people shove it in the bank, or invest on the stock market. The banks lend that money out, and the people who borrow it, spend it, and the people they spend it with bung it in the bank (or pay other people who do), and the banks then lend to different people. And the more people who are willing to borrow, the higher the money supply - but the banks aren't printing money, the money's just moving round. Because each time they lend, they have to have the money to lend with, which means someone's lent it to them.
Economics is weird. Money isn't what most people think it is. The job of banks is to recycle it into the economy. We're not on the gold standard anymore, so money doesn't just build up in rich peoples' safes.