A couple of posters have asked for a laymans explanation of QE and how it works.
No need to invent a wheel, the Bank of England have provided plenty of straightforward material:

Visualisation of the theory:
Bank of England | Education | Inflation | Quantitative Easing - How it Works

Simple explanation:
http://www.bankofengland.co.uk/monet...e-pamphlet.pdf

Detailed explanation:
http://www.bankofengland.co.uk/publi...n/qb110301.pdf

I prefer this simple little cartoon!!!

Quantitative Easing Explained - YouTube

Originally Posted by Lance_corp_more_rant

I prefer this simple little cartoon!!!

Quantitative Easing Explained - YouTube

It is a valid, if very biased perspective!

And who will explain the BOE that QE is really not a good solution?

Anything but a biased outlook regarding the history of the Fed demonstrates a distinct lack of perspective. Only the French Army has a worse record of realising its founding ambitions :-b

Originally Posted by Alsacien

It is a valid, if very biased perspective!

As are all perspectives! A liberal perspective is biased towards liberalist views, a Conservative perspective is biased towards a Conservative view.Etc Etc Etc!
Each person will view things differently dependant on their perspective!

Originally Posted by Lance_corp_more_rant

As are all perspectives! A liberal perspective is biased towards liberalist views, a Conservative perspective is biased towards a Conservative view.Etc Etc Etc!
Each person will view things differently dependant on their perspective!

I tend to judge them on whether they are able to offer a viable alternative, (one that would work in reality as well as theory, and would be applicable at the time). Hindsight and criticism are the easiest perspectives to hold.....

QE impact in UK is very hard to gauge, not having QE in the UK is somewhat easier and does not make for pleasant reading.
The only different approach being tried is the ECB's LTRO for 3 years, it will be interesting to see how this safer option works in comparison to QE

Originally Posted by Alsacien

It is a valid, if very biased perspective!

Like the fella says why don't they just call it printing money? Basically because too many idiots think that is always a bad thing even when faced with high debt levels in both public and private sectors.

Propping up a series of asset bubbles is perhaps closer to the reality of US and UK policies and that is a damned sight worse in the long term.

Originally Posted by Alsacien

I tend to judge them on whether they are able to offer a viable alternative, (one that would work in reality as well as theory, and would be applicable at the time). Hindsight and criticism are the easiest perspectives to hold.....

QE impact in UK is very hard to gauge, not having QE in the UK is somewhat easier and does not make for pleasant reading.
The only different approach being tried is the ECB's LTRO for 3 years, it will be interesting to see how this safer option works in comparison to QE

Didn't post it to criticise, just as an alternative viewpoint as this is a sticky!
My view is that no matter what the ECB or Governments do it is going to be a hard time for the average Joe!
If we are all honest these are deep and new waters for us all. Some have an understanding, some don't understand and seek advice, the majority don't care until it hits them like a wet kipper in the face!

Originally Posted by alib

Like the fella says why don't they just call it printing money? Basically because too many idiots think that is always a bad thing even when faced with high debt levels in both public and private sectors.

Propping up a series of asset bubbles is perhaps closer to the reality of US and UK policies and that is a damned sight worse in the long term.

Idiots eh? How very inflammatory. I don't think that QE is always a bad thing but it is a tool that should be used sparingly since it invariably has the effect of devaluing currency with obvious concomitant effects. The fact that one is wary of using QE doesn't automatically mean that one endorses asset value protection.

Two obvious areas for action are social welfare and foreign aid. These outputs are better addressed by hard pruning than currency devaluation as a result of QE.