Quantitative Easing = printing money

Discussion in 'Current Affairs, News and Analysis' started by Herrumph, Feb 18, 2009.

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  1. It is now official and the Bank of England has asked the government for permission to use quantitative easing to boost the economy. That's printing more money to you and me, effectively de-valueing the pound to all but name.

    Even the experts believe it is a very high risk move which is difficult to control once started. The very idea is considered to be lunacy and has been seen in other countries as an act of desperation. It is supposedly better than good old fashioned printing more money because it is backed up by bonds and other securities - most of which are considered as being worthless or nominal in current climate.

    Is this the final throw of the dice by an increasingly desperate government?
  2. Frightening.

    Unfortunately I'm unable to uncover anything on google - can you help? It wasn't mentioned on the Beeb News at 6 either.
  3. the_boy_syrup

    the_boy_syrup LE Book Reviewer

    Do you not believe that Gordon Brown, the Labour goverment and the heads of various banks aren't the men to tell us how to solve a financial crises that those silly Americans made

    What could possibly go wrong
  4. the_boy_syrup

    the_boy_syrup LE Book Reviewer

    Unfortunately I'm unable to uncover anything on google - can you help? It wasn't mentioned on the Beeb News at 6 either.[/quote]

    It was rolling across Sky news this morning
  5. Sheer unadulterated lunacy! Think Mugabe!

    BBC won't mention ANYTHING against 'Bottler' Brown, so no point even listening. All part of the 'scorched earth' policy.

    A better bet would be to cut back the 'lager & fags' allowance paid to the work-shy, and savage the number of the Brown invented non-jobs 'administrating' his ill thought out, irrelevant 'rules'. All located in Labour constituencies by sheer coincidence!

    Is there no mechanism to prevent a deranged government from fatally wounding an economy?


    PS. I pray that whichever administration eventually takes over from this failed, dishonest and wholly disreputable gang of charlatans, goes through the BBC like a dose of the proverbial, and clears out the Marxists, the 'luvvies' and the other highly paid, so-called 'politically correct' rubbish growing comfy on my licence fee!
  6. BBC has it that the BOE are seeking approval for it. BBC News website has a story on it
  7. So if the banks(which we own, nearly) can print money, does that mean can too?

    Might as well because if we're that fcuked then who's going to question it?
  8. Qualified as I am to speak, I'll let someone at the FT do it:

  9. The last, desperate act of a failing government. A couple of historical examples spring to mind, gentlemen.

    Could the Emperor Mong have the ear of the PM?
  10. So can we know procure all the army/navy & RAF capital projects that were previously on hold or not fundable now that we can invent the money out of thin air ? Sounds like a plan
  11. Have the ear of the PM?
    Only if he has taken an earthly body in the form of Peter Mandleson
    I wonder if the Emporer likes taking it ***********?
  12. So let me see if i've got this correct. Inflation falls a margin meaning the Bank of England has room to create M0 (i.e. More cash for them and Banks) which ultimately will turn into M4 (liquidity for everyone else), the Banks collective arrses unclench a little and loans and mortages start flowing a bit more freely again (increased velocity), the banks therefore make more money over the long term, so at the opportune moment the Bank of England reduce M0 taking surplus cash out of circulation and clawing back some of the bad balance sheets banks created through their mismanagement?

    Provided they don't overdo it, it is still a viable mechanism of recovery.

    The reason why Zimbabwe can't pull it off is because Mugabe is a cnut and they're nearly at full unemployment.

    Blighty shouldn't worry too much, we can but trust.
  13. They, the BBC, have finally been given permission by 'Stalin' Brown to announce that The Bank of Brown, formerly The Bank of England, formerly an independent organisation founded in 1694, to print more money.

    This will make the shaven-headed, lager-swilling, pot-bellied, un-washed, semi-literate, Majorca-going, drug taking, criminally-inclined, benefit 'poncing', black-market working, majority of the population in the blighted Bliar/Brown Britain very happy - more lager tokens, more drug tokens and more fag tokens.

    The greatest sadness is that the fearsome oaf Brown thinks the filth described above will vote for him!
  14. But for the fact that the inflation figures are cooked yes.
    As the figures bear little resemblance to reality its a recipe for disaster.
    Things that us mere mortals spend out money on like food are not suffering from deflation, just like they weren't counted in the inflation figures in the 1st place.