Quantitative Easing = printing money

#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
Herrumph said:
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?
Frightening.

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

the_boy_syrup

LE
Book Reviewer
#3
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
 

the_boy_syrup

LE
Book Reviewer
#4
Sven said:
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?

BROWN, IN THE NAME OF GOD - GO!

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!
 
#8
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?
 
#9
Qualified as I am to speak, I'll let someone at the FT do it:

Easing will not bring collapse

Comparisons between the quantitative easing being adopted in the UK and US and the reckless printing of money that contributed to hyper-inflation in Zimbabwe are wildly overdone, says Julian Jessop at Capital Economics.

He notes that with Zimbabwe’s economy in free-fall, the Reserve Bank was obliged to finance public spending itself, largely by buying Treasury bills directly from the government. “The resultant surge in the money supply clearly contributed to hyper-inflation.”

But he is wary of drawing lessons for other countries.

“The inflation disaster in Zimbabwe is not just about recklessly printing money.

“It reflects a complete failure of normal economic, legal and social relations. The link between the central bank’s supply of money and overall inflation is also much weaker in a more advanced economy like the US or the UK.

“Finally, Zimbabwe’s collapse was driven by policies that destroyed productive potential – in contrast there is plenty of spare capacity elsewhere. The upshot is that other central banks would find it hard to create a large degree of inflation, even if they wanted to.”

Mr Jessop argues that the term ‘printing money’ is a misleading description of what is happening in the US or the UK.

“In practice, QE is being implemented by targeted central bank purchases of assets from the private sector – very different to what happened in Zimbabwe.”

http://www.ft.com/cms/s/0/f129f498-fdd9-11dd-932e-000077b07658.html
 
#10
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?
 
#12
Maccy_Bear said:
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?
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 ***********?
 
#13
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.
 
#14
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!
 
#15
In-Limbo said:
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.
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.
 
#16
Well if they've gone and done it, everyone now has the duty to spend like it's going out of fashion.

Savings for cnunts ;)
 
#17
jagman said:
In-Limbo said:
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.
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.
Cooked or not, it's still a margin they will work with, so go forth and buy stuff. Chuck a new car in your shopping basket along with your beans n beer, i'm off to go buy a new house now (they're going cheap!)
 
#18
Oh I forgot, payrises for mere mortals should also be higher this year and the next, sackings/layoffs should be postponed or cancelled in lieu of increased Agility. Anyone who can't pull that off is a cnut looking just to save. Manage upwards, do more on less, not more with less.

How to do more on less
 
#19
Quantitative Easing
Polite way for saying Here cum Maguabeconimics.
Could work in the hands of a responsible government, but anyone claim that El Gordo is leading such an establishment ?
No One will loan UK money. So money must be made for the system.
john
Cum Back Arold Wilson. What did he say on his devaluation ?
The pound in your pocket is now not worth any less than before
 
#20
jagman said:
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.
Hang on a minute. Cooked or not, the government's 'preferred' figure for inflation, CPI, stands at 3%.

That's higher than the 2% target set by Gordon when he was Chancellor. We have high inflation.

Introducing 'Quantitative easing' so that the government can buy its own worthless bonds obviously isn't happening because we're suffering from deflation.

Could it be that the government's printing money just to pay the bills? Surely not. Stand by for legislation that enables MPs to be paid in dollars. Or Euros. Or Argentinian Pesos - just one of many currencies that are in better shape than the pound.
 

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