Thursday, Jun 04, 2009
Newly minted Bank of England cash is going abroad
FT Alphaville: Foreigners are stealing our quantitative easing
FT's take on yesterday's Daily Mail story. "Up to half of the fresh cash being minted by the Bank of England is flooding abroad, official figures suggested yesterday."
Foreigners are making use of QE to get rid of their UK Gilts.
This is confirmed by a drop in lending by UK banks; depressing chart for BoE.
"So inevitably, people will be asking whether QE is effective."
Posted by mountain goat @ 04:50 PM (632 views) Add Comment
2 Comments
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1. paul said...
Good lawd.
As if the wall of money from QE being thrown at mortgage lenders isn't big enough already when they can raise prices despite rising unemployment, low affordability and no first time buyers in sight.
The foreigners are saving us from our government and central bankers!
2. drewster said...
"The Bank of England itself thinks it could take six to nine months for the full effects of its unconventional policy measures to become clear"
How do they know it will take six to none months, if these are such unchartered waters? If it does take that long to see any effect, does that mean that by the time we see hyperinflation or currency collapse it will be too late to stop it? As usual the bank is just feeling its way in the dark.