Sunday, Jul 05, 2009
Hot off the press
The Times: Bank of England injects £25bn more into economy
It appears that another £25bn will be committed but that might not be the end of the matter: “There was a widespread feeling among the members of the IEA’s shadow committee that QE was the only effective monetary policy instrument presently available to the authorities,” it said. “Several committee members believed that the present schedule of gilt purchases should be extended. Some members thought that an additional £100 billion to £150 billion of debt repurchases was required once the current package had run its course.”
Posted by quiet guy @ 11:14 AM (1000 views) Add Comment
9 Comments
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1. paul said...
Actually, Noshbag Smith is saying that the shadow MPC (IEA) advocates another £25bn.
The MPC has not said that it will do that, and those pesky inflation stats may well prevent it from extending QE further.
2. devo said...
Consider it done.
3. quiet guy said...
@paul
Yes, you are correct. I just took it as a given that they'll spend another £25bn.
"those pesky inflation stats may well prevent it from extending QE further."
Do you really believe that anybody is worried about inflation now? I suspect that inflation would be welcomed by many in the government and the MPC.
4. enuii said...
Pay squeezes, unemployment, cuts & inflation = 1970's re-run on acid.
5. charlie brooker said...
Twenty five billion here and twenty five billion there and soon you're talking big money.
6. devo said...
paul, quiet guy, I read it differently.
£125 billion spent
£25 billion more will be announced imminently = £150 billion spent.
The shadow MPC wants up to an EXTRA £150 billion to be spent, bringing the Big Brucie Bonus to an amazing (cue drum roll)...
£300 BILLION POUNDS!!!
7. uncle tom said...
So the BOE is printing freely, and the recession isn't going away.
So they have to keep printing until it does
- But what will happen first - recovery or runaway inflation caused by QE?
We have no green shoots because no seed has been sown, and we have a government that lacks the courage and skills to tackle the problem at hand. Worse is that we have an opposition that also looks painfully bereft of relevant talent.
We will not see recovery until the recession has accounted for the unsustainable element of the economy; and we are still a long way short of that.
Inflation, here we come..
8. devo said...
"- But what will happen first - recovery or runaway inflation caused by QE?"
Runaway inflation. Obvious to most, yet it's the policy they'll pursue.
9. jackas said...
Did anyone else see Merv at Wimbledon today?
He was sitting in the box behind Sampras. Just after Federer beat Sampras' record of grand slams Merv lent over and whispered into his ear. I wonder if he offered to create another grand slam out of thin air without Sampras having to earn it?
It wouldn't surprise me if he did. The thieving, fat, Benny Hill look-alike, four-eyed, thieving ****.