Monday, Aug 10, 2009
How to increase public & national debt with no benefit to UK economy
BBC: What RBS's results say about QE
If you want to know why quantitative easing may not be working - in the sense that it hasn't led to a conspicuous increase in lending - this morning's financial results from Royal Bank of Scotland give a pretty good clue.
Posted by hpwatcher @ 12:23 PM (648 views) Add Comment
3 Comments
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1. quiet guy said...
What would have happened to the gilts market without QE? The implication seems to be that there would be less gilts bought with QE funny money hence the price of debt would have risen. QE may have bought the government some time but it has also allowed important and painful budget decisions to be postponed so we will be in an even worse mess when we start trying to balance our budget again. Savers beware! You need some way to protect yourselves.
2. vacuouspolitician said...
"Savers beware! You need some way to protect yourselves."
...any ideas...?
3. alan said...
At the moment, we are buying back gilts from investors. So, how keen will the investors be to buy up UK gilts once QE stops?
Will the UK have to jack up interest rates to maintain their appetite? Its a question for the new Conservative administration...what a mess to sort out!
Surely Gordo can't last another 6 months?