Monday, Jan 18, 2010
To print or not to print?
The Wall Street Journal: U.K. Tensions Rising Ahead of QE Pause
The Bank of England's £200 billion ($323.31 billion) quantitative-easing experiment is drawing close to an end, with less than £10 billion left in the coffers to spend on government bonds. Policy maker Andrew Sentance says the point is approaching where enough stimulus has been introduced, suggesting the central bank could call a halt to its gilt purchases at its next monetary policy meeting in February. That puts the U.K. in an unenviable position.
Of course, the Bank of England might yet decide to extend its purchases in February, seizing on any weakness in U.K. macroeconomic data to avoid taking such a contentious decision weeks before an election.
Posted by devo @ 04:43 PM (1407 views) Add Comment
11 Comments
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1. jack c said...
Investment week (11th Jan 2010) publication carried an interesting article on Quantitative Tightening (QT) titled Quantitative tightening: what will be its impact in 2010?
The full article can be found at www.investmentweek.co.uk/investment-week/feature/1584971/quantitative-tightening-impact-2010
2. mrflibble said...
Only £10bn left, just £150 for every man woman and child on the island... So far all 65 million of us have each thrown £3,000 into this QE pot, so what's another £150? Obviously we need to print more, three grand a piece just isn't enough...
3. mountain goat said...
As I have said here before the BoE is not "printing" since it is buying government debt with the QE money. Since I am still bearish on house prices and other debt generated in the credit boom I think "printing" will come though, but only after the next phase of toxic debt collapse.
4. matt_the_hat said...
Sorry mountain goat yes they are printing and giving it to people in the public sector to do nothing, case in point doctors out of hours.
5. hpwatcher said...
In my view, the economy cannot survive without QE and/or very low interest rates.
Draw your own conclusions!
6. fallingbuzzard said...
What you mean is that people can't have an easy life without QE or low interest rates
7. devo said...
6. fallingbuzzard said... What you mean is that people can't have an easy life without QE or low interest rates
red herring
8. devo said...
or perhaps you genuinely don't see why we have QE and low interest rates fallingbuzzard?
9. devo said...
allow me to explain
the only thing stopping the peasants revolting (I'm one) is the artificial and temporary normality supported by QE and low interest rates.
once those crutches are removed so are the blinkers
( they shoot horses don't they?)
10. Crunchy said...
They only know how to print money. It is why this website and broader sites exist. Not for too much longer now. No matter how well behaved they intend to be.
Take note HPC editors of my posts and indeed whole topics that have vanished in the past due to some bloggers exploring worldly possibilities or conclusions.
11. fallingbuzzard said...
possible