Crashman Begins

Chinese dumping worthless currency for gold (17May10) :

http://www.bbc.co.uk/news/business-11123774 Central banks may face further tasks, says BoE's Bean Central banks may have to provide more economic support amid a fragile global recovery, the deputy governor of the Bank of England has warned. Charles Bean said policymakers had prevented a financial market collapse but further action might be required. He was speaking at the Economic Policy Symposium in Jackson Hole, Wyoming. At the same event, US Federal Reserve chief Ben Bernanke set out "unconventional" policy options to boost the US economy. The event, which attracts leading central bank figures, is this year focused on monetary policy lessons from the recent crisis. 'Emergency Use Only' Presenting a report to the conference, Mr Bean said that the Bank of England had been unable to prevent the crisis because its powers - primarily the setting of interest rates - were not powerful enough. He also hinted that there may be a need to increase so-called quantitative easing - the pumping of new money into the economy. "The deleveraging process is incomplete, the recovery remains fragile and a considerable margin of spare capacity is yet to be worked off, while further policy action may yet be necessary to keep the recovery on track," he said. But he added that "normal times will surely return in due course". Mr Bean also said that government purchase of securities - such as bonds and shares - was an effective way for central banks to ease financial conditions in a crisis. However, he insisted that adjustments to interest rates should be used in normal times, with asset purchases "best kept in the locker marked For Emergency Use Only," Bank reserves Later this year, the coalition government will unveil details of new powers for the Bank to try and head off any future crisis. And Mr Bean used his speech to set out examples how these could underpin "macro-prudential policy" under the Financial Regulations Bill. These included forcing banks to build up reserves in good times to help them weather downturns, and imposing restrictions on how much money mortgage lenders would provide. "With an additional objective of managing credit growth and asset prices in order to avoid financial instability, one really wants another instrument that acts more directly on the source of the problem," he said. "That is what macro-prudential policy is all about." Mr Bean's speech came after data showed that the UK economy grew by more than initially thought in the second quarter of 2010, boosted by a strong performance by the construction sector. The economy grew by 1.2% in the quarter, the Office for National Statistics (ONS) said, revising up its initial estimate of 1.1% growth. That was the fastest rate of quarterly expansion recorded since the first three months of 2001. But most economists do not expect this level of growth to continue. Meanwhile, the US Commerce Department revised down its growth estimate for the second quarter. It now says the US economy grew at an annual rate of 1.6%, down from its first estimate of 2.4%. Of the policy options set out by Mr Bernanke, top of the list is more quantitative easing.

http://economictimes.indiatimes.com/markets/bullion/Financial-storm-clouds-set-gold-on-course-for-history/articleshow/6441312.cms 27 Aug, 2010, 01.23AM IST,REUTERS Financial storm clouds set gold on course for history LONDON: An ill wind blowing through financial markets is breathing vigour into gold, which could mark record highs for the third time this year in September -- or sooner -- as fundamental and technical factors align. A spate of unimpressive economic data from the United States has raised expectations the world's biggest economy will keep interest rates low for an extended period, and may have to extend its quantitative easing programme to buoy growth. Meanwhile a fresh ratings downgrade of Ireland has shown worries over the euro zone's fiscal health are far from over. "Gold is at a fantastic point right now," said Ashok Shah, chief investment officer at London & Capital. "All kinds of indicators are showing that things are gradually slowing down." "That increases the prospect of more quantitative easing," he said. "In essence, that's great for gold." Gold has hit records twice already in 2010, scoring its current peak of $1,264.90 in June as the euro zone sovereign debt crisis sparked flights to safety. Investors worried that monetary loosening would ultimately prove inflationary. The inflation story has so far been treated with caution, as with the more immediate focus on deflation. But if economic growth stalls, that may change. "Should we see further deterioration and another round of significant stimulus, inflation will sneak closer to the front of investors' minds and that would be positive for the gold story," said RBS analyst Daniel Major. "Should we see a meltdown in economic data stimulating significant safe haven inflows and gold breaks above its recent highs we could see significant further gains," he added. The metal's latest swing higher after a retracement in June and July has improved its technical picture. Commerzbank analyst Axel Rudolph said gold's bounce off this week's low at $1,210 was positive, with $1,250 targeted before the June high. Barclays Capital projects $1,350 and higher later this year. Spot gold is currently near 8-week highs of $1,244 an ounce. Significantly, gold is also rising in non-dollar terms. Euro-priced gold, which hit an all-time high above 1,050 euros an ounce in June, rose back above 980 euros again this week for the first time since July 1. Sterling-priced gold has also risen back above 800 pounds an ounce. "It's really on the crosses where you want to see (gold) performing," said Simon Weeks, head of precious metals at the Bank of Nova Scotia. "I would definitely expect new highs." OPTIMISM EMERGES This rally has the benefit of coming at a time when more optimism is emerging about the jewellery market, which has come under heavy pressure in recent years from high prices. According to the World Gold Council, global jewellery demand in the first half of 2010 was 16 per cent higher than the same period of 2009 despite a 24 per cent rise in US dollar prices. "Jewellery consumers have become accustomed to the higher price," said the WGC's Eily Ong. Indian buying usually rises during the festive season, which began this week with Raksha Bandhan and runs until Dhanteras in November, the biggest gold-buying day in the festival calendar.

Got one too from H-S"B*C

Thank god I decided to live to the max whilst reducing debt on unnecessary's I kinda miss the boom times

" Money food to eata or money into property. Whats the priority ?"

What if Quantitive Easing kicks in again in a few months ? If prices do start to stabalise / rise again would you buy, or wait for another dip after 1 / 2 years ? or would you do something else ?

http://www.housepricecrash.co.uk/forum/index.php?showtopic=77546&hl=arab&st=0 A Cowboy And Arab Talk Frankly CGNAO Posted 22 May 2008 - 12:23 AM George Bush: "A lot of folks in America are upset over, you know, the high oil prices." King Abdullah: "Need I remind you your dollar is worthless? Have you brought me any more collateral?" GB: "Paulson said to tell you that IMF gold should have held you over for a while." KA: "400 tons? You already owed us that from previous years." GB: "We're having some, uh, difficulty obtaining more" KA: "Is your Fort Knox not full?" GB: "I'm told it's... encumberated, or something like that." KA: "What about your Catholic boy? Did you not invite him to Washington last month?" GB: " Uh, yeah, his Holiness, sir, but he wasn't very, uh, cooperatative." KA: "Did you remind him another church scandal wasn't in his best interest?" GB: " Yes I did, but he said the Vatican's gold was what saved their financial bacon in the first place". KA: "You are in a predicament. What other collateral can you offer?" GB: "My generals say there's new weapons in the pipeline- you know, really scary stuff. You can have first dibs". KA: "We're already up to our eyeballs in weapons, and half of them don't work anyway". GB: "Benny-Ben over at the Fed said there's some good deals on some banks he's getting ready to repo". KA: "That Citi deal didn't exactly work out you know. How do you Americans say- it was "a pig in a poke"?" GB: "I'm still working on a port leasing deal. It's politically, uh, still sensitive". KA: "Your endless wars against my people's nations are becoming tiresome, besides unprofitable. Who can say how much longer we can support your dollars?" GB: "(big gulp) I don't think Cheney's gonna like this. He made me come here anyway, I thought it looked, uh, too humblifying." KA: "Stay in touch. Maybe you'll find some gold in Jerusalem next week". GB: " I'm glad we had this frank exchange of, er, views. One decider to another".

The sheeple were already herded into speculation... and any that werent fell for the last bull trap

One enquiry, gotta keep tidying / making it presentable

Theres a reason for that Something to do with Gordon Brown

Its rare enough to hold value around the worl & cant be created out of thin air, unlike the money in your pocket / bank account. Whoever said money dosent grow on tress was lieing

Impending price crash & life change

I've decided to sell . I know I should have acted sooner. Will keep you all updated... wish me luck

And why do you think they've done that ? Where has all the UK / US gold gone ? It has something to do with... (cmon guys guess)

The shiny stuff is heading down for bit so some more deposit money is going in Good interest rate & good long term outlook

Ive got another 25 - 30 years before i get twitchy

What was that saying.. 1st they doubt you..

House prices will fall over next five years, says Niesr http://www.telegraph.co.uk/finance/economics/houseprices/7913776/House-prices-will-fall-over-next-five-years-says-Niesr.html House prices will fall in real terms over the next five years as inflation outstrips meagre rises in property values, one of the country’s most respected forecasting bodies has warned. The National Institute of Economic and Social Research (NIESR) claims that prices will fall, in real terms, by about eight per cent. It means that after accounting for inflation, “real” house prices will have collapsed to 2003 levels by 2015 The forecast will add to families’ woes as they face higher taxes and lower wages that even the Treasury predicts will grow more slowly than inflation for the next three years. Capital Economics has estimated that the average household will be £3,000 a year poorer under the measures introduced in last month’s Budget. NIESR’s figures show that although average house prices are expected to rise from £194,235 last year to £213,091 in 2015, they would need reach £231,000 to keep pace with inflation. As a result, average households will be £28,000 out of pocket. Simon Kirby, a NIESR research fellow, said: “While we have assumed the housing market remains stable, house prices could decline at a more rapid pace.” Families have already been hit by falling house prices. They crashed 19.3 per cent during the recession, according to Nationwide and have yet to recover to pre-crisis levels despite a 10 per cent bounce. Mr Kirby said that weak bank lending would restrain house price growth. NIESR’s housing outlook came as it warned that a double-dip recession is more likely following the coalition’s emergency Budget. The probability of a full year of negative economic growth has risen from 14 per cent to 19 per cent as a result of the extra £40bn of spending cuts and tax rises unveiled by the Chancellor last month, it said. “The Budget will inevitably reduce growth,” Mr Kirby said. “The major impact will be in 2011, when we believe it will shave off 0.4 percentage points of GDP [roughly £7.5bn].” It is forecasting slightly slower growth than the Treasury’s independent forecaster, the Office for Budget Responsibility, of 1.3pc growth this year, 1.7pc in 2012 and 2.2pc in 2013. However, Ray Barrell, senior research fellow, said the Chancellor’s plans were “necessary” to get a grip on the country’s £927bn of public debt: “I don’t think we could have grown our way out of this.” Although the economy is recovering, NIESR does not believe it will get back to pre-recession levels until 2012 – a period of decline matched only by the Great Depression of the 1930s and the recession of 1979-1983.

It looks like I wont be wanting to buy for the next 2 - 4 years... Willl buy when Dr Bubb says so

"The Central bank provides the money to the government (by printing), that the market does not want to lend." Printy printy. Is there anyone on this forum who still refuses to protect themselves ?

The estate agent didnt realise it was a Property Bee

Soounds like it. Every day = Cuts, Job losses, Cuts, lack of funding, Reducing, increased Tax, But beware of printy printy which can make things SEEM better, but in real terms could be a hell of a crash

Are you happy they have prolonged the crash ? Have you managed to save more, invest in other things, change career, etc ? Or has it worked out worse ?