Panda

Nonsense.....you know it... Its no different to debt/Gilt issuence, just a different buyer at the end............... True.....But hey if you hold Sterling, your problem, it could be worse; if you are/were paid in Sterling, the same is happening to your salary and wages, that is happening to your pile of cash.......So if you are lucky enough to have a pile of cash, tough luck, the poor sod working 70 hours a week while his income is suffering the same effect and fate as your savings, or the pensioner seeing their pension suffering the same fate as you describe above......At least you are not suffering by your toil currently.......... .

Why the need to reverse..........BoE just hold till maturity, then the coupon price paid by the DMO...............The Tripartite shuffle, the BoE, the DMO, the Gubbermint.....Acountancy tricks.....But hey Merv tell the truth.....

Only newly printed money is created when debt is written off, this will never happen in the UK.... we are all debt slaves either through taxation or inflation.....

Gilt issuence and QE is no different,,,,,,,,,Just the buyer is the Pru or the BoE................Still money printing, debt issuence, goverment debt is currency devaluation, its been going on for decades..................Do your research, do not believe what you are told.................

New money = New debt................. Increased new money = New debt held on the BoE balance sheet...... How can this add to NEWLY PRINTED MONEY, its the same as NEWLY ISSUED GOVERMENT DEBT, as always.....Just held by the BoE, not some pension fund.....

Do not believe what you are told by the useless media, do your research.....QE money still exists on the BoE balance sheet.....as UK debt, If they really wanted to print to the real economy or the banks they could do this via a £20k tax personal allowance expansion, not via back door accountancy tricks....Do not question when you have not numbers to back up your reasoning.............The numbers are real, do your research..........

You need to do some research, accountancy research, you are incorrect.................I am no banker, but believe not what you are told.......

UK and US QE is totally different, you know that though.......The link describes the US QE............Not the UK QE...

The QE money is sitting on the BoE balance sheet as new UK government debt, it's going nowhere, the goverment debt is still real, the deficit is still real, the debt is still increasing... but held by the BoE, not in the market place, there is no freshly printed cash out there in our economy, or on the banks balance sheets, if there was, if we really had 325 billion pounds injected into the real economy and lent out, inflation would not be circa 5% to 10% it would be a lot higher, does no one under stand what QE is actually achieving? It's just a tool to control interest rates on goverment debt, by market manipulation, so controlling Gilt issuence.......Purchasing and issueing with a slight hand.....

The only "Pumping" we have seen really..... is by lowering rates of interest on public debt through ZIRP and with the help of QE, it has basically allowed the gubbermint to pay less interest on Gilts issued to the market, but also allowed the private indebted more disposable income to spend in the real economy by paying less interest on private debt held.......The real fun starts when we start to see real wage inflation, but that could be ten years away.......A zombie economy? QE is an accounting trick, the debt is still real but the BoE now has 325 billion of public debt on its balance sheet which would otherwise be on someone elses balance sheet. The newly printed 325 billion was swapped for these already issued Gilts on the saecondary market, which will probably be used to buy newly issued Gilts at a higher price with a lower yield.

It's gone nowhere, its sitting on the BoE balance sheet, as Gilts purchased. The 325 Billion is not in the real economy, swirling around paying for goods and services,it is not sitting on the bad banks balance sheets, helping propping them up, no. What is has done is, its bought down some private borrowing costs, but more importantly the Gubbermint borrowing costs, and tansferred income from savers, workers, pensioners........ to debtors, both state funded do f00kall's, so SOME state workers, all state non funded workers.......

Aye sums it all up..................Issue UK debt, pension fund's et al............. buys UK debt and sells the already held UK debt back to the UK issuer.....The UK issuer holds an ever increasing mountain of UK debt, so controls the rate of interest payable on that debt by controlling the debt cost's...... so by manipulating or buying up all the issued debt......a self perpitulating process hey......., you just don't wanna be investing in a product which holds UK debt, like a days work, an hours pay, a pension fund, a savings account, the Great British Peso, we are being robbed by Merv the Highwayman....Well bent over and f00ked......

Correct... QE is just a mechanism to lower long/short term goverment borrowing rates, in essence swapping the term maturities, so the goverment can borrow as if it is a Company which can borrow without servicing a ballooning deficit...So no risk of defaulting, well how can they while they can buy there own debt issuence, hold it till maturity, and issue more knowing they can buy it back hold it, so manipulating the rate of interest paid by the Gubbermint.....Can Kicking at its best, but the media do not understand QE, they believe what they are told, that we are printing money and giving it to the banks/economy, are we f00k..... We are seeing cost inflation due to the British Peso heading down, so driving up import costs, speculation in commodities, and the greed of Corporations increasing their cost base to maintain profits......

Been to a barbie today.....first one, plenty of real Ozzies, the enviroment is a changing over here, they have woken up....The Gold Coast is crashing, no jobs, high crime, peak prices are 40% down.....Here in Brisbane, prices are NOT going any higher, unemployment is picking up, job security an issue....The average Ozzy guy knows when well now as China slows, maybe falls, so will Oz. The general concensus is, "Its coming to Oz, the good times are over" you can smell it in the air, its 2008 here in Oz, god help the over leveraged......... Two things, the housing bubble here is crazy, but it is slowly popping, my mate, a Pom, bought in 2006 for $1.45 million, his next door neighbour, same size plot, just sold for $900k...............So its down, spoke to my real estate agent last week, who i rent off....She is 29, her and hubby own five properties, circa cost all together around $2 million ozzy dollars, bought prices...... They are all at least.......... she states worth less than she paid, a minimum of 10% underwater, as i write..........So she is around 5 times buying and selling costs down, so thats $100k, plus at least $200k down on buying prices, so her deposits all gone......At 29 $300k in negative equity, not good for the general economy...... The cost of living out here is crazy, its killing the real economy.............People are skint, second hand car prices are dropping, thats quite unique out here.... But it ain't raining, and it has not stopped in the UK since we left Blighty......

I am in Australia, QLD, it's getting bleaker.....was here in 2008, but very different now.....job losses, shops shutting, rents, and debt servicing sucking money out of the retail economy, so a kind of austerity, house prices are maybe 10% off peak in top rated area's. maybe 30% off peak in vunerable area's, high job losses. Me, i think without the mining, well Australia, would not be a nice place to be.........For the over leveraged, which is many...

http://australianpropertyforum.com/topic/9643505/2/ My own experience from doing business with china for the last 7 years, and this is with mainly smaller manufacturers. MOQ or minimum order quantities have been slashed from the usual 10,000 units to 500-1000 units. Prices have dropped by 10-12% in the last 6 months. Packaging is at its lowest cost per unit that I have seen. Tooling fees for custom orders in many cases have been reduced or now are free. Production times have reduced from 30-45 days to 15-30 days. The secondary sellers or factory agents are working on wafer thin margins, much so now that the savings by working with individual factories rather than the agents are nearly not worth the hassle. This can appear as a boon for importers, but you have to move stock very quickly or the next shippment that lands is cheaper and you are stuck with expensive stock. This is also causing a compression of margins at this end. Talking to the Chinese they are very concerned at the lack of orders out of Europe and North America and are trying to keep their factories running. It is a change in sentiment from only a few years ago, when they were frantically trying to expand their businesses. Make of it what you will. As everything in China MOQ's have always been up for negotiation. before it was 10,000 units but you could still get a deal at 7000. Now factories are openly telling you they will accept 1000 with no price premium. This has only started to happen more commonly over the last 3 months. Alibaba is mainly the domain of merchants and traders, although by retail standards the prices seem cheap the products have gone through a few hands. I often hear alot of stories of westerners getting stung by the Chinese, in my experience I have found them to be very trustworthy. Once relationships are formed it is not uncommon to receive a commercial invoice days after the ship has left shore with your goods FOB. After the first few orders you are rarely asked for a deposit. They often send hand made gifts, and are exceptionally hard working and considerate. It can be quite unnerving to do business on an agreement with minimal paperwork/contracts etc but it is very efficient. The only fault some of the younger Chinese have is their opinion that a western lifestyle is superior to their own. Having worked with them I find they are happier and more content than their western counterparts! but the grass is always greener.

You pay a flood levy here in Queensland, its a tax add on........

If its not embarressing, its too much...£165k

Also, energy cannot be destroyed, because it actually exists so existed; whereas money can be destroyed because it may not have actually existed in the first place.... I have a thought......If you have five houses, they are all valued at £10 each, there is £5 in the monetry system, so 10% of the value of the houses, this £5 moves at a speed servicing all services and goods required....We print another £5, so now 20% of the value of the houses....Are the houses devalued due to the printing of the new money? They were orignally valued at £10 each against £5 in the monetry system, now still valued at £10 each, but against £10 in the monetry system. So a 100% increase in debt backed money chasing goods and services, which must have an affect of assett values set against the monetry system? Have the assetts been devalued...I say yes by 10%........Each house is worth £10...............£5 in the original monetry system, now £10 in the monetry system due to printing.....So an increase of £5 divided by 5 houses equals £1.00 per houseof the value, so the house is now worth £9 due to printing of the new money, a 10% decrease? So printing new money reduces assett values the assett is valued against, surely, or have i missed something? Thoughts

So cash parked in an account could be regarded as Entropy.......This money has no velocity....... As the system becomes more disordered, and its energy (money) becomes more evenly distributed, that energy becomes less able to do work. A car rolling along a road has kinetic energy that could do work, as friction slows it down and its energy is distributed to its surroundings as heat...As money slows, it gets parked, so has no velocity..

Welcome back my friend, good to see you posting again, this place is a better place with you on here.....

I have a question, i am not making an assumption..... If the system Sterling is a system, closed, similar to a system in Thermodynamics, you cannot create or destroy energy, it is just what goes in comes out, energy in equals energy out.....whether productive or lost due to inefficiency etc... So the Sterling system is a £1000 pounds system, made up of 97% percent of electronic money, and 3% of paper money...The interest rate on the system is 1%, so the system requires to be paid back £10 annually.....But the £10 cannot be afforded, as the system haemorrhages money due to costs, all the costs in the system add up to over £1000 per annum, so the interest of £10 cannot be paid or honoured......So we print more money whether electronic or physical to cover the shortfall.....We print £10 per annum to pay the interest on the system debt....So after a year the system money grows in size due to printing, but reduces the buying power of the money already in the system as we print more money to cover our shortfall..So eventually, now we are printing money to pay interest on debt which becomes self perpetuity..... Is this where we are at?

http://libertystreeteconomics.newyorkfed.org/2012/05/whats-driving-up-money-growth.html To understand QE, you really need to read and understand the link above....

http://pragcap.com/hussman-qe-isnt-adding-new-liquidity-to-the-market Yep, a very good link, i suggest anyone read, and fully understand the script written in this link before arguing QE is directly printing electronic funds and handing these funds to either the banks to lend more or the government to fund the deficit........ I get the distinct impression, of many on here do not fully understand the process of QE.........QE basically reduces the time to maturity of UK Gilts...Thats my understanding from the link above....Feel free to burn me, i am on fire...