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Uk Moves To Quant Easing


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Didn't Darling deny it just a week or so ago? I saw him interviewed on t'telly. So very unlikely to now just 10 days or less later do a 180.

No offence intended, but how nieve are you? Brown and Darling are exactly the type of characters that would do a 180 in 10 days. In fact, they havent done a 180 in 10 days - they just lied 10 days ago.

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Unfortunately so few people have cash savings that Labour have calculated that vapourising the economy doesn't matter.

I think I may chase that CHF account I'm opening today.

Can you remind us all which is a (if not 'the') major industry in Switzerland and how has, for example, UBS been doing lately ;) ?

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Didn't happen in Japan. They did QE for years than gave up when they realised it doesnt work if everyone is paying down debt.

Take a look at the Japanese bubble books if you have time, "Bubble Economy" book and Richard Koos new one (Holy grail of macroeconomics) about how economic policy has to change when the economy is in a debt-repayment phase.

The main point of the latter book is that once greed has turned to fear, there is nothing you can do to stop it. THe government has to become the spender of last resort to avoid meltdown.

VMR.

they exported there inflation via the carry trade i.e. there was demand for the money they QE'd into exsistance and they sold there goverment debt no problem a lot of it funded out of there own peoples savings...

we have none of the same conditions and america and a load of other countries all trying to sell there debt at the same time...

this will not be "like japan" at all, please get that out of your heads once and for all please.

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Didn't happen in Japan. They did QE for years than gave up when they realised it doesnt work if everyone is paying down debt.

Take a look at the Japanese bubble books if you have time, "Bubble Economy" book and Richard Koos new one (Holy grail of macroeconomics) about how economic policy has to change when the economy is in a debt-repayment phase.

The main point of the latter book is that once greed has turned to fear, there is nothing you can do to stop it. THe government has to become the spender of last resort to avoid meltdown.

VMR.

It depends on your starting position. If your starting position is one of highish inflation, then more inflation is inevitable.

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Can somebody help me out here?

I thought it could only be inflationary if the some of the supply of money entering the economy increases. If the BOE chucked the £50billion into the economy then that would create inflation but if they also ensure that £50 billion is taken out through other measures like increasing tax or interest rates then the equilibrium is maintained.

I don't understand all this but I have a vested interest in understanding so any help would be welcomed.

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Can somebody help me out here?

I thought it could only be inflationary if the some of the supply of money entering the economy increases. If the BOE chucked the £50billion into the economy then that would create inflation but if they also ensure that £50 billion is taken out through other measures like increasing tax or interest rates then the equilibrium is maintained.

I don't understand all this but I have a vested interest in understanding so any help would be welcomed.

avoiding deflation means the "taking out" part is basically out the window this is blatent money printing and dont let the bankster fanboys kid you otherwise....this is gordons last stand and the next step is full on nationalization of everything not already run by or for the state, just watch.

the deflationistas/banker fanboys have been are and will be dead wrong every time the option to alow defaltinary forces to run there course comes along the inflationary option gets taken every single time for over a year, wake the fuk up now please. ;)

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Can somebody help me out here?

I thought it could only be inflationary if the some of the supply of money entering the economy increases. If the BOE chucked the £50billion into the economy then that would create inflation but if they also ensure that £50 billion is taken out through other measures like increasing tax or interest rates then the equilibrium is maintained.

I don't understand all this but I have a vested interest in understanding so any help would be welcomed.

Printing an extra £50bn will mean that prices increase by as much as 2%.

It is inflationary.

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they exported there inflation via the carry trade i.e. there was demand for the money they QE'd into exsistance and they sold there goverment debt no problem a lot of it funded out of there own peoples savings...

we have none of the same conditions and america and a load of other countries all trying to sell there debt at the same time...

this will not be "like japan" at all, please get that out of your heads once and for all please.

Japan with high interest rates

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Guest sillybear2
So where is the wage inflation coming from?

If this is the case, everyone is fooked.

It doesn't come from anywhere, hence your standard of living is further eroded, basically it's another method of the banksters stealing what little remains of real value being created in the economy. It allows them to destroy the value of your savings (past labour) and the current value of your work.

Wage inflation doesn't occur unless there's major strike action, and with high unemployment and people fearful of losing their jobs, this may never happen, the probable outcome is more border line workers finding more 'value' in dropping out of the work and living on social provision, a great way of solving the government's deficit, and if recession marked by the lack of productive output, bringing us out of the dip :rolleyes:

Edited by sillybear2
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Guest sillybear2
Can somebody help me out here?

I thought it could only be inflationary if the some of the supply of money entering the economy increases. If the BOE chucked the £50billion into the economy then that would create inflation but if they also ensure that £50 billion is taken out through other measures like increasing tax or interest rates then the equilibrium is maintained.

I don't understand all this but I have a vested interest in understanding so any help would be welcomed.

This isn't any £50b, but new narrow money, so once it filters through and forms part of bank reserves you can multiply its impact by x10, at the very least. Broad money or bank credit (debt to us) forms 97% of the money supply and rests on a tiny monetary base, much like an inverse pyramid.

derivatives_pyramid.jpg

So to say it's just another £50b is inaccurate, it's quite different than issuing gilts to genuine buyers/savers then stuffing the proceeds down the mouth of the banksters, that simple misallocation of resources and rewarding failure, printing money is an attempt at creating value out of thin air. Typical Labour thinking means they believe they can get something for nothing, and nobody has to pay the price.

post-13375-1232374889_thumb.jpg

Edited by sillybear2
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  • 441 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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