HumanAction Posted March 5, 2009 Share Posted March 5, 2009 In an already inflationary depression, it's insane. When the shops are empty - remember why and who to blame. Central bankers, evil grasping thieves, liars and spivs. I dont really disagree in any meaningful way. I only lack your certainty over the timelines involved. Obviously the bad stuff will happen very fast but I cant tell when. Quote Link to comment Share on other sites More sharing options...
50%deposit Posted March 5, 2009 Share Posted March 5, 2009 are they printing this money in 5p pieces? Or is it all in 1p coins? or is it just a £75bn note? Forward thinking to when £75bn is about a weeks wages? thats alot of money. Quote Link to comment Share on other sites More sharing options...
Timm Posted March 5, 2009 Share Posted March 5, 2009 perhaps Timm is doing a daily figure ? zimbabwea baby, here we come... Sorry, it is for the quarter. Quote Link to comment Share on other sites More sharing options...
angrypirate Posted March 5, 2009 Share Posted March 5, 2009 that's a whole lot of sleepless nights in imo. Why? saving bonds in 2 different banks that will be covered (unlike icesave) by the government if they go under. I dont get what i should be having sleepless nights Quote Link to comment Share on other sites More sharing options...
whyohwhy Posted March 5, 2009 Share Posted March 5, 2009 Nobody is talking about the habit. Do we seriously believe that when Broon becomes used to printing his deficits up he'll stop? The line is being crossed and they won't go back.That is the issue EDM, not £140bn as a one-off, or are you prepared to bet this won't happen again? Which is what his NWO speech to the US congress was about yesterday. The difference is we need all countries to do it in unison to avoid the economic imbalance. This will definitely be a key agenda at the G20 Quote Link to comment Share on other sites More sharing options...
A.steve Posted March 5, 2009 Share Posted March 5, 2009 This money will be backed by debt - when it is used in QE... because it is going to buy debt from the banking system. This will not alter the amount of money in the financial system - unless, of course, someone screws up and buys bad debts... I see no evidence for that - yet, at least. Quote Link to comment Share on other sites More sharing options...
VeryMeanReversion Posted March 5, 2009 Share Posted March 5, 2009 So all those saving to buy a house you are now getting an 18.2% return on your money. ..whilst paying no tax. VMR. Quote Link to comment Share on other sites More sharing options...
King Of Fools Posted March 5, 2009 Share Posted March 5, 2009 (edited) Sounds like another good reason to get the Halifax Reward Current Account and be paid £5 a month for having it! http://www.halifax.co.uk/bankaccounts/rewa...ent-account.asp Edited March 5, 2009 by King Of Fools Quote Link to comment Share on other sites More sharing options...
lowrentyieldmakessense(honest!) Posted March 5, 2009 Share Posted March 5, 2009 http://www.bankofengland.co.uk/publication...ws/2009/019.htm And what happens after 3 months? it prints more the law of accelerating issue and depreciation http://lynncoins.com/fiat-money-france5.htm And, finally, as to the general development of the theory and practice which all this history records: my subject has been Fiat Money in France; How it came; What it brought; and How it ended.It came by seeking a remedy for a comparatively small evil in an evil infinitely more dangerous. To cure a disease temporary in its character, a corrosive poison was administered, which ate out the vitals of French prosperity. It progressed according to a law in social physics which we may call the “_law of accelerating issue and depreciation._” It was comparatively easy to refrain from the first issue; it was exceedingly difficult to refrain from the second; to refrain from the third and those following was practically impossible. It brought, as we have seen, commerce and manufactures, the mercantile interest, the agricultural interest, to ruin. It brought on these the same destruction which would come to a Hollander opening the dykes of the sea to irrigate his garden in a dry summer. It ended in the complete financial, moral and political prostration of France-a prostration from which only a Napoleon could raise it. Quote Link to comment Share on other sites More sharing options...
grumpy-old-man-returns Posted March 5, 2009 Share Posted March 5, 2009 If they keep this up (and they will) houses won't be bought.They'll be "break in and keep if you can." did a bit of reading on von mises last week. What a very intelligent, way ahead of his time & seemingly nice down to earth guy. I particularly liked the bit about him not being paid by the establishments (recieving only money from businesses who I assume thought he was very good) & inviting people around to his house & even kept his phone number listed publicly available. he obviously loved his work. Quote Link to comment Share on other sites More sharing options...
Shao Kahn Posted March 5, 2009 Share Posted March 5, 2009 Why? saving bonds in 2 different banks that will be covered (unlike icesave) by the government if they go under. I dont get what i should be having sleepless nights I think he meant about the rates that will probably be on offer once your bonds expire in May, should you be looking to stick your money in a simlar scheme gain, or in a savings account... Quote Link to comment Share on other sites More sharing options...
0q0 Posted March 5, 2009 Share Posted March 5, 2009 Some people just dont know when to stop.....It's getting to that 'time of night' in the economy now when nearly everyone is pissed, curried and kebabed, it's 2 am and people are starting to look for fights, drugs and to persuade bouncers to let them in. And we're the designated drivers, and, frankly, it's not fun anymore. Well said. Great summing up. Indeed it was. Well now, today the BoE have 100% confirmed they are insane or that things are so bad they have no option but to head right into the fire. Quote Link to comment Share on other sites More sharing options...
the-sign-jacker Posted March 5, 2009 Share Posted March 5, 2009 What happens to that cash sitting in the banks ? sleeples nights coupled with no interest is not good ? it doesnt sit in the bank. they go into alternative wealth holders. Quote Link to comment Share on other sites More sharing options...
R WETHEREYET Posted March 5, 2009 Share Posted March 5, 2009 Welcome and yes, but don't almost all of them stink in the end? Politicians' careers end in failure so much of the time.The next election needs supervision to oversee fair voting - see Off Topic. probably been said a million time,s on here but career politicians= looking after no 1 /snout in trough/short termism What we need is a requirement that they should be successful business people with 20 years plus experience in the private sector. Alan Sugar for PM I suppose! Quote Link to comment Share on other sites More sharing options...
lulu Posted March 5, 2009 Share Posted March 5, 2009 The funy thing is, I would have just bought a bloody house and not had this worry had houses been any way sensibly priced, but I live in Northern Irealnd where sellers still have their heads in the clouds. Similar situation here, the time I was seriously looking at buying was just as Edinburgh went totally mental. 25% rises every year and people paying tens of thousands of pounds over the 'offers over' prices and valuations. With a minimal deposit with which to play the 'offers over' game and only one year contracts at work at the time the banks just simply did not want to know. Quote Link to comment Share on other sites More sharing options...
Timm Posted March 5, 2009 Share Posted March 5, 2009 This money will be backed by debt - when it is used in QE... because it is going to buy debt from the banking system.This will not alter the amount of money in the financial system - unless, of course, someone screws up and buys bad debts... I see no evidence for that - yet, at least. I don't agree. I can buy gilts with money I have earned or borrowed that is already in the system. So could the BoE. This is different. This money comes from nowhere. It is an addition to the money in the system, that is exactly what it is. (Please prove me wrong). Quote Link to comment Share on other sites More sharing options...
R WETHEREYET Posted March 5, 2009 Share Posted March 5, 2009 are they printing this money in 5p pieces? Or is it all in 1p coins?or is it just a £75bn note? Forward thinking to when £75bn is about a weeks wages? thats alot of money. Speaking of which, how long before £50 notes are in common circulation like the 20. Should wee run a pole? I give it 18 months. Quote Link to comment Share on other sites More sharing options...
The Spaniard Posted March 5, 2009 Share Posted March 5, 2009 As I understand this QE: BankX owns some Gilts, an asset to BankX on its balance sheet. The BoE issues new money into existence and buys the Gilts from BankX. The BoE now owns the Gilts, and BankX has the new money added to its account at the BoE, an asset to BankX. Does this move technically increase the capacity of BankX to lend under Basel rules? Is the new money in BankX's BoE account a "better" class of asset than the Gilts were? (Higher tier?) Any professionals out there know the answer? Quote Link to comment Share on other sites More sharing options...
cht Posted March 5, 2009 Share Posted March 5, 2009 I don't agree.I can buy gilts with money I have earned or borrowed that is already in the system. So could the BoE. This is different. This money comes from nowhere. It is an addition to the money in the system, that is exactly what it is. (Please prove me wrong). Have to say I'm starting to lose faith. The original BoE statements were that QE would be used to buy corporate paper and get private money moving. This is monetising debts, an addiction no government can resist and Broon has got another 15 months. Quote Link to comment Share on other sites More sharing options...
time 2 raise interest rates Posted March 5, 2009 Share Posted March 5, 2009 ..whilst paying no tax.VMR. Even if you save £100 in a year towards buying a house with house prices crashing by £35,000 a year that £100 will be worth £35,100 in a year time. £100 saved to buy a house + £35,000 the house has crashed by will give you a return of £35,100 on a £100 saved. Quote Link to comment Share on other sites More sharing options...
grumpy-old-man-returns Posted March 5, 2009 Share Posted March 5, 2009 I dont really disagree in any meaningful way. I only lack your certainty over the timelines involved. Obviously the bad stuff will happen very fast but I cant tell when. not long according to cgnao Quote Link to comment Share on other sites More sharing options...
HumanAction Posted March 5, 2009 Share Posted March 5, 2009 As I understand this QE:BankX owns some Gilts, an asset to BankX on its balance sheet. The BoE issues new money into existence and buys the Gilts from BankX. The BoE now owns the Gilts, and BankX has the new money added to its account at the BoE, an asset to BankX. Does this move technically increase the capacity of BankX to lend under Basel rules? Is the new money in BankX's BoE account a "better" class of asset than the Gilts were? (Higher tier?) Any professionals out there know the answer? I'm not a professional but at a guess I suspect that the gilts that get brought wont be brought at market value, BoE will pay more than the market would, effectively propping up BankX's ability to lend. Quote Link to comment Share on other sites More sharing options...
billybong Posted March 5, 2009 Share Posted March 5, 2009 I like this bit from that report:"But the Committee also noted that a very low level of Bank Rate could have counter-productive effects on the operation of some financial markets and on the lending capacity of the banking system. On balance, the Committee decided to reduce Bank Rate by 0.5 percentage points, to 0.5%." Hmmm, nice one guys...so these days, 0.5% base rate is not even considered "very low"? Jesus... That the BoE are so blatantly prepared to twist and distort is almost as bad news for the economy as the raw financial situation with the lowest base rates for hundreds and hundreds of years and now combined with printing money. On the other hand the announcement is actually, in a roundabout way, saying that base rates at these record ultra mega low levels are NOW COUNTER-PRODUCTIVE but it's under political pressure to continue cutting. Quote Link to comment Share on other sites More sharing options...
The Atomic Bull Posted March 5, 2009 Share Posted March 5, 2009 I asked the economic panel on radio 5 Live to cite an example of printing money actually working - Japan was the best that they could come up with! Quote Link to comment Share on other sites More sharing options...
time 2 raise interest rates Posted March 5, 2009 Share Posted March 5, 2009 Not to sure what rate of interest turning £100 into £35,100 in a year is but that is what you are getting if you are saving £100 a year for a house in todays housing market. Quote Link to comment Share on other sites More sharing options...
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