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Errol

Bank Of England Injects £25bn More Into Economy

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Shitty, shitty. They have no policy, other than to try and encourage the recklessness that cause this mess and perpetuate the same failed economy that they themselves were instrumental in encouraging in the first place.

They have learnt nothing from 10 years of failure - even when the banks bankrupsted themselves following their cheap money greed.

Must need some more top-ups to their pension investments, I bet this policy of QE runs in tandem with the BOE's investment portfolio. You have to wonder who were the biggest crooks - the private bankers, or this lot. The heads of both seem to have emerged with the same sort of pension pots.

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Shitty, shitty. They have no policy, other than to try and encourage the recklessness that cause this mess and perpetuate the same failed economy that they themselves were instrumental in encouraging in the first place.

They have learnt nothing from 10 years of failure - even when the banks bankrupsted themselves following their cheap money greed.

Must need some more top-ups to their pension investments, I bet this policy of QE runs in tandem with the BOE's investment portfolio. You have to wonder who were the biggest crooks - the private bankers, or this lot. The heads of both seem to have emerged with the same sort of pension pots.

2007 was their perfect year and it's where they want to be - forever.

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2007 was their perfect year and it's where they want to be - forever.

Sheer perfection - up to the point where HBOS/Lloyds did so well that between them they dumped 100 billion of worthless trash on the taxpayer, RBS, another 300 billion odd, + Northern shithouse and all the others.

If this is perfection, I'd hate to see what would happen if they got it wrong.

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2007 was their perfect year and it's where they want to be - forever.

Yes destroying all private capital so that only government can decide who has any assets.The biggest theft in history yet no debate about it.

People who saved their labour seeing it printed away for those who borrowed against their future labour.

Of course when the borrowed labour isnt re-paid with labour we get hyper-inflation.

This is coming to a head now.Gilts will crack very soon IMO.A run on sterling and massive spending cuts most would think unheard of.

In nominal terms down at least 20%.Inflation adjusted 50%+.

The talk of its not inflation because there its not leaking out is rubbish.All that sterling will come home and we will import back all the inflation in a matter of months.

Why anyone would hold sterling is beyond me.Get into a currency backed by commodities.Its the only hope of holding onto your wealth.

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In the 'This is Money' version there is this quote from an RBS 'economist' :lol:

'There is not really any evidence that this money is going to the corporate sector. It seems to be staying within the financial system.'

LINK

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“There was a widespread feeling among the members of the IEA’s shadow committee that QE was the only effective monetary policy instrument presently available to the authorities,†it said. “Several committee members believed that the present schedule of gilt purchases should be extended. Some members thought that an additional £100 billion to £150 billion of debt repurchases was required once the current package had run its course.â€

I think the best option at this point is another £150 billion of gilt purchases. My opinion has been they might as well keep printing like crazy until inflation gets to 2%. Its at that point that things get complicated. Maybe they can even sneak it up to 5% if they are willing to lie about the inflation numbers.

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I think the best option at this point is another £150 billion of gilt purchases. My opinion has been they might as well keep printing like crazy until inflation gets to 2%. Its at that point that things get complicated. Maybe they can even sneak it up to 5% if they are willing to lie about the inflation numbers.

LOL.

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I think the best option at this point is another £150 billion of gilt purchases. My opinion has been they might as well keep printing like crazy until inflation gets to 2%. Its at that point that things get complicated. Maybe they can even sneak it up to 5% if they are willing to lie about the inflation numbers.

They already lie about the inflation numbers.

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I think the best option at this point is another £150 billion of gilt purchases. My opinion has been they might as well keep printing like crazy until inflation gets to 2%. Its at that point that things get complicated. Maybe they can even sneak it up to 5% if they are willing to lie about the inflation numbers.

So what you're saying is that we should simply print ourselves out of this mess?

The government need to go cold turkey on their budget extravagance but they havn't got the balls, the public sector is now so large that any potential government needs their support to get into power.

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Being in the deflation camp the amount of money sitting around waiting just seems to be growing again.

They print it, but the original problem remains the same, how do you force it down peoples throats if they

won't spend, take on debt or invest and are saving, paying off debt and fear job losses. You can bypass

that by Government spending or creating the conditions for a new bubble through regulation.

If it builds up and up then the BOE could be forced to go into real negative rates instead of QE and the

money might move too fast forcing them to raise rates, or they could raise rates to show they have

the balls to do it. Speeches by two different BOE members have talked bout the balls and negative rates

issues.

The whole thing seems very unstable and volatile right now with no release valve. And even worse it

could stay like that for years.

Edited by Tom Peters

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I think the best option at this point is another £150 billion of gilt purchases. My opinion has been they might as well keep printing like crazy until inflation gets to 2%. Its at that point that things get complicated. Maybe they can even sneak it up to 5% if they are willing to lie about the inflation numbers.

Hi Gordon.. get back to your day job .. on second thoughts .. stay here so you cant play in the real world

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That's fantastic news.

It's already working and this is the final step to getting HPI back. That will be good for everyone.

Surely the reverse, they will look to see if the economy is recovering and if not put more money in.

If it stabilises the BOE can stop the process.

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from the govt & central bank that brought this disaster upon the country we expect a cure?

only the simpleton bulls believe a regime that wrecked everything is now on track to right anything

thats one heck of a leap of faith in a sticking plaster solution

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Shitty, shitty. They have no policy, other than to try and encourage the recklessness that cause this mess and perpetuate the same failed economy that they themselves were instrumental in encouraging in the first place.

They have learnt nothing from 10 years of failure - even when the banks bankrupsted themselves following their cheap money greed.

Must need some more top-ups to their pension investments, I bet this policy of QE runs in tandem with the BOE's investment portfolio. You have to wonder who were the biggest crooks - the private bankers, or this lot. The heads of both seem to have emerged with the same sort of pension pots.

+1, saved me saying it.

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I think this release of the last £25bn (of the £150bn already approved) was widely expected, though perhaps not so soon.

What would rattle some cages is if a further amount, beyond the initial £150bn is approved.

And we really don't want to wake the beasts in some of those cages.

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That's fantastic news.

It's already working and this is the final step to getting HPI back. That will be good for everyone.

Exactly how did this cretin escape full troll status? He is so much more of a troll than McTavish and adds nothing to the board apart from being the forum idiot.

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How did you come up with that number, and why stop there?

My actual estimate circa 2008 was £350 billion a year would be needed of QE. Basically the money supply in the UK was expanding at £400 billion a year, over 90% of that through the private creation of bank credit. Because of technological progress ever greater amounts of money are needed in the system to keep prices stable.

So once the private creation of bank credit collapsed which it was obvious it was going to, instead of creating ~£400 billion a year it went negative or near negative. Which in the real world means people are paying back old debts faster than new debts are being created.

The inevitable result was deflation. The authorities then went with their old tried and true method of lowering interest rates in order to get people borrowing again. Which I also predicted would fail, as people are already so over-leveraged there is no way they could take out more, especially in this economy. So plan B, the authorities have to use QE. I actually think they have to go bigger now maybe more like £500 billion a year to get out of the deflationary death spiral.

Edited by aa3

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I think the best option at this point is another £150 billion of gilt purchases. My opinion has been they might as well keep printing like crazy until inflation gets to 2%. Its at that point that things get complicated. Maybe they can even sneak it up to 5% if they are willing to lie about the inflation numbers.

economic disaster

just watch

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economic disaster

just watch

My plan and now the powers that be plan will probably end with a hyperinflationary blow off. The way I look at it Britain would already have collapsed ala the eastern euro communist countries in 1990, without QE.

I showed on another thread how if the government actually did the 21% cuts instead of QE.. it would likely mean ~1.7 million jobs lost and 20% unemployment. So it isn't really an option.

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My plan and now the powers that be plan will probably end with a hyperinflationary blow off. The way I look at it Britain would already have collapsed ala the eastern euro communist countries in 1990, without QE.

I showed on another thread how if the government actually did the 21% cuts instead of QE.. it would likely mean ~1.7 million jobs lost and 20% unemployment. So it isn't really an option.

currency destruction will be worse than deflation

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