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Brown Orders More Printing Of Money

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http://www.telegraph.co.uk/finance/economi...ncrease-QE.html

By Angela "Angie" Monaghan
Published: 6:00AM BST 09 Jul 2009
The move to pump more newly created money into the economy through the purchase of Government bonds and other assets would follow a stream of worse-than-expected economic data in recent days, and a lack of evidence that the programme of quantitative easing is having the desired effect.
"QE is not yet achieving its aims. The amount of money held by companies, and lending to businesses, both fell in May. More forceful measures are needed to nurture confidence," said David Kern, chief economist at the British Chambers of Commerce (BCC).

It is not working because the black hole is measured in trillions, not the odd billion. IMO it would be better for Brown to admit failure and allow the natural course of his collapsing property bubble to the followed: pay for the free lunch honestly.

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Ludwig von Mises describes the endgame brought on by reckless expansion of credit: "There is no means of avoiding the final collapse of a boom brought about by credit (debt) expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit (debt) expansion, or later as a final and total catastrophe of the currency system involved."

It's going to go boom, this delusional idiot doesn't grasp it.

Printing money seems so easy and he's got away with it the first time so he'll try again.

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so the Chambers of Commerce think that printing money makes people more confident in it.

Lucky I cancelled my membership of this useless organisation years ago.

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Feck me! There's going to be a national shortage of ink at this rate!

I don't know about that, but there is a national shortage of (real-terms) safe assets to invest your money in.

I got 0% from the NSI index-linked savings bond, yet the goverment are creating money out of thin air. :o

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It's going to go boom, this delusional idiot doesn't grasp it.

Printing money seems so easy and he's got away with it the first time so he'll try again.

I think you are missing the point. Our whole monetary system is dependent upon continued expansion of credit. To voluntarily abandon credit expansion is to voluntarily collapse the currency, Brown is doing his best to preserve the currency ( which is essentially impossible ). Currency collapse is inevitable because destruction of trust in money is inevitable, either through heavy ( possibly hyper) inflation or as people see their deposits vanish, destroyed by defaults and a deflationary spiral.

Whatever currency we get next will have to be backed by hard assets or it will go the same way.

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I think you are missing the point. Our whole monetary system is dependent upon continued expansion of credit. To voluntarily abandon credit expansion is to voluntarily collapse the currency, Brown is doing his best to preserve the currency ( which is essentially impossible ). Currency collapse is inevitable because destruction of trust in money is inevitable, either through heavy ( possibly hyper) inflation or as people see their deposits vanish, destroyed by defaults and a deflationary spiral.

Whatever currency we get next will have to be backed by hard assets or it will go the same way.

I know that the entire system is based on exponential growth. If the money supply doesn't grow we are in trouble.

It's a fantastic system.

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I know that the entire system is based on exponential growth. If the money supply doesn't grow we are in trouble.

It's a fantastic system.

Exponential growth :

:ph34r:

:ph34r::ph34r:

:ph34r::ph34r::ph34r::ph34r:

......

Edited by crashologist

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I know that the entire system is based on exponential growth. If the money supply doesn't grow we are in trouble.

It's a fantastic system.

.... and the reason why every HPCer should buy as many assets on credit in the next trough....

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Why do they expect business lending to grow?

Surely businesses are running down stock and not looking to expand at times like these. Spunk it all on the mortgage market, theres no shortage of greater fools there.

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It's going to go boom, this delusional idiot doesn't grasp it.

Printing money seems so easy and he's got away with it the first time so he'll try again.

I like that Von Mises quote. I may pinch it for my sig if I may.

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so the Chambers of Commerce think that printing money makes people more confident in it.

THis is exactly the point isn't it? The only reason QE is taking place is because they ran out of bullets in the IR gun. And that means, without QE they look like they are doing nothing, and their constant barracking of the conservatives whenever they can (boring as it is) as the 'do nothing party' wouldn't work!

Basically they are 'doing something' just for the sake of looking like they are not 'doing nothing'. Its brilliant that our country is run ike this isn't it!? :lol::lol::lol: (ironic laughter)

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A passage from a book written in 1912 regarding the effect of money printing in 18C France which another HPCer linked to yesterday.

Now began to be seen more plainly some of the many

ways in which an inflation policy robs the working class.

As these knots of plotting schemers at the city centers were

becoming bloated with sudden wealth, the producing classes

of the country, though having in their possession more and

more currency, grew lean. In the schemes and speculations

put forth by stock-jobbers and stimulated by the printing

of more currency, multitudes of small fortunes were absorbed

and lost while a few swollen fortunes were rapidly

aggregated in the larger cities. This crippled a large class

in the country districts, which had employed a great number

of workmen.

In the leading French cities now arose a luxury and license

which was a greater evil even than the plundering

which ministered to it. In the country the gambling spirit

spread more and more. Says the same thoughtful historian

whom I have already quoted: "What a prospect for a country

when its rural population was changed into a great band

of gamblers!"*

Nor was this reckless and corrupt spirit confined to business

men; it began to break out in official circles, and public

men who, a few years before, had been thought above all

possibility of taint, became luxurious, reckless, cynical and

finally corrupt. Mirabeau himself, who, not many months

previous, had risked imprisonment and even death to establish

constitutional government, was now—at this very

time—secretly receiving heavy bribes. When, at the downfall

of the monarchy a few years later, the famous iron chest

of the Tuileries was opened, there were found evidences

that, in this carnival of inflation and corruption, he had been

a regularly paid servant of the Royal court.† The artful

plundering of the people at large was bad enough, but worse

still was this growing corruption in official and legislative

circles. Out of the speculating and gambling of the inflation

period grew luxury, and, out of this, corruption. It grew

as naturally as a fungus on a muck heap. It was first felt

in business operations, but soon began to be seen in the legislative

body and in journalism.

Those who do not learn from the mistakes of history are destined to repeat them

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No increase in QE apparently.

Yep. They're holding steady at the current £125bn, which means at the current rate they will run out of money to print in two weeks - the extra £25bn would have seen them through to the August MPC meeting. The markets don't like it.

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It'll be interesting to see what happens once the economy is off the QE binge.

No announcement = no QE?

Why's that like?

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I think you are missing the point. Our whole monetary system is dependent upon continued expansion of credit. To voluntarily abandon credit expansion is to voluntarily collapse the currency, Brown is doing his best to preserve the currency ( which is essentially impossible ). Currency collapse is inevitable because destruction of trust in money is inevitable, either through heavy ( possibly hyper) inflation or as people see their deposits vanish, destroyed by defaults and a deflationary spiral.

Whatever currency we get next will have to be backed by hard assets or it will go the same way.

collapse of fiat currency is always inevitable. Brown isnt trying to "preserve" anything, he is following the desperate path followed by the likes of Zimbabwe (as I predicted), the sums get ever larger and before you know it we have hyper-inflation.

our money system is what it is because of government policy, it can be changed but we have idiot bankers and politicians that want to rip us off and condemn us to hell

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Yep. They're holding steady at the current £125bn, which means at the current rate they will run out of money to print in two weeks - the extra £25bn would have seen them through to the August MPC meeting. The markets don't like it.

it was "only" meant to be 75bn, now 150bn, next they will want 300bn and before you know it they will have printed and devalued the pound with trillions and trillions and it won't work, it will unleash hyper-inflation in the coming months and years but Brown won't care about that..

this policy and path is immensley destructive and most failed states tend to follow it

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It'll be interesting to see what happens once the economy is off the QE binge.

the genie is out of the bottle, we're locked into Brown's scorched earth policy. the binge will not end unless a change of government or a takeover of the country by our creditors (IMF) so they can re-organize the slave population to pay them back over the next 50 years

this is a locked in policy, expect the sums and demands to get every greater and expect it not to work (of course)

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http://www.telegraph.co.uk/finance/economi...ncrease-QE.html
By Angela "Angie" Monaghan
Published: 6:00AM BST 09 Jul 2009
The move to pump more
newly created money
into the economy through the purchase of Government bonds and other assets would follow a stream of worse-than-expected economic data in recent days, and a lack of evidence that the programme of quantitative easing is having the desired effect.
"QE is not yet achieving its aims. The amount of money held by companies, and lending to businesses, both fell in May. More forceful measures are needed to nurture confidence," said David Kern, chief economist at the British Chambers of Commerce (BCC).

It is not working because the black hole is measured in trillions, not the odd billion. IMO it would be better for Brown to admit failure and allow the natural course of his collapsing property bubble to the followed: pay for the free lunch honestly.

newly created money

What is the difference between money and newly created money again??

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What is the difference between money and newly created money again??

Money is like wine and Newly Created Money is like water. When you mix the two you get dilute wine.

As you add more water the volume of the mixture increases but its concentration reduces so you would need to drink more to get drunk.

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Money is like wine and Newly Created Money is like water. When you mix the two you get dilute wine.

As you add more water the volume of the mixture increases but its concentration reduces so you would need to drink more to get drunk.

Very good. ;)

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