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No Qe Is Mystic Merv Trying To Force Brown Out?

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As the BoE has withheld £25bn of QE is Mystic Merv now trying to undermine Brown.

Personally I hope he is as we need this delusional tw@ removing.

If the BoE refuse to print and fund the govt will Brown be forced to face up to facts?

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As the BoE has withheld £25bn of QE is Mystic Merv now trying to undermine Brown.

Personally I hope he is as we need this delusional tw@ removing.

If the BoE refuse to print and fund the govt will Brown be forced to face up to facts?

We can but hope...

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As the BoE has withheld £25bn of QE is Mystic Merv now trying to undermine Brown.

Personally I hope he is as we need this delusional tw@ removing.

If the BoE refuse to print and fund the govt will Brown be forced to face up to facts?

Its an interesting point,given a lot of things Mervs being saying.Maybe he has figured out that Brown would let him print forever and never cut spending until we have hyper-inflation.

If the bank said no more was needed as the system was stable,the deficit would continue to shoot up and spending would have to be slashed.

Plus wed see the realdemand for UK gilts then.

One to watch very very close IMO.

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As the BoE has withheld £25bn of QE is Mystic Merv now trying to undermine Brown.

Personally I hope he is as we need this delusional tw@ removing.

If the BoE refuse to print and fund the govt will Brown be forced to face up to facts?

Has it?

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Has it?

they say they are considering not drawing it....yet.

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Has it?

http://news.bbc.co.uk/1/hi/business/8142067.stm

It added it was not planning to extend its quantitative easing scheme under which it creates money to buy bonds in order to stimulate the economy.

It will continue with its current plan to spend £125bn. Some had expected it would increase that amount.

But the move allows it to pause and assess economic data, observers said.

Looking at the figures in the press and the statements given, on the face of it one would assume that the missing £25bn hasn't been magicked into existence.

Although as they are operating in secret they can quite easily say one thing and do another.

However considering the recent statements given by Mystic Merv there is clearly a disagreement, it might even be happening with Darlings prodding. Darling was going to be sacked and replaced with Balls so it wouldn't surprise me if Darling is encouraging Mystic behind the scenes.

No evidence to support this hypothesis but in politics anything is possible.

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http://news.bbc.co.uk/1/hi/business/8142067.stm

Looking at the figures in the press and the statements given, on the face of it one would assume that the missing £25bn hasn't been magicked into existence.

Although as they are operating in secret they can quite easily say one thing and do another.

However considering the recent statements given by Mystic Merv there is clearly a disagreement, it might even be happening with Darlings prodding. Darling was going to be sacked and replaced with Balls so it wouldn't surprise me if Darling is encouraging Mystic behind the scenes.

No evidence to support this hypothesis but in politics anything is possible.

Yes well, the whole idea of doing the right thing for the country when you are chancellor, rather than ******ing it up for the next party didn't do Ken Clarke any favours, did it?

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http://news.bbc.co.uk/1/hi/business/8142067.stm

Looking at the figures in the press and the statements given, on the face of it one would assume that the missing £25bn hasn't been magicked into existence.

Although as they are operating in secret they can quite easily say one thing and do another.

However considering the recent statements given by Mystic Merv there is clearly a disagreement, it might even be happening with Darlings prodding. Darling was going to be sacked and replaced with Balls so it wouldn't surprise me if Darling is encouraging Mystic behind the scenes.

No evidence to support this hypothesis but in politics anything is possible.

Funny things, words.

Afaik the BoE said they'd make the decision in august.

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Funny things, words.

Afaik the BoE said they'd make the decision in august.

agreed, im sure swerve said theyd wait and see.

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How many govt auctions for debt are to be held between now and the next meeting?

If the BoE isn't buying is there a higher chance of failure?

I would have thought a failed auction is very likely.

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Has it?

don't tell me, it doesn't exist and never will exist. QE money isn't real and its having no effect on the ecomony (well how can it when it doesn't exist, I ask you)

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Guest spp

A nice little 3 pager on the increase of government debt on Dr Schoon's website this month -

http://www.drschoon.com/articles/AEFIsAggr...btExcessive.pdf

"In the worst-case scenario the marginal productivity of debt may fall into

negative territory. This means that the economy is on a collision course with the

iceberg of debt. Not only does more debt add nothing to GDP, in fact it causes

contraction and greater unemployment. Debt creation must cease at once as a

matter of utmost urgency".

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A nice little 3 pager on the increase of government debt on Dr Schoon's website this month -

http://www.drschoon.com/articles/AEFIsAggr...btExcessive.pdf

"In the worst-case scenario the marginal productivity of debt may fall into

negative territory. This means that the economy is on a collision course with the

iceberg of debt. Not only does more debt add nothing to GDP, in fact it causes

contraction and greater unemployment. Debt creation must cease at once as a

matter of utmost urgency".

yeah, imagine the queue at the county court as 60 million all go bankrupt at once.

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I would have thought a failed auction is very likely.

But maybe not. The perverse thing about QE is that the more that is created, the less attractive bonds are to real buyers (cuz of inflation fears).

If everyone else is QE-ing and you're not, are you actually gaming the others by making your bonds more attractive?

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don't tell me, it doesn't exist and never will exist. QE money isn't real and its having no effect on the ecomony (well how can it when it doesn't exist, I ask you)

So, you're saying that it is just the QE money that is not real, what about the "money" created during the boom?

Less real, I suppose, because the house in August 2007 bought using 300,000 units of that "money" is today (officially & unanimously) worth 237,000 units of that pre-QE money.

Ain't that so?

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So, you're saying that it is just the QE money that is not real, what about the "money" created during the boom?

Less real, I suppose, because the house in August 2007 bought using 300,000 units of that "money" is today (officially & unanimously) worth 237,000 units of that pre-QE money.

Ain't that so?

It was a bit less intricate than that.

The BoE didn't say they weren;t going to continue QE.

They didn't say anything, putting the decision off until august which for some reason is being reported as discontinuation.

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It was a bit less intricate than that.

The BoE didn't say they weren;t going to continue QE.

They didn't say anything, putting the decision off until august which for some reason is being reported as discontinuation.

Indeed:

"I don't think they know yet [whether quantitative easing is working]," she said.

"The other thing about pausing is that they can always do more if the economic data deteriorates again."

I don't think they know yet? WTF??

They're not even pretending to know anymore?????

It's fu cking hilarious.

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As the BoE has withheld £25bn of QE is Mystic Merv now trying to undermine Brown.

It's a disgrace! 25 billion squid is over £400 for every man, woman and child in the UK. By withholding it they're making us all poorer! :angry: :huh::D

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But maybe not. The perverse thing about QE is that the more that is created, the less attractive bonds are to real buyers (cuz of inflation fears).

If everyone else is QE-ing and you're not, are you actually gaming the others by making your bonds more attractive?

Its a market - the mechanism works of its not interferred with.

There is no situation where the bonds 'dont sell', only where bonds dont sell at a particular rate.

In order to get the bonds sold the govt drops the price which increases the return, increases the interest payable on the bonds.

Higher rates = more attractive investment = more buyers.

Lower rates = less attractive investment = less buyers - and possibly a 'failed' auction.

The govt are trying to keep rates down and the market is telling them to put rates up.

The rates on bonds feed almost exactly into what we call 'interest rates' and/or mortgage rates.

The govt know higher rates will crucify people with loans/mortgages and are desperate to keep them down.

The way they are doing this is by QE.

'If the market wont buy the bonds, we'll buy them ourselves and keep rates artifically low.'

Edit to add - http://cityunslicker.blogspot.com/2009/07/...eyond-more.html

Edited by needle

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Indeed:

"I don't think they know yet [whether quantitative easing is working]," she said.

"The other thing about pausing is that they can always do more if the economic data deteriorates again."

I don't think they know yet? WTF??

They're not even pretending to know anymore?????

It's fu cking hilarious.

It would be if it weren't so serious.

It's a good job the BoE economic models are so accurate.

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