Panda Posted September 26, 2009 Share Posted September 26, 2009 This is the plan; To devalue the pound Sterling so they can then purchase real pounds cheaply with their foreign reserves in order to dilute all the fake/electronic pounds they created to prop up the banking system through QE. Then they can run down their foreign reserves, remove all the fake pounds from the British economy to boost the exchange rate back up by buying back the foreign reserves. Quote Link to comment Share on other sites More sharing options...
mbga9pgf Posted September 26, 2009 Share Posted September 26, 2009 This is the plan;To devalue the pound Sterling so they can then purchase real pounds cheaply with their foreign reserves in order to dilute all the fake/electronic pounds they created to prop up the banking system through QE. Then they can run down their foreign reserves, remove all the fake pounds from the British economy to boost the exchange rate back up by buying back the foreign reserves. Yep, I think it will make gilts more attractive. More importantly, the QE cash is boosting asset values, including the assets purchased by the UK goverment. Win win it seems, for everyone not holding cash.... Quote Link to comment Share on other sites More sharing options...
Mega Posted September 26, 2009 Share Posted September 26, 2009 He going to have to drive the £ down a LONG.................L O N G way! I say £1.25 to the Euro! Mike Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted September 26, 2009 Share Posted September 26, 2009 i say the £2 litre is only an hour away...... Quote Link to comment Share on other sites More sharing options...
mbga9pgf Posted September 26, 2009 Share Posted September 26, 2009 (edited) i say the £2 litre is only an hour away...... Thats before they whack on duty as well! Not sure inflation targetting is such a good idea. Surely Wage growth targetting would be a better idea? Edited September 26, 2009 by mbga9pgf Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted September 26, 2009 Share Posted September 26, 2009 Thats before they whack on duty as well!Not sure inflation targetting is such a good idea. Surely Wage growth targetting would be a better idea? oil is easy to manipulate and taxate for the masses. its a daily essential. in effect the 'bread' of today. Quote Link to comment Share on other sites More sharing options...
Griptool Posted September 26, 2009 Share Posted September 26, 2009 Thats before they whack on duty as well!Not sure inflation targetting is such a good idea. Surely Wage growth targetting would be a better idea? They dont target inflation - they target inflation expectations which is what drives wage growth -creating an unwelcome feedback( ). Quote Link to comment Share on other sites More sharing options...
CokeSnortingTory Posted September 26, 2009 Share Posted September 26, 2009 It would certainly be nice to believe they have a plan. Or even a clue. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted September 26, 2009 Share Posted September 26, 2009 This is the plan;To devalue the pound Sterling so they can then purchase real pounds cheaply with their foreign reserves in order to dilute all the fake/electronic pounds they created to prop up the banking system through QE. Then they can run down their foreign reserves, remove all the fake pounds from the British economy to boost the exchange rate back up by buying back the foreign reserves. There's a plan? Quote Link to comment Share on other sites More sharing options...
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