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Further Qe Taking Shape?

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I really hope further QE is not necessary , especially given that the last load went up in smoke without any concrete information on the whys and wherefors.

http://uk.reuters.com/article/idUKLDE66K19820100721

LONDON, July 21 (Reuters) - Sterling fell against the dollar and pared gains against the euro on Wednesday after minutes from the Bank of England's latest policy-setting meeting showed further easing was discussed.

The BoE's Monetary Policy Committee voted 7-1 at its July meeting, as lone hawk Andrew Sentance maintained his call for a 25 basis point rise.

Policymakers gave a downbeat tone on growth, even as they warned near-term inflation would remain high. [iD:nLDE66K0R8]

"The pound was fractionally weaker after the minutes as the growth comments were slightly more dovish than expected," said Kenneth Broux, market economist at Lloyds TSB.

"There was some justification to take profits."

By 1505 GMT, sterling had fallen 0.3 percent to $1.5212 GBP=D4, down more than 1 cent from the day's highs.

Trade was choppy, as the pound slipped immediately after the minutes, then held ground before falling back again.

Some in the market had seen potential for a 6-2 vote after comments by MPC member Adam Posen on Tuesday. [iD:nLDE66J20C]

Options with strike price at $1.5200 that expired at the 1400 GMT cut opened up the downside in late European trade.

Earlier in the day, the pound fell sharply, which was attributed to an erroneous electronic trade, traders said.

Sterling fell suddenly to a session low of $1.5168 from $1.5300 at around 0658 GMT, before recovering steadily ahead of the MPC minutes.

EURO FALLS

A view that inflation would remain stubbornly high supported the pound against a broadly weaker euro, but it pared gains by late afternoon trade.

The euro was down 0.1 percent at 84.28 pence EURGBP=D4 after falling to 83.75, near the 50-day moving average.

The euro fell broadly, skidding to the week's lows versus the dollar EUR=, after a Portuguese Treasury bill auction showed yields more than doubling from the previous sale. [iD:nLSB000016]

"The euro is generally weaker so euro/sterling is down but overall I think the outlook for the pound is negative after the MPC questioned the UK's growth outlook," said Ian Stannard, senior currency analyst at BNP Paribas.

The UK economy likely expanded at 0.6 percent in the second quarter, first estimate GDP data is expected to show on Friday. ECONGB

Trade-weighted sterling index =GBP rose to an intraday high of 81.0, its highest level this week, before closing at 80.6.

But technical analysts said a head-and-shoulders topping pattern could signal the way for further losses, with a break of the 79.9 area to trigger a sharp decline in the pound. (Additional reporting by Neal Armstrong; Editing by Toby Chopra)

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They also expressed more lnflation concerns and said that inflation would remain above target for longer than previously thought.

or not.

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Surely we cannot print money with inflation or we risk becoming Zimbabwe? :unsure:

When the housing market starts heading back down again and we get deflation then I'm expecting the printing press to fire back up.

I think we've got a clear run for the rest of this year, but come next year when the hpc is back firmly entrenched, the VAT increase is here and the job losses are starting to bite, then the UK should once again become a dogs dinner.

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Surely we cannot print money with inflation or we risk becoming Zimbabwe? :unsure:

When the housing market starts heading back down again and we get deflation then I'm expecting the printing press to fire back up.

I think we've got a clear run for the rest of this year, but come next year when the hpc is back firmly entrenched, the VAT increase is here and the job losses are starting to bite, then the UK should once again become a dogs dinner.

the money has to flow into the real world for inflation to occur.

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QE Cash is QE cash, this cash has gone to the holders of the bonds, who will probably re-invest not spend, otherwise why would they be holding bonds other than a return of investment such as a pension fund or similar.

This will not get into the real economy, if they thought it would they would QE, its all about keeping long term and short term yields down on asset prices such as bonds maybe house?

Anyway the recievers of the QE cash ain't going out and buy a row of two up two downs, or 5000 Jaguar cars or 100,000 plasma TV's or a big shp at Tesco's.

So QE cash will not be the cause if hyperinflation, its all about yields, interest rates will be kept as low as possible for qas long as possible so the debt lingers and wages stay deflated, we are just gonna get poorer and poorer, work longer and longer for less.

So spend you savings and get used to it!

P

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QE Cash is QE cash, this cash has gone to the holders of the bonds, who will probably re-invest not spend, otherwise why would they be holding bonds other than a return of investment such as a pension fund or similar.

This will not get into the real economy, if they thought it would they would QE, its all about keeping long term and short term yields down on asset prices such as bonds maybe house?

Anyway the recievers of the QE cash ain't going out and buy a row of two up two downs, or 5000 Jaguar cars or 100,000 plasma TV's or a big shp at Tesco's.

So QE cash will not be the cause if hyperinflation, its all about yields, interest rates will be kept as low as possible for qas long as possible so the debt lingers and wages stay deflated, we are just gonna get poorer and poorer, work longer and longer for less.

So spend you savings and get used to it!

P

Another moneycentric reasoning post.

QE pays off nothing. it keeps banks liquid...thats all. course the real money they used to buy the bonds has gone into government coffers as loans...QE merely pops the balance sheet back in order.

Without QE, we'd have had some busted banks.

Now we have some busted banks with cash they cant lend as they are terrified some of their current loans will fail. so they hoard it. And they see the looming end of the rescue schemes.

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QE Cash is QE cash, this cash has gone to the holders of the bonds, who will probably re-invest not spend, otherwise why would they be holding bonds other than a return of investment such as a pension fund or similar.

This will not get into the real economy, if they thought it would they would QE, its all about keeping long term and short term yields down on asset prices such as bonds maybe house?

Anyway the recievers of the QE cash ain't going out and buy a row of two up two downs, or 5000 Jaguar cars or 100,000 plasma TV's or a big shp at Tesco's.

So QE cash will not be the cause if hyperinflation, its all about yields, interest rates will be kept as low as possible for qas long as possible so the debt lingers and wages stay deflated, we are just gonna get poorer and poorer, work longer and longer for less.

So spend you savings and get used to it!

P

confidence

link

Loss of confidence in a currency can be brought about by many reasons, but there is one constant factor. When hyperinflation has occurred in modern history EVERY economy involved was decimated as and when it occurred.

It has never been caused by “Demand-Pull,” but always and without exception caused by “Currency Induced Cost Push Hyperinflation.”

The nonsense being spread by the F-TV taking heads is that the Fed is out of ammunition to fight deflation. That is raving BS. The Fed can and will do QE to infinity which is restricted as a tool by nothing whatsoever. The ECB will not be far behind the Fed.

Argue all you want, but this is exactly what is going to happen starting now. Stop being glib. Study hyperinflation in modern times listed below before you ask me to explain it one more time.

What is out there today QE wise is enough to result in hyperinflation as confidence falls in currencies due to two characteristics, QE and volatility.

history

link

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printy printy

deflation is impossible , when will the delusional deflationists realise this?

We are in deflation, if we weren't why would they QE already.

[ laymans view on QE] its meant to encourage banks to lend by keeping yields in

"safe" investments down.[ gilts .bills, etc]

But collapsing demand, malinvestment realization[ afterall banks main conduits]

will not lend[ to 2007 degree anyway]

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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