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Bo E Parrot Bernake And Promise To Do All They Can To Fight Crisis

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http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7969716/Bank-of-England-will-use-all-powers-to-stave-off-any-future-crisis.html

Bank of England will use 'all powers' to stave off any future crisis
The deputy governor of the Bank of England signalled that the Bank would make aggressive use of new powers planned by the Government to head off any future financial crisis.
By Dominic Midgley
Published: 10:16PM BST 28 Aug 2010
Charles Bean, Deputy Governor of the Bank of England Photo: NEWSCAST
In a major position paper, Charles Bean said that the Bank had been powerless to prevent what he called the "Great Contraction" of 2008 because control of interest rates was not, in itself, a powerful enough tool.
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UK financial super-regulator will give Mervyn King power to 'bully FSA'He also hinted that the days of quantitative easing may not be over:

We are in just one big mess and the bankers are clueless other than to resort to the same old same old. They will not eradicate the disease (HPI) not matter what.

If I were calling the shots I would allow the market freedom to take house prices down to a proper relationship to wages even if it means a decade of Japanese-style deflation. If they do the same old stuff we can expect the same old result. As Bert Einstein pointed out: the defintion of madness is repeating the same thing and expecting a different result.

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I wondr if Joe Public investors are exiting the DOW and FTSE in larger numbers than the likes of us know - and being replaced by buying of shares by the banks backed by the Fed and BOE?

I wonder, what I mean, if they are seeing trends in the DOW/FTSE that is now beginning to panic them? Or maybe it is just the info they are getting from numerous businesses about poor or falling sales.

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http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7969716/Bank-of-England-will-use-all-powers-to-stave-off-any-future-crisis.html

Bank of England will use 'all powers' to stave off any future crisis
The deputy governor of the Bank of England signalled that the Bank would make aggressive use of new powers planned by the Government to head off any future financial crisis.
By Dominic Midgley
Published: 10:16PM BST 28 Aug 2010
Charles Bean, Deputy Governor of the Bank of England Photo: NEWSCAST
In a major position paper, Charles Bean said that the Bank had been powerless to prevent what he called the "Great Contraction" of 2008 because control of interest rates was not, in itself, a powerful enough tool.
Related Articles
Bank's deputy governor calls for 'pre-emptive action'
Ben Bernanke to get second term as Federal Reserve chairman from President Obama
FSA head: Gordon Brown helped fuel banking crisis
:lol:
Leading banksters converge on Wyoming to assess recovery signs
Lord Sharman peers into the future of finance
UK financial super-regulator will give Mervyn King power to 'bully FSA'He also hinted that the days of quantitative easing may not be over:

We are in just one big mess and the bankers are clueless other than to resort to the same old same old. They will not eradicate the disease (HPI) not matter what.

If I were calling the shots I would allow the market freedom to take house prices down to a proper relationship to wages even if it means a decade of Japanese-style deflation. If they do the same old stuff we can expect the same old result. As Bert Einstein pointed out: the defintion of madness is repeating the same thing and expecting a different result.

I'm inclined to agree with this remedy; as you say most of these people haven't got a clue and instinctively it seems wrong to cure an overhang of debt with yet more debt. This remedy of letting things find their own course is probably the best; it's certainly the way advocated by the likes of Peter Schiff et al. It is to be admitted that it is a bit of a scary solution but, the again, the situation we have now is scary. Of course this is, in essence, a free market solution which is why it will probably never be implemented; the elites, Wall Street et al - those who espouse the free market most loudly - know of course that they have too much to lose and would not be in control of things.

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Yes, because obviously no contraction can be allowed. We can't ever allow asset prices to fall or attempt to control debt levels.

Absolutely - we've had crazy inflation in the price of some assets over the last decade ... Housing spring to mind ... with the financial powers that be seeing no problem with that nor with the massive credit expansion which caused it.

Yet any suggestion that asset prices might fall back to sane levels in line with normal amounts of credit and it's flashing red lights and whooping sirens.

How anyone can think there's going to be sustained deflation beats me. The guys in charge will print, print, and print some more to avoid it. Sooner or later they'll print enough to counter the market-led deflationary pressures and then it's up, up and away ....... the inevitable end for a fiat currency.

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Yes, because obviously no contraction can be allowed. We can't ever allow asset prices to fall or attempt to control debt levels.

No contraction can be allowed because our political idiots have used forecasting models which have predicted future growth and then spent the money / made promises on said future growth which means if this future growth doesn't happen the whole ponzi scheme collapses. Result people might feel a little aggrieved and decide to put certain heads on spikes.

Not surprising they are doing all they can to avoid the contraction to prevent the people from realising our political elite are nothing more than con artists, plus the people themselves don't want to be revealed to the fools taken by the con.

Luckily the economy doesn't naturally want to breathe and contractions never happen...

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Luckily the economy doesn't naturally want to breathe and contractions never happen...

From Mises' "America's great Depression" (the first one..this one has a long way to run before it has finished)

The “boom,” then, is actually a period of wasteful misinvest-ment. It is the time when errors are made, due to bank credit’s tam-pering with the free market. The “crisis” arrives when the consumers come to reestablish their desired proportions. The “depression” is actually the process by which the economy adjusts to the wastes and errors of the boom, and reestablishes efficient service of consumer desires. The adjustment process consists in rapid liquidation of the wasteful investments.

and

"In short, and this is a highly important point to grasp, the depression is the “recovery” process, and the end of the depression heralds the return to normal, and to optimum efficiency. The depression, then, far from being an evil scourge, is the necessary and beneficial return of the economy to normal after the distortions imposed by the boom. The boom, then, requires a “bust.”

Written donkey's years ago.

When you listen to Schiff, you really get the sense that not only is what the central banks are doing is wrong, but the medicine needed it's 180 degrees in the opposite direction.

And so, since all western economies are like huge supertankers that take years to turn around, on top of this, it is going to need a reversal of thinking, and have people either vote or riot to bring about this change.

Assuming of course, that those voters/rioters could see this way of thinking as being the medicine needed. Short(er) term pain for long term gain... the quicker we deflate, the quicker the recovery madness can begin again.

But there's nothing to suggest that people understand this.

We are so f*****. Really.

The sheeple awakening stage is rapidly approaching where soon all fingers will be pointing at the policians and bankers who sold the lie.. shortly afterwards followed by the fingers of the politicans and bankers pointing their fingers to towards some newly created enemies.. Iran (oil priced in euro's uncle sam ? can't have that.. China (dumping our bonds - economic warfare eh?).

Some serious distractions for the masses will be needed in the coming years, that's for sure. The enemy of the people must be seen to be outside, not inside.

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"They" love to start a war with Iran (China) but its too late for that now, no chance of another "False Flag" attack either........i think they just print & try to manage the poplutions.............i wonder how qucik & how far the £/$ will fall?

Mike

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"They" love to start a war with Iran (China) but its too late for that now, no chance of another "False Flag" attack either........i think they just print & try to manage the poplutions.............i wonder how qucik & how far the £/$ will fall?

Mike

Someone posted a book on here the other day that went into detail about the German situation in the early 20's. Of course we've all heard about people getting paid with wheelbarrows of money but this kind of insanity doesn't happen overnight. I'm not saying that we're going into the same situation but I feel another dose of QE will push us over the edge.

As I said on here before the first lot of QE....if your mate down the pub has an unexpected bit of trouble with his van a you and 4 mates lend him 100 quid to get it to be repaired (and he write you all an IOU) then hopefully he'll soon be back earning.

And then there's the next stage.....

Edited by council dweller

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Someone posted a book on here the other day that went into detail about the German situation in the early 20's. Of course we've all heard about people getting paid with wheelbarrows of money but this kind of insanity doesn't happen overnight. I'm not saying that we're going into the same situation but I feel another dose of QE will push us over the edge.

As I said on here before the first lot of QE....if your mate down the pub has an unexpected bit of trouble with his van a you and 4 mates lend him 100 quid to get it to be repaired (and he write you all an IOU) then hopefully he'll soon be back earning.

And then there's the next stage.....

One is Adam Fergussons When money dies a very enlightening read, the litmus had been started around a decade earlier, slowly progressed through the and then exploded in 1923. When reading it you can see the parallels with what's happening today, although instead of the money being printed for the workers to keep there standard of living up (which failed) they are now printing to keep the bankers in business.

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What is interesting is that the central bankers seem to have a new narrative they are here to fight the crisis. It's a very good narrative although the real one is why didn't they avoid the crisis in the first place?

However no one in the press appears to want to ask that question, instead we get spoon fed what they are going to do to fight the crisis they helped create in the first place.

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One is Adam Fergussons When money dies a very enlightening read, the litmus had been started around a decade earlier, slowly progressed through the and then exploded in 1923. When reading it you can see the parallels with what's happening today, although instead of the money being printed for the workers to keep there standard of living up (which failed) they are now printing to keep the bankers in business.

Yes that's the one and worth reading if only for the German bit. Indeed there are parallels, the way things seem to happen slowly and in a 'disguised' way but I'd expect something different here but equally slow/fast. I suppose we can expect a rapid devaluation at any time....

Very slow, then very quick. Can't say I'm phychologically prepared to be honest.

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Yes that's the one and worth reading if only for the German bit. Indeed there are parallels, the way things seem to happen slowly and in a 'disguised' way but I'd expect something different here but equally slow/fast. I suppose we can expect a rapid devaluation at any time....

Very slow, then very quick. Can't say I'm phychologically prepared to be honest.

Your not confusing it with another one are you?

Dying of money

Read the full book here

Apologies if you aren't.

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From Mises' "America's great Depression" (the first one..this one has a long way to run before it has finished)

and

Written donkey's years ago.

When you listen to Schiff, you really get the sense that not only is what the central banks are doing is wrong, but the medicine needed it's 180 degrees in the opposite direction.

And so, since all western economies are like huge supertankers that take years to turn around, on top of this, it is going to need a reversal of thinking, and have people either vote or riot to bring about this change.

Assuming of course, that those voters/rioters could see this way of thinking as being the medicine needed. Short(er) term pain for long term gain... the quicker we deflate, the quicker the recovery madness can begin again.

But there's nothing to suggest that people understand this.

We are so f*****. Really.

The sheeple awakening stage is rapidly approaching where soon all fingers will be pointing at the policians and bankers who sold the lie.. shortly afterwards followed by the fingers of the politicans and bankers pointing their fingers to towards some newly created enemies.. Iran (oil priced in euro's uncle sam ? can't have that.. China (dumping our bonds - economic warfare eh?).

Some serious distractions for the masses will be needed in the coming years, that's for sure. The enemy of the people must be seen to be outside, not inside.

I don't buy this idea that people can't see that medicine is needed. It's when they have to take the medicine and the bankers don't that people get pissed off.

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"They" love to start a war with Iran (China) but its too late for that now, no chance of another "False Flag" attack either........i think they just print & try to manage the poplutions.............i wonder how qucik & how far the £/$ will fall?

Mike

The $ is essential to those nations who sell to the US. In fact, most of the world is dependent on US buying their stuff, including the Arabs. We are the US' largest single nation trading partner and imagine if the $ collapsed and we tried to sell them our stuff at two or three times the price they can make it themselves.

The war starters in the last century have all been non-Anglo nations such as Russia (invasion of the Western states in 1915 and invasion and military occupation of most of E Europe in 1945), Germany (1914 and again in 1939), Japan (in the 1930's when they invaded China, Korea and eventually bombed Hawaii), Argentina (when they invaded the Falklands), Iraq (when they invaded Kuwait and attempted to invade Iran setting off the long border war), France (when they invaded Viet Nam).

Edited by Realistbear

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I think I am going to side with Prechter on this one which I hope is the outcome Ie deflation rather than hyperinflation

I think in a debt based money syetm like ours that the central bansk cannot create real inflation as they cannot force people to borrow

all the stimulus, QE didn't really end up in the real economy but only in the banks abilities to speculate on the stock markets

sure this pushes asset classes up for a while but does nothing for the overall money supply and hence deflation will have its day once the sugar high wears off

If they print too much then the bond markets will ask for higher interest ratews which will also be defaltionary so in the end deflation wins

I hope I ma right < I exepct a c rash this month

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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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