Jump to content
House Price Crash Forum
Sign in to follow this  
Clueless_Academic

Charles Bean Warns Of Central Bank Intervention

Recommended Posts

Report just off BBC / newswires -

Are we heading for Inflation, Depression, Stagflation or ??

www.financialadvice.co.uk/news/ukeconomy/89775-charles-bean-warns-of-central-bank-intervention.html

Charles Bean warns of central bank intervention

Sunday 29th August 2010

Charles Bean, the deputy governor of the Bank of England, has today suggested that central banks around the world may well need to step back into the fray and prop up ailing economies. Despite the fact that central banks around the world effectively bailed out the financial sector in the early days of the worldwide recession it seems as though another bout of funding may well be required in the short to medium term.

It is no coincidence that suggestion of further central bank intervention has appeared just hours after the US government warned of a significant slowdown in economic growth. It is widely known that the US economy, even though likes of China and India for example have grown in strength and stature over the years, is still the engine room of the worldwide economy. While it is helpful to see central banks coming together when the early alarm bells begin to ring there will be much work for them to do in the short to medium term.

One of the major problems in the short term will be a downturn in investor and consumer confidence around the world which in itself could prove very damaging for the worldwide economy.

Share this post


Link to post
Share on other sites

Report just off BBC / newswires -

Are we heading for Inflation, Depression, Stagflation or ??

www.financialadvice.co.uk/news/ukeconomy/89775-charles-bean-warns-of-central-bank-intervention.html

Charles Bean warns of central bank intervention

Sunday 29th August 2010

Charles Bean, the deputy governor of the Bank of England, has today suggested that central banks around the world may well need to step back into the fray and prop up ailing economies. Despite the fact that central banks around the world effectively bailed out the financial sector in the early days of the worldwide recession it seems as though another bout of funding may well be required in the short to medium term.

It is no coincidence that suggestion of further central bank intervention has appeared just hours after the US government warned of a significant slowdown in economic growth. It is widely known that the US economy, even though likes of China and India for example have grown in strength and stature over the years, is still the engine room of the worldwide economy. While it is helpful to see central banks coming together when the early alarm bells begin to ring there will be much work for them to do in the short to medium term.

One of the major problems in the short term will be a downturn in investor and consumer confidence around the world which in itself could prove very damaging for the worldwide economy.

Oh here we go, Bailout 2....looosen up a bit of borrowing capacity by imposing austerity and tax rises on poor old Jo public then utilise it to borrow yet more money to give to the b*stard bankers. Pathetic, robbing, theiving, banking b*strads. Please, please, please lets have a revoution, dismantle the City brick by brick and hang its occupants from lamposts.

Share this post


Link to post
Share on other sites

Acid?

Thye have no answer except more pump prime printing, because a debt deflation of leveraged assets is underway and they are desperate to stop it. On the other hand, their poisonlicy, will bring with it massive inflation on everything else and destroy savings. It has already begun. The debts are too large to pay back, so they have to be inflated away, both in Europe and the USA.

Edited by plummet expert

Share this post


Link to post
Share on other sites

money...means of exchange....apparentyl, making more means of exchange available will solve the problem of lack of wealth.

I thought you needed wealth to exchange for some other wealth...that was the economy. moving IOUs seems so pointless an exercise if that is ALL they can think of.

ho hum

Share this post


Link to post
Share on other sites

Print some more money and buy some more of each others debt.

Didn't work before, but I'm sure this time it will be just the job.

I have had to give up caring, because, as my old boss would have said, "I'm so angry I've got f@cking chest pain".

Share this post


Link to post
Share on other sites

Presumably by 'normal times' he means prior to the closure of the gold window by Nixon (i.e. 1970 ish)?

he means 2007, almost certainly.

Share this post


Link to post
Share on other sites

Thye have no answer except more pump prime printing, because a debt deflation of leveraged assets is underway and they are desperate to stop it. On the other hand, their poisonlicy, will bring with it massive inflation on everything else and destroy savings. It has already begun. The debts are too large to pay back, so they have to be inflated away, both in Europe and the USA.

IYes, I guess governments in US/EU will need to come to grips with their soverign debt issues by;

1. Increasing taxation & cutting public expenditure

2. debase currency by QE - hence bring inflation to the equation thus bringing down the debt mountain over time - i.e. inflate it away.

End result is less disposable income + drop in living standards & savings wipeout for the prudent ones!!

Share this post


Link to post
Share on other sites

money...means of exchange....apparentyl, making more means of exchange available will solve the problem of lack of wealth.

I thought you needed wealth to exchange for some other wealth...that was the economy. moving IOUs seems so pointless an exercise if that is ALL they can think of.

ho hum

Land, Labour, Capital, and ENTERPRISE - that's all you need to create a successful Nation !

As to Consumption - then 'Rational Economic Man' died in the 1950's to be replaced by a Consumption Based ethos drived by people's latent desires; Experiential Consumption, Hedonic Consumption, and Conspicuous Consumption.

Hence, we all became actors on the stage of life, using consumption as a prop (means) of expressing ourselves.

Unfortunately, all our desires are insatiable due to constant media stimulation - what a paradox; an illusion of happiness sustained by consumption which is now finite.

I guess at some future point historians will look back on this period and contrast if the virtues of Production vs Consumption were better in order to build a viable Nation.

Which would win out - what is the panacea -??

Share this post


Link to post
Share on other sites

IYes, I guess governments in US/EU will need to come to grips with their soverign debt issues by;

1. Increasing taxation & cutting public expenditure

2. debase currency by QE - hence bring inflation to the equation thus bringing down the debt mountain over time - i.e. inflate it away.

End result is less disposable income + drop in living standards & savings wipeout for the prudent ones!!

just wondering how inflation reduces the debt mountain.?

You see, things and services will cost more, meaning that MORE debt is needed to pay for things...just a thought.

Share this post


Link to post
Share on other sites

just wondering how inflation reduces the debt mountain.?

You see, things and services will cost more, meaning that MORE debt is needed to pay for things...just a thought.

The problem they have is simple - f you can stop issuing money as debt for a good reason, you'll soon be doing it for a bad one.

And then they are obsolete, kaput, gone.

Share this post


Link to post
Share on other sites

The BoE on their website helpfully explain that the money supply has to keep growing because of economic growth and inflation.

(of course that means more debt)

IC, then why are they thinking they can do it the other way round....add money supply and you get growth??

Share this post


Link to post
Share on other sites

The problem they have is simple - f you can stop issuing money as debt for a good reason, you'll soon be doing it for a bad one.

And then they are obsolete, kaput, gone.

nonsense!

no bankers were harmed during the making of this bailout!

:lol:

Share this post


Link to post
Share on other sites

QE to infinity.

For anyone who remains fast asleep: if your wealth is tied up in cash and/or gilts then you had better wake up quick otherwise that giant dildo that has monetary collapse written on it is going to sting like hell.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 145 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.