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Bank's Posen Says More Qe Needed

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http://uk.finance.yahoo.com/news/bank-s-posen-says-more-qe-needed-to-avoid-japan-style-slump-reuters_molt-ad355b015da4.html?x=0

Bank's Posen says more QE needed to avoid Japan-style slump

14:07, Tuesday 28 September 2010

LONDON (Reuters) - The Bank of England should start pumping more money into the economy in order to prevent Britain falling into the same kind of slump Japan did in the 1990s, Monetary Policy Committee member Adam Posen said on Tuesday.

Sterling down c. 100bp on this news. Looks like we are going to beat the Fed to it.

Problem is, it will be a drop in t' bucket and will not beat deflation which cometh like a horde of Mongols.

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Dont know about everyone else but getting sick of these so called BOE experts the whole country says NO but they do whatever lines their pockets via the banks.

For the sake of our long term future get rid of these muppets before its too late :angry: .

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£ = Euro 1.16936

Down vs. Euro--I had better get my Euros quick as I have a holiday on the Costa Blanca coming up in November. :o

I was looking for a Euro sell signal to offload a few.

Looks like I have it.

(Only kidding RB).

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Will they announce the plan as part of the austerity budget to soften the blow as an overall loose financial tough fiscal strategy ?

I suggest you seriously consider shifting money. Remember the £ lost about 1/3 last time. There is no guarantee that the Americans will get theirs through leaving us as the printing kings of the globe.

See - I knew we were still best at something.

Everything setup just need to pull the trigger. The £ starting falling last time before QE was introduced. So a 1/3 was'nt all down to QE, i could see the £ losing 10% on any new QE.

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The race to the bottom continues, currency debasement is the name of the game to generate all important growth.....

Still it's a proven policy that works, printing funny money always works. When can the people print theirs?

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Sovereign debt fears and bond market shakeup in the EZ is powering the Euro to new highs. If Spain and Greece start to join Ireland and Portugal in the wobble who knows how high the Euro may go.

http://uk.finance.yahoo.com/news/europe-navigates-between-alarm-hope-on-economy-afp-2ac232c2415a.html?x=0

Nathaniel Harrison, 16:16, Tuesday 28 September 2010

Europe confronted ominous new bond market pressures on Tuesday and braced for massive public protests against spending cuts, dampening the economic landscape
despite signs of strength in Germany and Britain.

Stock exchanges left little doubt that investors, in spite of evidence that Europe is recovering from its worst downturn since the Second World War, remain haunted by the spectre of debt crises in parts of the eurozone.

Share prices fell across Europe, with markets reacting with
alarm to record bond market yields in Ireland and Portugal, just two of several eurozone countries grappling with huge public deficits and debt.

"Sovereign (LSE: SOGP.L - news)
debt worries
are once again adding to traders' woes," said IG Index analyst Ben Critchley.

European governments must also contend with a euro that is steadily appeciating
against the dollar associated with lower US interest rates, threatening to drive down European export earnings

The alarm in the EZ markets is having a powerful contrarian effect on the FX as the bad news is a buy signal to store up Euros whcih is now the store house of value since the gold scare began yesterday.

Sterling headed down to 1.15 soon: 1.16403

Edited by Realistbear

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The race to the bottom continues, currency debasement is the name of the game to generate all important growth.....

Still it's a proven policy that works, printing funny money always works. When can the people print theirs?

Glad I bought that house now.

For a horrible minute it looked like this government wouldnt print.

:lol:

They always print.

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Sterling down c. 100bp on this news. Looks like we are going to beat the Fed to it.

Problem is, it will be a drop in t' bucket and will not beat deflation which cometh like a horde of Mongols.

Excellent, I'm so pleased these potheads are in control of the nations wealth.

Like it or not the only credible currency in town is Gold.

Edited by MrFlibble

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Sod this for a game of screw the sterling.

I am off to buy gold, copper and silver. My hard saved £20k has been abused enough!

Shit country deserves the inflationary shafting it is about to get.

If only the general public were not so morosely naive about this.

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Excellent, I'm so pleased these potheads are in control of the nations wealth.

Like it or not the only credible currency in town is Gold.

The market is in a powerfuol headless chicken mode. Looking at the FX charts today and its Mr. Toad's Wild Ride. Posen's QE remarks sent the pound to a 2 day high after a sharp sell off. The market reacted to the news as negative then decided QE was good news for the pound and it soared.

Bad news for the EZ as the Soveriegn Debt crisis remerges and the Euro takes off. Then some fool says Ireland is in trouble because their deficit is 25% of GDP which is apparently critical whereas we are "resilient" with the deficit at 62% of GDP.

Little wonder everyone is buying gold.

$1374

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The alarm in the EZ markets is having a powerful contrarian effect on the FX as the bad news is a buy signal to store up Euros whcih is now the store house of value since the gold scare began yesterday.

What "gold scare" began yesterday? Gold has punched convincingly through the $1,300 mark and is not surprisingly up in Sterling.

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Its partly because of our penchant for importing flashy German cars, our economy is going Japanese. Who won the bloody war?

Oh, and our biscuits are going Chinese too. Next it'll be the good old British cup of tea. Is nothing sacred?

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Dont know about everyone else but getting sick of these so called BOE experts the whole country says NO but they do whatever lines their pockets via the banks.

For the sake of our long term future get rid of these muppets before its too late :angry: .

Yup. The government couldn't wait to scrap the FSA and put these folk in charge. As Oliver Hardy might say "that's another fine mess you've gotten me into"

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Guest spp

Japanese?? If only things were going to be that easy.

Good short term bottom call on Gold again today RB. How many fiat paper £'s did you exchange?

I wonder how many people have been misinformed with all the BS you've spouted over the years...time to give up on the gold threads?

Currencies are collapsing...in real time!

As the old saying goes, "it's all over except for the crying".

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Japanese?? If only things were going to be that easy.

Good short term bottom call on Gold again today RB. How many fiat paper £'s did you exchange?

I wonder how many people have been misinformed with all the BS you've spouted over the years...time to give up on the gold threads?

Currencies are collapsing...in real time!

As the old saying goes, "it's all over except for the crying".

I think one or two did well on my Euro and Sterling call made last Crimbo. Beat your forecasts IIRC? I bet you followed my move into US treasuries too and made out like a bandit over the last 12 months? ;)

If all currencies collapse together relative stasis will apply. There is only a crisis when one currency depreciates (or appreciates) while others remain static. Sellers can only sell for what the market will bear and the value of a currency depends on purchasing power.

There is no doubt that gold is in a frenzy of buying as the headless chicken economy persists in its contrarian turmoil. Gold is a opne way bet until the herd decide it isn't. And the one who wins is the one who times the top.

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Where to move the GBP to?

US will likely follow us. Euro is very shaky with Ireland and Portugal ready to go pop.

Stocks? Swiss? JPY?

Well this is splendid news indeed.

As for where to move your GBP to, may I suggest you follow the yellow-bricked road...

P.S. Realist Bear, last time we spoke I believe you were having a bit of a Winston Smith (1984) revelation moment regarding gold. Seeing as it's just ploughed through $1300 dollars to £1307.54 (I believe last time we spoke a few weeks back it was around $1180) can I ask if your view has softened with regard to it's lack of value (both as a wealth preserver and a spectulative dynamo) in the current crisis?

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Where to move the GBP to?

US will likely follow us. Euro is very shaky with Ireland and Portugal ready to go pop.

Stocks? Swiss? JPY?

Sterling is as good as gold at the moment because of Posen's QE threat, our unemployment growth and faltering house prices.* Remember, we are in a powerful contrarian vortex where bad news is a buy signal. The sovereign debt crisis that is re-emerging has been a strong signal to buy Euros today.

In the long run it will be the last man standing. I am still staying away from the Euro and especially Sterling despite the pound rising on every bit of bad news.

*FOREX reacted positively on the LR data this morning even though it is 6 months out of date. Strangely, the pound lost 100bp earlier on the QE threat which was later interpreted as a buy signal for sterling as QE means the BoE have it all under control--on the other hand :blink::blink:

Edited by Realistbear

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Well this is splendid news indeed.

As for where to move your GBP to, may I suggest you follow the yellow-bricked road...

P.S. Realist Bear, last time we spoke I believe you were having a bit of a Winston Smith (1984) revelation moment regarding gold. Seeing as it's just ploughed through $1300 dollars to £1307.54 (I believe last time we spoke a few weeks back it was around $1180) can I ask if your view has softened with regard to it's lack of value (both as a wealth preserver and a spectulative dynamo) in the current crisis?

GOld is a huge emotional buy now and I believe it will peak at around $1374

All the newspapers are saying its a sure thing so everyone is buying. I read somewhere that something like 8,000 tons a day are being bought plus billions in gold ETFs. Heaven help those who don't get out when it turns as there will not be enough gold to fill the sell orders. Its a mega PONZI but all Ponzis make big money if you can time it right. I won't go near it--have been ultra cautious since 2005 with most of my STR gambling on US treasuries which have returned about 13% YTD (PIMCO total bond fund).

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Guest spp

There is no doubt that gold is in a frenzy of buying as the headless chicken economy persists in its contrarian turmoil. Gold is a opne way bet until the herd decide it isn't. And the one who wins is the one who times the top.

:lol:

A "flash crash" would be great...try getting the physical! :rolleyes:

I won't go near it--have been ultra cautious since 2005 with most of my STR gambling on US treasuries which have returned about 13% YTD (PIMCO total bond fund).

Gold was around $450 back then...well done you!

Edited by spp

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  • 142 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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