Jump to content
House Price Crash Forum
Pick It Down

Print Money And Raise Rates.

Recommended Posts

Been seeing this suggestion in a number of threads recently. Seems to "make sense" in that it could sort out the deficit at the same time as stopping the unfair penalisation of savers. But what would happen to the currency?

Has this ever been tried anywhere? I expect in the short-term they (central bankers) would be seen to know enough that the effect would be muted, ie they know enough in order to make the two actions counter-balance each other. But would they really?

Would you prefer to be in gold or paper when the paper is being printed but you could get a 5% YoY return with it?

Share this post


Link to post
Share on other sites

Been seeing this suggestion in a number of threads recently. Seems to "make sense" in that it could sort out the deficit at the same time as stopping the unfair penalisation of savers. But what would happen to the currency?

Has this ever been tried anywhere? I expect in the short-term they (central bankers) would be seen to know enough that the effect would be muted, ie they know enough in order to make the two actions counter-balance each other. But would they really?

Would you prefer to be in gold or paper when the paper is being printed but you could get a 5% YoY return with it?

If they raised rates they would have to print over and above the extra debt interest incurred to pay down the debt faster (I'm talking about the effect on govt. debt here) otherwise you're just standing still, the bond market would stick to fingers up to that and the currency would take a kicking.

Even if they raised rates and only printed to stand still (if they could somehow judge that - which they can't) savers wouldn't be better off and would still be losing money in real terms.

You can't get something for nothing.

Gold all the way, but then you knew I'd say that.

Edited by General Congreve

Share this post


Link to post
Share on other sites

If they raised rates they would have to print over and above the extra debt interest incurred to pay down the debt faster (I'm talking about the effect on govt. debt here) otherwise you're just standing still, the bond market would stick to fingers up to that and the currency would take a kicking.

Even if they raised rates and only printed to stand still (if they could somehow judge that - which they can't) savers wouldn't be better off and would still be losing money in real terms.

You can't get something for nothing.

Gold all the way, but then you knew I'd say that.

You forget that by printing they can depress bond rates?

I'm not actually in gold, but it is an interesting alternative.

Share this post


Link to post
Share on other sites

Been seeing this suggestion in a number of threads recently. Seems to "make sense" in that it could sort out the deficit at the same time as stopping the unfair penalisation of savers. But what would happen to the currency?

Has this ever been tried anywhere? I expect in the short-term they (central bankers) would be seen to know enough that the effect would be muted, ie they know enough in order to make the two actions counter-balance each other. But would they really?

Would you prefer to be in gold or paper when the paper is being printed but you could get a 5% YoY return with it?

I've been posting they will raise rates AND print. I used to think they were complimentary however I've changed my mind after reading this:

The Bank of England WILL RAISE INTEREST RATES AND PRINT MONEY - This is contrary to anything you will hear anywhere else as the consensus view is that QE and Zero interest rates are complimentary, they will NOT be as we move forward! Because the Bank of England Will have no choice but to attempt to DEFLATE PRICES whilst INFLATING the Economy to achieve this it MUST RAISE Short-term Interest rates WHILST KEEPING LONG-TERM interest rates low. To achieve this the Bank of England needs to BUY Bonds and Stocks whilst forcing demand for consumption and wage increases lower. This WILL become the consensus view AFTER the FACT, perhaps in 6 months time ? Just as the mainstream press is ONLY NOW, 9 months on, starting to slowly wake up to the Inflation Mega-trend with the likes of the FT only coming to conclusions on the Bank of England Inflation targeting very recently, something that I came to several years ago!

http://www.marketora...ticle22199.html

I don't know whether he is selective with what past predictions he points out were right but I have it in mind that he is very good.

Edited by Redhat Sly

Share this post


Link to post
Share on other sites

I've been posting they will raise rates AND print. I used to think they were complimentary however I've changed my mind after reading this:

I don't know whether he is selective with what past predictions he points out were right but I have it in mind that he is very good.

Yeah, Nadeem seems to be right on the money most of the time.

Having said that, what he says contradicts my first post. Personally I think the level of government debt is so high and the global economy in such a bad place, that they're damned whatever they do, things are going to get nasty and there's no easy way out.

Edited by General Congreve

Share this post


Link to post
Share on other sites

"Bank of England Will have no choice but to attempt to DEFLATE PRICES whilst INFLATING the Economy"

They may want to reduce prices whilst printing but they countries we buy goods from will not go along with this.

I wonder if they have just realised that the consequence of printing is rising prices. Give them a nobel for economics.

They will not get what they want.

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...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • 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.