Bank Inflation Report : Q E 2 Likely

[Realistbear]

http://uk.finance.yahoo.com/news/bank-inflation-report-to-leave-policy-options-open-reuters_molt-0e17ac39a5b6.html?x=0

LONDON (

Reuters

) - The Bank of England is likely to signal further quantitative easing remains possible when it publishes its quarterly forecasts on Wednesday.

Markets are still betting the central bank may eventually expand its 200 billion pound asset purchase programme after a similar move by the U.S. Federal Reserve last week, although recently firm data have reduced expectations of such a move.

Policymakers may be reluctant to unsettle investors by ruling out any additional quantitative easing because they will want to see how 81 billion pounds of government spending cuts hit activity when they start to take effect in 2011.

Not long now before Sterling finds itself back in the FOREX spotlight? Lotsa more debt to add to the £4.8Trillion we already owe:

http://www.channel4.com/programmes/britains-trillion-pound-horror-story

[Panda]

FreeTrader whats your thoughts.......................

I am interested, value your reasoning.

EG. Not me but a scenario..........

You are sitting in sunny Spain, just taking a 12 month sabatical, soaking up the warm air. You have for example a round figure of say £500k sittin in the tommy tank earning say 2.5% interesr after tax, no risk, so a grand a month in your pocket.

What would you do?

Just interested you seem to be alert. If you read this that is FREETRADER.............................

Edited November 8, 2010 by Panda

[ken_ichikawa]

They've got a printing press and they're not afraid to use it...

Printy printy.... time to apologise to Cnago and Injin?

[LittleSteroid]

damn me, more printy printy! Are they crazy? I am thinking about buying gold and silver now, just in case. Does anybody know some safe place/website to buy physical gold and silver?

[Cinzano Bianco]

http://uk.finance.yahoo.com/news/bank-inflation-report-to-leave-policy-options-open-reuters_molt-0e17ac39a5b6.html?x=0

LONDON (

Reuters

) - The Bank of England is likely to signal further quantitative easing remains possible when it publishes its quarterly forecasts on Wednesday.

Markets are still betting the central bank may eventually expand its 200 billion pound asset purchase programme after a similar move by the U.S. Federal Reserve last week, although recently firm data have reduced expectations of such a move.

Policymakers may be reluctant to unsettle investors by ruling out any additional quantitative easing because they will want to see how 81 billion pounds of government spending cuts hit activity when they start to take effect in 2011.

Not long now before Sterling finds itself back in the FOREX spotlight? Lotsa more debt to add to the £4.8Trillion we already owe:

http://www.channel4.com/programmes/britains-trillion-pound-horror-story

Dude, that's the BoE likely to signal QE2 remains possible - not that QE2 is likely. The quote you supplied says as much, and explains they just don't want to spook investors by removing the teat they are suckling. There is a story there, between the lines, but it isn't the one you are pushing. What's your VI?

[ken_ichikawa]

damn me, more printy printy! Are they crazy? I am thinking about buying gold and silver now, just in case. Does anybody know some safe place/website to buy physical gold and silver?

Tbh its no longer printy printy, its:

printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!

[Crashman Begins]

When someone predicts something 6 years in advance,

Reveals meltdowns alerts that are no where else on the net

Is correct so far & promises 100% correct guaranteed

.......Nah lets ignore him

Reminds me of Noah's ark lol

Edited November 8, 2010 by Crashman Begins

[ydbc]

The following article in Citywire suggests possibly and not probably.

http://www.citywire.co.uk/money/ask-citywire-quantitative-easing-part-ii/a447558?re=11736&ea=255451

[Sledgehead]

Dude, that's the BoE likely to signal QE2 remains possible - not that QE2 is likely. The quote you supplied says as much, and explains they just don't want to spook investors by removing the teat they are suckling. There is a story there, between the lines, but it isn't the one you are pushing. What's your VI?

he's long the dollar.

[Sledgehead]

Reminds me of Noah's ark lol

Why compare the prognostications of cgnao to a fictional charcater? You might think it's a great example. Leaves anyone but fundamentalist christians cold.

[davedavies]

Why would they print?

Inflation is above target. Growth is healthy.

Oh, but of course, just because their pensions are inflation-linked it means they want to print to oblivion.

Why would they want to destroy the economy to spite everyonre else just so their pension is OK while everyone suffers? Not quite heard much reason from the conspiracists on this one

[interestrateripoff]

They've got a printing press and they're not afraid to use it...

Printy printy.... time to apologise to Cnago and Injin?

The magic printing press creating value where ever it is used.

[Fairies Wear Boots]

Why would they print?

Inflation is above target. Growth is healthy.

Oh, but of course, just because their pensions are inflation-linked it means they want to print to oblivion.

Why would they want to destroy the economy to spite everyonre else just so their pension is OK while everyone suffers? Not quite heard much reason from the conspiracists on this one

Some people think they will not launch QE2, citing that everything is OK with the economy. But surely if house prices start sliding like we want them to, then ... well ... Printy Printy! I note they haven't ruled it out.

[ken_ichikawa]

Why would they want to destroy the economy to spite everyonre else just so their pension is OK while everyone suffers?

In hyperinflation everybody loses the key is to lose less than everybody else. This in effect magnifies your wealth massively if you lose less than everybody else. The wealthy elite are all hedged to the nines and in hyperinflation they will lose barely anything.

Also when the reset occurs to 'stop' this hyperinflation absolutely everything has property of HMRC/HSBC on it and they can go rentier on us for ever and ever.

[Sledgehead]

The wealthy elite are all hedged to the nines and in hyperinflation they will lose barely anything.

Whilst I tend to think this more likely than not, I am minded that a deflationist on this very board claimed "the wealthy" were hedged against deflation.

You might say the definition of hedging means they are prepared for a variety of situations, but we know that is simply impossible.

I just wish people would stop using the rich as an endorsement for their chosen view.

Edited November 8, 2010 by Sledgehead

[tallguy]

In hyperinflation everybody loses the key is to lose less than everybody else. This in effect magnifies your wealth massively if you lose less than everybody else. The wealthy elite are all hedged to the nines and in hyperinflation they will lose barely anything.

Also when the reset occurs to 'stop' this hyperinflation absolutely everything has property of HMRC/HSBC on it and they can go rentier on us for ever and ever.

In a hyperinflationary scenareo, those holding the actual physical means of production (land and other raw resources) are absolutely fine, thank you very much. They just get paid more for their stuff as a compensation for money being worth less

Hyperinflation changes nothing for them. The uber-rich in other words.

As for the rest of us who have to rely on wothless paper promises paid to us once a month in return for selling most of our lives away?

Obviously, we're f*cked

In the alternative hyper-defaltionary scenareo those holding the actual physical means of production (land and other raw resources) are absolutely fine, thank you very much. althought hey get paid less for their stuff, this doens't matter since money becomes worth far more.

Hyper-deflation changes nothing for them. The uber-rich in other words.

As for the rest of us who have to rely on a massively reduced supply of paper promises paid to us once a month in return for selling most of our lives away?

Obviously, we're f*cked

It's funny how the rest of us are f*cked either way innit....

Edited November 8, 2010 by tallguy

[non frog]

Tbh its no longer printy printy, its:

printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!printy printy!

Thanks goodness that's rubbish and QE doesn't print money.

[richc]

I'm wondering if the inflation forecast will include the already announced increases in university tuition, or if the BoE will fudge again like the increase in VAT and "forget" to include almost certain price increases in their "forecast". The gov't published plans this month to more than double university fees in England in October 2012. As the education component is weighted at 2% of total costs in the CPI, and English university fees probably make up half the component, a 100% increase in tuition will translate into almost a full percentage increase in CPI. Leaving everything else aside, that should keep CPI above target until almost 2014 -- i.e. CPI will have been consistently above target for 9 years at that point, but the BoE is still worried about deflation.

[Sour Mash]

In hyperinflation everybody loses the key is to lose less than everybody else.

Not in the case of the Weimar inflation, history shows that there were clear winners and losers in the time of hyperinflation.

The middle class/savers/retirees were wiped out totally. Workers suffered a massive drop in living standards. Those were the losers.

However, those in the business of exporting did very well as did those whose wealth was in assets, especially productive land. Farmers had a fantastic time too ... Well, before starving mobs from the cities raided their farms for food that is.

Anyone with first access to the fount of newly printed cash (i.e. bankers and their friends and associates) was in a great position to acquire more wealth before the additional inflating effect of the new cash took hold - as long as people were still accepting the rapidly debasing currency of course.

[Sour Mash]

In the alternative hyper-defaltionary scenareo those holding the actual physical means of production (land and other raw resources) are absolutely fine, thank you very much. althought hey get paid less for their stuff, this doens't matter since money becomes worth far more.

It certainly does matter if, like most business, they used debt to buy their means of production. In this case, servicing the debt becomes very difficult as the debt does not deflate. It also screws the banks whose asset base is worth less, with increased creditor defaults but whose cash liabilities remain the same. Thanks to leverage it doesn't take much to make them insolvent.

It's true that the rich are in a good position to survive either of the extreme scenarios. This of course depends on them having enough sense and foresight to position their assets correctly to protect themselves in advance of the worst happening.

Or of course, knowing what the govt/central bank plan of future action is. Even better if you can TELL the so called authority figures what to do. How do you think a certain golden sacked bank was able to make profits on every day of a trading quarter?

[tallguy]

It certainly does matter if, like most business, they used debt to buy their means of production. In this case, servicing the debt becomes very difficult as the debt does not deflate. It also screws the banks whose asset base is worth less, with increased creditor defaults but whose cash liabilities remain the same. Thanks to leverage it doesn't take much to make them insolvent.

It's true that the rich are in a good position to survive either of the extreme scenarios. This of course depends on them having enough sense and foresight to position their assets correctly to protect themselves in advance of the worst happening.

Or of course, knowing what the govt/central bank plan of future action is. Even better if you can TELL the so called authority figures what to do. How do you think a certain golden sacked bank was able to make profits on every day of a trading quarter?

If they bought those resources using debt then, by definition, they don't own them.

I'm not referring to the illusory "wealth" of debt.

I'm talking about real wealth. The kind of wealth where "money" is just a temporary means of transferring exchange-value from one asset to another.

Edited November 10, 2010 by tallguy

[_w_]

The middle class/savers/retirees were wiped out totally. Workers suffered a massive drop in living standards. Those were the losers.

I would have thought workers would be OK as their wages would follow inflation, partially and with a lag but the hit would not be as bad? Did real wages seriously fall during Weimar?

[Timm]

In hyperinflation everybody loses the key is to lose less than everybody else. This in effect magnifies your wealth massively if you lose less than everybody else. The wealthy elite are all hedged to the nines and in hyperinflation they will lose barely anything.

Also when the reset occurs to 'stop' this hyperinflation absolutely everything has property of HMRC/HSBC on it and they can go rentier on us for ever and ever.

Don't forget risk.

The NuWhigs seem aware of the risk of lamposts and Mm G.

Thanks goodness that's rubbish and QE doesn't print money.

Yes it does.

Are you not aware of the Base Money Multiplier?

Not in the case of the Weimar inflation, history shows that there were clear winners and losers in the time of hyperinflation.

The middle class/savers/retirees were wiped out totally. Workers suffered a massive drop in living standards. Those were the losers.

However, those in the business of exporting did very well as did those whose wealth was in assets, especially productive land. Farmers had a fantastic time too ... Well, before starving mobs from the cities raided their farms for food that is.

Anyone with first access to the fount of newly printed cash (i.e. bankers and their friends and associates) was in a great position to acquire more wealth before the additional inflating effect of the new cash took hold - as long as people were still accepting the rapidly debasing currency of course.

That'll be the bankers and the Chinese.

So what are they buying?

Edited November 10, 2010 by Timm

[Arbitrage]

Thanks goodness that's rubbish and QE doesn't print money.

You are Stephanie Flanders, and I claim my £5!

[FreeTrader]

BOE's inflation expectations have risen. CPI now expected to be above target for whole of 2011.

(August projection on top, November below).