Jump to content
House Price Crash Forum
Sign in to follow this  
Peter Hun

2008 Again, Money Printing May Be Required Soon

Recommended Posts

In speaking to clients and traders yesterday it’s clear that there is extremely low appetite to take fresh peripheral or financial (especially sub) exposure. There are an increasing number of investors who will not touch these assets at any price for now given all the uncertainty.

That’s the worrying sign for those that think that a lot of these problems are overstated. You can have a well articulated view on why xx or yy is solvent but if the buyers have completely dried up because of all the fear and uncertainty then micro analysis becomes secondary. For this to all end happily we need new buyers of the mountain of debt that is step by step becoming friendless in the deleveraging trade. Finding these new buyers is becoming a difficult job and maybe we’re fast forwarding towards more sizeable money printing programs.

http://ftalphaville.ft.com/blog/2010/11/30/420421/barge-pole-european-debt-no-thank-you/

Share this post


Link to post
Share on other sites

The run on the sovereign is now afoot, the last but one step to total financial collapse.

As they say, printing money is next, which will only solve the problem by causing inflation. There is nothing then that can stop the collapse of fiat currency holding value.

What will the UK do? Masters of our own currency, we can in theory choose to keep the pound as our currency, but that means running a balanced budget. Can the government make the cuts necessary to do that?

The news we had yesterday, about spending all of that money from the growth we didnt expect, rather than using it to pare down the deficit, suggests that the UK too, wishes to join in the great western fiat currency collapse.

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.

  • 277 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.