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House Price Crash Forum

2008 Again, Money Printing May Be Required Soon

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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.


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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.

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