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sceptic81

Young People And Qe

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Many here complain about young people and how they don't get it (ie they are too thick to understand basic principles of economics)

This is a thread from a young person's forum in Ireland. Some interesting opinions on the situation in the UK and the 'economcially illiterate' media here.

http://www.politics.ie/economy/152202-uk-retail-price-index-inflation-hits-5-1-a.html

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Many here complain about young people and how they don't get it (ie they are too thick to understand basic principles of economics)

This is a thread from a young person's forum in Ireland. Some interesting opinions on the situation in the UK and the 'economcially illiterate' media here.

http://www.politics.ie/economy/152202-uk-retail-price-index-inflation-hits-5-1-a.html

I like this comment about an earlier comment.

"Increase in money supply benefits the first receivers of the new money at the expense of others, the late receivers of money" Cantillon (A Kerry born economist) Essai 1750

And who would the first receivers of that new money be? Why, it is the insiders at the bank. Paid to them by the free money arbitrage that they can make on the spread between borrowing from the Bank of England, and buying Gilts. So simple instead to use that new money buy real things that benefit people. And yet instead they try and do the obnoxious thing of making rich people even richer.

Theft and Fraud. Difficult to know where one ends and the other begins.

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You said it correctly. It is called the "wealth effect". Trying to boost equities and property values so that the percieved wealth of those who own those assets incentivises them to spend, boosting the economy.

It is a complete fallacy. Its inflationary and causes a misallocation of resources. A wealthy person can only buy so much of the essential mass produced goods, the excess perceived wealth goes on conspicuous consumption and adds to asset inflation.

This sends property prices through the roof as speculators and not necessarily actual householders buy into cities and areas that are perceived to have a high yield of return.

A lot of the QE funds have gone into commodity investments for mutual and pension funds for example adding to the inflationary pressures of food and energy.

In other words, simple laws of demand and supply becomes almost irrelavant in the coalface of these markets and the prices are judged by excessive liquidity from banks via a select few speculators.

Seem to be quite on the ball over there. If it was an English based politics site it would be dominated by ranting statists quoting Guardian articles all day.

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If too much money is the problem, why don't we start burning our notes for warmth? :lol:

The quote above nails it: speculation is driving inflation. Genuine price discovery is almost impossible in our contorted market.

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  • 276 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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