TheCountOfNowhere Posted March 15, 2011 Share Posted March 15, 2011 The first round of QE money looks like it had the desired effect on house prices, i.e. stopped them plummeting. The resulting inflation is killing the rest of us. However, it wont stop them doing it again if they need to. So, if they print again, will you throw in the towel and buy ? Quote Link to comment Share on other sites More sharing options...
gravity always wins Posted March 15, 2011 Share Posted March 15, 2011 Yes.... I shall buy more gold. TBH I don't give a sh*t about house prices in the UK they won't go up in real terms for a decade. I don't really look at house prices in nominal terms anymore in my world we have been in a housing crash for years now! Quote Link to comment Share on other sites More sharing options...
Cozza Posted March 15, 2011 Share Posted March 15, 2011 The first round of QE money looks like it had the desired effect on house prices, i.e. stopped them plummeting. The resulting inflation is killing the rest of us. However, it wont stop them doing it again if they need to. So, if they print again, will you throw in the towel and buy ? Nope. The UK towel is going to be thrown in no matter what happens. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted March 15, 2011 Share Posted March 15, 2011 The first round of QE money looks like it had the desired effect on house prices, i.e. stopped them plummeting. The resulting inflation is killing the rest of us. However, it wont stop them doing it again if they need to. So, if they print again, will you throw in the towel and buy ? No way. They are only printing in a vain attempt at staving off deflation. Quote Link to comment Share on other sites More sharing options...
Pezerinno Posted March 15, 2011 Share Posted March 15, 2011 Like most people I don't actually have a choice; I can't afford the bottom run terrace on a median wage. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted March 15, 2011 Author Share Posted March 15, 2011 Like most people I don't actually have a choice; I can't afford the bottom run terrace on a median wage. Which is a sad sorry state of affairs, ultimately this has to be redressed. Quote Link to comment Share on other sites More sharing options...
campervanman Posted March 15, 2011 Share Posted March 15, 2011 The first round of QE money looks like it had the desired effect on house prices, i.e. stopped them plummeting. The resulting inflation is killing the rest of us. However, it wont stop them doing it again if they need to. So, if they print again, will you throw in the towel and buy ? Probably not. I'll probably invest in a Spanish property as if i'm going to invest in b+m in an economy thats going down the toilet, i'd rather do it where the sun shines and people still smile despite it all.. Quote Link to comment Share on other sites More sharing options...
scrappycocco Posted March 15, 2011 Share Posted March 15, 2011 When my savings are finished I'll stop working and claim housing benefit etc go down with the ship or hopefully the scumbags and the bank of mum and dad crew will keep us on a steady course . I see no benefit to working with rising prices if I can't save at a decent interest rate for the future and afford a place to live with a reasonable level of debt. I'm sure the lucky ones will be selling up and leaving for greener pastures but I've no other place to go. Quote Link to comment Share on other sites More sharing options...
Pezerinno Posted March 15, 2011 Share Posted March 15, 2011 Which is a sad sorry state of affairs, ultimately this has to be redressed. I assume it will at some stage; we can't all live in £1m terraces with multi generation mortgages (can we?). Anyway I'm happy with renting; although rental prices could do with being lower. Quote Link to comment Share on other sites More sharing options...
BobBobson Posted March 15, 2011 Share Posted March 15, 2011 (edited) No way. They are only printing in a vain attempt at staving off deflation. I wouldn't exactly call it a vain attempt, if they keeping adding M0 money to the overpool of M0, then they succesfully 'inflate' the money supply and the bobs in your pocket become worth less and less. 'Deflation' or more accurately 'price contraction', caused by hyper-inflated property prices being forced to return to a more unmanipulated market value, due to the lack off/destruction of credit, is another matter. but in my humble opinion, so much is riding on such a nominal price deflation, not occurring, that the financial system will pressure the already lapdog governments of the world, into printing more and more money to prevent such a scenario which would surely destroy the balance sheets ultimately of all financial insitutions. My money is on all the debts being systematically hyper-inflated away. This will mean nominally increasing prices (as opposed to decreasing prices) across the board, whilst the value of our currencies decrease much more rapidly than our ability to accumulate more of it (nominally) will increase, i.e. rises in wages. I assume it will at some stage; we can't all live in £1m terraces with multi generation mortgages (can we?). Anyway I'm happy with renting; although rental prices could do with being lower. Yes it will be resolved alright. Those who cant live in 1 million pound terraces with multi-generational mortgages get to live hand to mouth, as worthless paupers whom the state put to work in exchange for soup and shelter. Those paupers with more ambition about them, will still be able to sample the 'high life' by selling the odd organ that they dont really need. Edited March 15, 2011 by Retardstic Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted March 15, 2011 Share Posted March 15, 2011 I wouldn't exactly call it a vain attempt, if they keeping adding M0 money to the overpool of M0, then they succesfully 'inflate' the money supply and the bobs in your pocket become worth less and less. 'Deflation' or more accurately 'price contraction', caused by hyper-inflated property prices being forced to return to a more unmanipulated market value, due to the lack off/destruction of credit, is another matter. but in my humble opinion, so much is riding on such a nominal price deflation, not occurring, that the financial system will pressure the already lapdog governments of the world, into printing more and more money to prevent such a scenario which would surely destroy the balance sheets ultimately of all financial insitutions. My money is on all the debts being systematically hyper-inflated away. This will mean nominally increasing prices (as opposed to decreasing prices) across the board, whilst the value of our currencies decrease much more rapidly than our ability to accumulate more of it (nominally) will increase, i.e. rises in wages. Yes it will be resolved alright. Those who cant live in 1 million pound terraces with multi-generational mortgages get to live hand to mouth, as worthless paupers whom the state put to work in exchange for soup and shelter. Those paupers with more ambition about them, will still be able to sample the 'high life' by selling the odd organ that they dont really need. You're wrong, you're totally wrong in this.... Here is what you should have said: Yes it will be resolved alright. Those who cant live in 50 quintillion pound terraces with multi millenia mortgages get to be conscripted for cannon fodder, as worthless paupers whom the state conscript and send to die. Those paupers with more ambition about them, will still be able to sample the 'high life' by selling the odd organ that they dont really need. Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted March 15, 2011 Share Posted March 15, 2011 Yes.... I shall buy more gold. Which will get seized, the people you buy gold from will have records, and under the smallest threat they will reveal their customers. The anti terrorism squad will come round and simply demand it if you refuse they'll torture it out of you. Or torture your children or your wife to get you to tell them where your gold is stashed. Quote Link to comment Share on other sites More sharing options...
Deckard Posted March 15, 2011 Share Posted March 15, 2011 (edited) Which will get seized, the people you buy gold from will have records, and under the smallest threat they will reveal their customers. No need for threats. They'll be only too happy to disclose details of former buyers, in exchange for a paper bribe. How ironic Edited March 15, 2011 by Greener Pastures Quote Link to comment Share on other sites More sharing options...
200p Posted March 15, 2011 Share Posted March 15, 2011 I have been a quiet supporter of silver. I suggest everyone go out and buy 1Kg and tuck it away for hyperninflation insurance. It is less likely to be confiscated as it is considered a industrial metal; its monetary use, long forgotten. It is still below 1980 prices. Imagine you could buy a house at 1980 prices today! --- The Westerklief Silverhoard was the first evidence that Vikingen appreciated this as well, and more than that, decided to permanently settle on Wieringen. The silver hoard, containing Carolingian and Arab coins, bracelets and silver ingots, was probably buried in a turned cookingpot by a Danish viking in the ninth century. Amateur archeologists found the hoard with help of metal detectors. aldetector. In total silver objects and coins with a combined weight of 1.7 kgs were found, most of this still in the pot they were originally buried in. For a detailed description of the hoard, see this separate page. The value of the silver hoard was large, even in those days. The silver would buy you a large farm, with lifestock and serfs. It is hard to make any concrete statements regarding the origin of the treasure. We know quite precisely what the different objects are, but why they were put together in a pot and buried will probably remain a riddle. http://www.pagowirense.nl/wr-his2a.asp Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted March 15, 2011 Share Posted March 15, 2011 No need for threats. They'll be only too happy to disclose details of former buyers, in exchange for a paper bribe. How ironic Why give paper bribes when violence is free? Quote Link to comment Share on other sites More sharing options...
gravity always wins Posted March 15, 2011 Share Posted March 15, 2011 Which will get seized, the people you buy gold from will have records, and under the smallest threat they will reveal their customers. The anti terrorism squad will come round and simply demand it if you refuse they'll torture it out of you. Or torture your children or your wife to get you to tell them where your gold is stashed. Yes this does tend to happen a lot. I can't think of any instances where this has happened but I am sure you are right and not a complete loon. Quote Link to comment Share on other sites More sharing options...
gravity always wins Posted March 15, 2011 Share Posted March 15, 2011 No need for threats. They'll be only too happy to disclose details of former buyers, in exchange for a paper bribe. How ironic Will they come for my goldmining stocks do you think? Perhaps I should buy Google instead and just stick with the flock! Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted March 15, 2011 Share Posted March 15, 2011 Yes this does tend to happen a lot. I can't think of any instances where this has happened but I am sure you are right and not a complete loon. http://en.wikipedia.org/wiki/Executive_Order_6102 Quote Link to comment Share on other sites More sharing options...
gravity always wins Posted March 15, 2011 Share Posted March 15, 2011 Well no actually it was never confiscated at force by anti terror police some gold was handed in but most wasn't and only a hnadful ever got prosecuted not quite the threat of violence as intimated by the poster. Obvioulsy I was aware of 1933 as I am it was a truly deflationary period which can only occur under a gold standard gold was shortly afterwards revalued upwards and goldminers did rather well compared to the Dow. Nice cut n paste though Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted March 15, 2011 Share Posted March 15, 2011 Nice cut n paste though Beats typing it all out. Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted March 15, 2011 Share Posted March 15, 2011 It is seizures in general not just gold. I.e. whatever has value at a certain time. If it is valuable too valuable then it tempts the government to seize it. The biggest example is land, the state effectively seized all of the land centuries ago, the CCP in China seized ALL land post civil war. In Japan/ China grain was seized and confiscated by the state. 1997 guns were seized by the state, to prevent people from kicking up too much of a fuss.... today it's fiat money they seize it from you backed by guns.... If you don't believe seizures take place then don't pay your taxes for a bit, see how long your legs remain unbroken. Government = confiscation via deception and force. This is fundamental to all government. When the time is right gold/silver will be seized along with food and your other assets. Quote Link to comment Share on other sites More sharing options...
Fairies Wear Boots Posted March 15, 2011 Share Posted March 15, 2011 The first round of QE money looks like it had the desired effect on house prices, i.e. stopped them plummeting. The resulting inflation is killing the rest of us. However, it wont stop them doing it again if they need to. So, if they print again, will you throw in the towel and buy ? No. I shall sit on the side lines going "it's not fair". So is the first lot of QE keeping prices up? I suppose in one way it is, because the banks didn't go bust. Apart from that, it seems to me that ZIRP and SMI are keeping the house prices up. What will another round of QE achieve? Will banks have more money to lend? They seem to have stuff all after QE1. 29,000 mortgage approvals last month. This thread has the "they will inflate our debts away" theory strongly at it's core. I didn't think they could do that without trashing our currency, which would be alot worse than our housing market collapsing. I have started to think that maybe some strong inflation would be a good thing. If inflation kicks off (even more so), we will have rate rises, nomimal falls, cheap houses, and inflation to inflate the debt we owe on houses bought at somewhere near the bottom, away. There's only one problem with this, BTL scum might be able to work that out too. Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted March 15, 2011 Share Posted March 15, 2011 This thread has the "they will inflate our debts away" theory strongly at it's core. I didn't think they could do that without trashing our currency, which would be alot worse than our housing market collapsing. Erm they already have trashed our currency have you not noticed the drop vs almost everything? Euros US$ (and all proxy US$ currencies) Silver Gold Oil Food Everything. Quote Link to comment Share on other sites More sharing options...
Fairies Wear Boots Posted March 15, 2011 Share Posted March 15, 2011 Erm they already have trashed our currency have you not noticed the drop vs almost everything? Euros US$ (and all proxy US$ currencies) Silver Gold Oil Food Everything. Yes I did. And what happens if they do it again? I can't believe they're actually thinking about doing any more. Quote Link to comment Share on other sites More sharing options...
BobBobson Posted March 16, 2011 Share Posted March 16, 2011 (edited) No. I shall sit on the side lines going "it's not fair". So is the first lot of QE keeping prices up? I suppose in one way it is, because the banks didn't go bust. Apart from that, it seems to me that ZIRP and SMI are keeping the house prices up. What will another round of QE achieve? Will banks have more money to lend? They seem to have stuff all after QE1. 29,000 mortgage approvals last month. This thread has the "they will inflate our debts away" theory strongly at it's core. I didn't think they could do that without trashing our currency, which would be alot worse than our housing market collapsing. I have started to think that maybe some strong inflation would be a good thing. If inflation kicks off (even more so), we will have rate rises, nomimal falls, cheap houses, and inflation to inflate the debt we owe on houses bought at somewhere near the bottom, away. There's only one problem with this, BTL scum might be able to work that out too. I would say that it was a little inaccurate to say that QE was to 'keep house prices up'. The money printing was so that all the insolvent/bankcrupt financial insitutions could pay thier creditors, which just happened to be a big bunch of other insolvent financial insitutions. This way, the whole cleptocratic gravy train was kept on the tracks, at least for the time being. It of course important that house prices remain nominally high, as peoples homes represent the collateral supporting much of the banks assets and the mortgages represents the underlying assets shakily supporting an upside down derivatives pyramid, destined to persistently be teetering on the edge of collapse, requiring constant injections of QE cash to keep it hanging on. Trashing of currencies, is exactly what is going to happen. Don't forget, the UK Sterling is a very insignificant currency on a global scale. The U$ dollar, represents 70% of all monetary assets in the world, and due to world growth for the past 30 years being powered by and large US trade deficit consumption, central banks around the world battle constantly trying to inflate thier own currencies in line with the inflation of the US dollar, in order to keep their economies competitive. In short, the US dollar is effectively the worlds reserve currency, and so all eyes should look to the Federal Reserve for signs of things to come. And guess what, its QE3, QE4, QE5, QE6, etc. Strong inflation is only going to be a good thing if you have a huge amount of debt and can stay afloat during the coming economic storm. What we are experiencing and will continue to experience is not an inflation of prices, due to the common man having more money to spend and thus bidding prices up, it is an inflation due to vast amounts of capital being handed out to the ultra wealthy to save thier financial insitutions from smashing, enabling for smart reallocation of capital and increased volumes of cash to start bidding up commodites at a producer to market level. Since thier is no investment in the real economy (not that we have had such a thing for 30 years now in the UK), upon which the great majority of the people rely on to earn thier daily crust, and indeed in the UK, thier is a big tax hike (more tax loopholes for ultra rich mind u) combined with government spending cuts combined with wage freezes or increases below the line of CPI (which are all just fuzzy cooked numbers to mislead the public anyway), the common man is going to find the value of the penny in his pocket drop to less and less, whilst acquiring the pennies becomes increasingly harder. What we are going to experience, is stagflation. Big inflation of the money supply, prevailing big price hikes, combined with economic recession and lack of opportunities. Edited March 16, 2011 by Retardstic Quote Link to comment Share on other sites More sharing options...
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