Jump to content
House Price Crash Forum
Errol

Business Leaders Plead For More Quantitative Easing

Recommended Posts

Business leaders plead for more quantitative easing

Business leaders are urging the Bank of England to authorise another £50bn of quantitative easing when its monetary policy committee meets today in order to boost bank lending and prevent the economy slipping back into recession.

http://www.guardian.co.uk/business/2011/sep/08/business-leaders-plead-for-quantitative-easaing

PRINTY PRINTY? :lol:

Share this post


Link to post
Share on other sites

Can these people pronounce Weimer? :blink:

What I would have liked is a nice flow chart to show me EXACTLY where this money will go.

Share this post


Link to post
Share on other sites

http://lynncoins.com/fiat-money-france5.htm

I have now presented this history in its chronological order—the order of events: let me, in conclusion, sum it up, briefly, in its logical order,--the order of cause and effect.

And, first, in the economic department. From the early reluctant and careful issues of paper we saw, as an immediate result, improvement and activity in business. Then arose the clamor for more paper money. At first, new issues were made with great difficulty; but, the dyke once broken, the current of irredeemable currency poured through; and, the breach thus enlarging, this currency was soon swollen beyond control. It was urged on by speculators for a rise in values; by demagogues who persuaded the mob that a nation, by its simple fiat, could stamp real value to any amount upon valueless objects. As a natural consequence a great debtor class grew rapidly, and this class gave its influence to depreciate more and more the currency in which its debts were to be paid.[85]

The government now began, and continued by spasms to grind out still more paper; commerce was at first stimulated by the difference in exchange; but this cause soon ceased to operate, and commerce, having been stimulated unhealthfully, wasted away.

Manufactures at first received a great impulse; but, ere long, this overproduction and overstimulus proved as fatal to them as to commerce. From time to time there was a revival of hope caused by an apparent revival of business; but this revival of business was at last seen to be caused more and more by the desire of far-seeing and cunning men of affairs to exchange paper money for objects of permanent value. As to the people at large, the classes living on fixed incomes and small salaries felt the pressure first, as soon as the purchasing power of their fixed incomes was reduced. Soon the great class living on wages felt it even more sadly.

Prices of the necessities of life increased: merchants were obliged to increase them, not only to cover depreciation of their merchandise, but also to cover their risk of loss from fluctuation; and, while the prices of products thus rose, wages, which had at first gone up, under the general stimulus, lagged behind. Under the universal doubt and discouragement, commerce and manufactures were checked or destroyed. As a consequence the demand for labor was diminished; laboring men were thrown out of employment, and, under the operation of the simplest law of supply and demand, the price of labor—the daily wages of the laboring class—went down until, at a time when prices of food, clothing and various articles of consumption were enormous, wages were nearly as low as at the time preceding the first issue of irredeemable currency.

The mercantile classes at first thought themselves exempt from the general misfortune. They were delighted at the apparent advance in the value of the goods upon their shelves. But they soon found that, as they increased prices to cover the inflation of currency and the risk from fluctuation and uncertainty, purchases became less in amount and payments less sure; a feeling of insecurity spread throughout the country; enterprise was deadened and stagnation followed.

New issues of paper were then clamored for as more drams are demanded by a drunkard. New issues only increased the evil; capitalists were all the more reluctant to embark their money on such a sea of doubt. Workmen of all sorts were more and more thrown out of employment. Issue after issue of currency came; but no relief resulted save a momentary stimulus, which aggravated the disease. The most ingenious evasions of natural laws in finance which the most subtle theorists could contrive were tried—all in vain; the most brilliant substitutes for those laws were tried; “self-regulating” schemes, “interconverting” schemes—all equally vain.[86] All thoughtful men had lost confidence. All men were waiting; stagnation became worse and worse. At last came the collapse and then a return, by a fearful shock, to a state of things which presented something like certainty of remuneration to capital and labor. Then, and not till then, came the beginning of a new era of prosperity.

History, if there was only something we could learn from it.

Share this post


Link to post
Share on other sites

tell you what, shoot me down in flames,but I'd even be supportive of more money printing IF:

-none of that goes to banks or paper purchases

-all of that is used for a massive council housing building programme.

How many council houses could be built with £50bn?

I would say that, at £50,000 per house building cost (very inflated, but it's the government's negotiating here, remember) it's a whopping 1 million houses.

That's a good chunk of the social housing cost taken away from speculative landlords.

Share this post


Link to post
Share on other sites

Just caught the BBC news this morning. Money expert chap talking about IR`s probably staying where they are long term but a decision is likely for some more QE...

Share this post


Link to post
Share on other sites

That's a good chunk of the social housing cost taken away from speculative landlords.

You're mistaking cause and effect.

Speculative landlords are not the cause of the problems we are facing. They are merely a symptom.

I've no doubt many on here would have "invested" in housing to increase their wealth if they had the benefit of hindsight. Lots of those that sold to rent, took a longer view but essentially speculated on house prices. The other side of the coin.

The problems we are facing are caused by overtaxation and the distortions caused by government spending. The housing market is a symptom caused by those distortions, to try and correct the housing market without addressing the underlying issues of the national economy won't rectify our problems.

I've never understood how capital intensive production benefits from lower labour rates to the extent that it was worth relocating industrial production to the other side of the world. Transportation costs should have negated much of the difference, but when you consider it costs more to move goods from the port of entry to warehousing in the UK than it does to get the same goods to the UK international shipping is not a big cost barrier.

I vividly remember television news in the 1970's showing pictures of machine tools being sold at auction at rock bottom prices for export. The pendulum then had swung too far in favour of union power, now it seems it has swung too far in favour of deregulation, the common factor to my mind however is overtaxation.

Share this post


Link to post
Share on other sites

!!! GIVE US MORE FREE MONEY NOW !!!

But who will pay for it. :lol:

Funny how they can find the cash for their own salary hikes, bonuses and pension pots.

Share this post


Link to post
Share on other sites

What I would have liked is a nice flow chart to show me EXACTLY where this money will go.

Yep - with Directors taking xxx times the normal working mans salary you can only imagine keeping their businesses going floods most of this cash straight into their off-shoring, tax-avoiding pockets!

It's time to open business banks and make bosses 'directly' more accountable

Share this post


Link to post
Share on other sites

What I would have liked is a nice flow chart to show me EXACTLY where this money will go.

Bank of England Printer ---> Banks --->Director Pensions Pots and Bonuses--->Offshore somewhere (fck knows)

Edited by John Steed

Share this post


Link to post
Share on other sites

You're mistaking cause and effect.

Speculative landlords are not the cause of the problems we are facing. They are merely a symptom.

I've no doubt many on here would have "invested" in housing to increase their wealth if they had the benefit of hindsight. Lots of those that sold to rent, took a longer view but essentially speculated on house prices. The other side of the coin.

The problems we are facing are caused by overtaxation and the distortions caused by government spending. The housing market is a symptom caused by those distortions, to try and correct the housing market without addressing the underlying issues of the national economy won't rectify our problems.

I've never understood how capital intensive production benefits from lower labour rates to the extent that it was worth relocating industrial production to the other side of the world. Transportation costs should have negated much of the difference, but when you consider it costs more to move goods from the port of entry to warehousing in the UK than it does to get the same goods to the UK international shipping is not a big cost barrier.

I vividly remember television news in the 1970's showing pictures of machine tools being sold at auction at rock bottom prices for export. The pendulum then had swung too far in favour of union power, now it seems it has swung too far in favour of deregulation, the common factor to my mind however is overtaxation.

Tax and rent are the same thing. The government is a landlord, a landlord is a government.

Were central government to lower taxation across the board, rents and house prices would simply rise to take up the slack.

Ricardo's law of rent again

Labour costs and living costs are high because of the total costs of all the various different economic rents collected by various economic parasites.

EDIT: Yes, I would have bought land had I been able to before about 2006 for the same reason I would probably have joined the communist party in Soviet Russia.

Edited by (Blizzard)

Share this post


Link to post
Share on other sites

how about, instead of printing, they place £50bn of tarrifs on imports?

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...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 331 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.