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Bank's Posen "pleased" With Monetary Easing

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Bank of England policymaker Adam Posen said on Tuesday he was "pleased" the bank had decided to further ease monetary policy last week.

Posen had long advocated an expansion of the Bank's 200 billion pound asset purchase program. The Bank on October 6 launched a second round of quantitative easing to defend Britain's faltering economy against the euro zone debt crisis, pledging to buy 75 billion pounds of assets with new money in a dramatic move to stave off recession.

Excellent he's pleased we are using a tactic that failed to work last time.


The question will naturally be asked, _On whom did this vast depreciation mainly fall at last_? When this currency had sunk to about one three-hundredth part of its nominal value and, after that, to nothing, in whose hands was the bulk of it? The answer is simple. I shall give it in the exact words of that thoughtful historian from whom I have already quoted: “Before the end of the year 1795 the paper money was almost exclusively in the hands of the working classes, employees and men of small means, whose property was not large enough to invest in stores of goods or national lands.[69] Financiers and men of large means were shrewd enough to put as much of their property as possible into objects of permanent value. The working classes had no such foresight or skill or means. On them finally came the great crushing weight of the loss. After the first collapse came up the cries of the starving. Roads and bridges were neglected; many manufactures were given up in utter helplessness.” To continue, in the words of the historian already cited: “None felt any confidence in the future in any respect; few dared to make a business investment for any length of time and it was accounted a folly to curtail the pleasures of the moment, to accumulate or save for so uncertain a future.”[70]

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Permanent stores of value;

If anyone recalls my tale of investing £100K in poundshop hammers? Well if you missed that one, get onboard with the poundshop G-Clamps. Great quality and they are easily worth £3 now, let alone what they'll be in 5 years. Tripple your money, now hows that for an impressive ROI?

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What would have happened had they not done it?

Lots of pain as the system was purged of all the crap, but we might actually have a genuine recovery.

At the minute we have a foot full of gangrene, the drugs have fail the only option is to amputate to save the rest of the body but the fools in charge are convinced if we only give it more time the drugs will work and we'll recover the foot but ultimately it will means the lower leg will be lost if not the whole leg. If we keep on the current path the patient will die. I'm sure the patient doesn't want to lose a foot but it's a far better result than losing the leg or your life.

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'to further ease monetary policy' It sounds so innocuous. Pumping currency into the system is called 'easing monetary policy'. The more often it is done the easier it will be for it to be done again, and again, ... and again.

We are on one serious slippery slope! :(

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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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