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British Bank Chief Warns Quantitative Easing Is 'laying Seeds For Next Crisis'


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http://www.guardian.co.uk/business/2012/feb/29/ben-bernanke-qe3-hopes-us-economy

A leading British banker has warned that the huge sums of money being pumped into western economies to underpin banks and promote financial stability risk "laying the seeds for the next crisis".

As central bankers on both sides of the Atlantic played down expectations that they were poised to unleash a fresh round of money creation, Peter Sands, the chief executive of Standard Chartered bank, warned it was "going to take time for the rich West to sort itself out".

But Sands's main concern was that support operations by western central banks, which have seen trillions of dollars pumped into the financial system through so-called quantitative easing, could set the scene for more trouble in the years ahead.

Breaking ranks from his fellow bosses, Sands, whose bank is focused mainly in Asia, said: "Banks are still going to have to refinance their loans in three years time. It's not clear what the exit strategy is, nor is it possible to predict what the long-term consequences will be."

The exit strategy if very simply, hopefully it will be someone else's problem. That's the aim of the game.

QE has already set the scene for the next crisis as the world central banks have chosen to feed the junkie, they now have no option but to keep giving the drugs until the junkie dies. No one will admit they have made a mistake.

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http://www.guardian.co.uk/business/2012/feb/29/ben-bernanke-qe3-hopes-us-economy

The exit strategy if very simply, hopefully it will be someone else's problem. That's the aim of the game.

QE has already set the scene for the next crisis as the world central banks have chosen to feed the junkie, they now have no option but to keep giving the drugs until the junkie dies. No one will admit they have made a mistake.

The 'exit strategy' is to stuff as much money in their pockets as they can and scarper before it all blows up.

Mervyn King will out in 2013 so as long as he can kick the can past then it will be someone else's fault and his pension is inflation linked.

All the coalition plans are now pushed into the next parliament. Mortgage indemnity and council FTB schemes that ignore 20% of the mortgage for 5 years. It's now 7 years instead of this parliament to clear the deficit and each time they print money it pushes a zero deficit further away because it finances spending money we don't have. (Don't mention the debt.... I mentioned it once but I think I got away with it)

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Seems there are some QE doubts being voiced by a few now...

http://www.bloomberg.com/news/2012-02-29/boe-s-weale-says-there-may-not-be-case-for-further-u-k-stimulus-this-may.html

BOE’s Weale Says There May Not Be Case for Further U.K. Stimulus This May

Bank of England policy maker Martin Weale said that U.K. inflation may prove more persistent than expected, making it unlikely the economy will require further stimulus once the current round of bond purchases ends......

...Weale’s comments are the most explicit indication by an official that the Monetary Policy Committee’s 50 billion-pound ($80 billion) increase in stimulus in February may be the last. Still, Governor Mervyn King said earlier today that any further loosening of policy will depend on how the economy performs. ...

...Policy maker Paul Fisher said on Feb. 26 that the risk of the U.K. slipping into another recession may have been avoided, and if a positive trend continues, “that would put more weight onto the argument for stopping rather than carrying on” with more bond purchases. Deputy Governor Paul Tucker said yesterday that policy makers must be “alert to the need” to gradually withdraw stimulus when the economy strengthens.

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Seems there are some QE doubts being voiced by a few now...

Yup, he and Sentance were the only MPC to consistently vote for raising BR. Then again, since Sentance was replaced by another f*cking dove Weale's been consipiously silent on the matter.

Blanchflower will be wheeled-out next in the Evening Standard praising King's acumen and solid helmsmanship.

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Personally i question the quantative easing process and i am always thinking maybe these people fiddling the books have some way we dont know about to

just offset and rebalance behind closes doors.

I just wonder if whats going on here isnt a Total change of economic rules , some form of equation that makes no sense to anyone but allows ' quantative easing ' but does not effect or devalue so much ? i know thats like not suppose to be possible but i wonder.I personally think they are upto something we dont see here .

I got that feeling when brown called in all the worlds leaders in 2008 for that meeting and then claimed he had saved the finiancial world that he was dishing out a new equation which maintains stability via ' easing ' but which doesnt devalue.

I think they invented a way to keep pumping cash in but which wont effect devaluation so much , involving some Very very clever trickery , that was Browns style for years

with budgets,

I just find it hard to believe they have not thought of the consequences which are SO odvious that i can only think its deliberate self destruction planned or they will alter books and just keep tweaking the algorthm

The bank of england and finance people Know for a fact that without a house crash and ' burn back ' of the crop as you do in agirculture we will see no Growth.

You cant have growth when everythings peaked out and theres no Room for growth , it wont come from fresh productivity , they know this, its impossible and thats what makes me wonder quite what game they are playing.I find it hard to believe its as simple as ' maintain order until we retire ' mentality as what they are going to do is retire in a civil war zone ? and behind barbed wire ?

I think theres more to this than we understand and some other factor which we dont know about .

They know every outcome so is this deliberate destruction of the pound and why ? or are they just going to keep altering the books .

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Personally i question the quantative easing process and i am always thinking maybe these people fiddling the books have some way we dont know about to

just offset and rebalance behind closes doors.

I just wonder if whats going on here isnt a Total change of economic rules , some form of equation that makes no sense to anyone but allows ' quantative easing ' but does not effect or devalue so much ? i know thats like not suppose to be possible but i wonder.I personally think they are upto something we dont see here .

I got that feeling when brown called in all the worlds leaders in 2008 for that meeting and then claimed he had saved the finiancial world that he was dishing out a new equation which maintains stability via ' easing ' but which doesnt devalue.

I think they invented a way to keep pumping cash in but which wont effect devaluation so much , involving some Very very clever trickery , that was Browns style for years

with budgets,

I just find it hard to believe they have not thought of the consequences which are SO odvious that i can only think its deliberate self destruction planned or they will alter books and just keep tweaking the algorthm

The bank of england and finance people Know for a fact that without a house crash and ' burn back ' of the crop as you do in agirculture we will see no Growth.

You cant have growth when everythings peaked out and theres no Room for growth , it wont come from fresh productivity , they know this, its impossible and thats what makes me wonder quite what game they are playing.I find it hard to believe its as simple as ' maintain order until we retire ' mentality as what they are going to do is retire in a civil war zone ? and behind barbed wire ?

I think theres more to this than we understand and some other factor which we dont know about .

They know every outcome so is this deliberate destruction of the pound and why ? or are they just going to keep altering the books .

Seems to me that QE through fractional reserve banking is a way of transferring wealth to banks (and politicians in their pocket).

The don't want house prices to fall because that would upset homeowners, so they are just making the money behind the price worthless instead. They think people are too stupid to notice, and probably are.

Physical assets are still assets; a lot of their wealth is in property. They are protecting that.

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Seems to me that QE through fractional reserve banking is a way of transferring wealth to banks (and politicians in their pocket).

The don't want house prices to fall because that would upset homeowners, so they are just making the money behind the price worthless instead. They think people are too stupid to notice, and probably are.

Physical assets are still assets; a lot of their wealth is in property. They are protecting that.

That's about the height of it, really. It's all about protecting the elite and even helping them get a larger share of the cake, if possible. A major part of this is supporting asset prices. The only way that they can do this is to make money worth less, thereby allowing the asset price to stay the same or even increase.

If you have your wealth in assets - as all the elite do - you are laughing. If you have your wealth in currency - as most regular people do, those that even have savings that is - then you are being screwed. As is anyone on a job as they are not seeing increases in salary to match increases in the cost of living.

More and more base money is being created. Even with levels of bank lending (i.e. 'money' creation through credit) staying low, we're still seeing appreciable inflation and asset prices stable or increasing. Once they've primed the market with enough money that it makes sense for banks to lend the whole money supply will just go exponential.

Sadly, the general population seems to want to remain wilfully ignorant of financial matters. As long as they have cheap booze, reality TV and talent shows and sports to occupy their vacuous minds they'll quite happily allow themselves to be reamed. Presumably at some point the level of pain that is being inflicted will stir them into action but so far the policy of holding off the final reckoning whilst stealthily stealing wealth via inflation seems to be working just fine.

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More and more base money is being created. Even with levels of bank lending (i.e. 'money' creation through credit) staying low, we're still seeing appreciable inflation and asset prices stable or increasing. Once they've primed the market with enough money that it makes sense for banks to lend the whole money supply will just go exponential.

Sadly, the general population seems to want to remain wilfully ignorant of financial matters. As long as they have cheap booze, reality TV and talent shows and sports to occupy their vacuous minds they'll quite happily allow themselves to be reamed. Presumably at some point the level of pain that is being inflicted will stir them into action but so far the policy of holding off the final reckoning whilst stealthily stealing wealth via inflation seems to be working just fine.

Basically then, QE is just a glorified and MASSIVE form of a

LIAR LOAN.

. :rolleyes:

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So in essence whats happening is Quantative is being used to protect house prices and lower the value of currency so empowering assets more for those with assets ?

my question is where does this end ? with a crash or a sustained con act forever ? or a slow meltdown and ease back into reality ?

And my final question regarding the above , so money is 100% better in assets now of pretty much any kind that retains value ?

Whats the final outcome of all this ?

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  • 433 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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