crash2006 Posted October 11, 2012 Share Posted October 11, 2012 Britain's £375bn money printing programme has run out of steam and new ways must be found to stimulate the economy, according to Lord Turner, one of the leading candidates for the Bank of England governorship. http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9602720/Bank-of-England-frontrunner-says-QE-not-enough-to-get-growth-going.html#disqus_thread its all over now the inflation process is due. Quote Link to comment Share on other sites More sharing options...
okaycuckoo Posted October 11, 2012 Share Posted October 11, 2012 New ways must be found to generate energy as well. Doesn't mean they will be found. Quote Link to comment Share on other sites More sharing options...
Take Me Back To London! Posted October 11, 2012 Share Posted October 11, 2012 New ways must be found to generate energy as well. Doesn't mean they will be found. They still have the "thermonuclear" option to charge a negative rate of interest on deposits. Quote Link to comment Share on other sites More sharing options...
MarkG Posted October 12, 2012 Share Posted October 12, 2012 They still have the "thermonuclear" option to charge a negative rate of interest on deposits. Because a bank run is just what they need right now. Quote Link to comment Share on other sites More sharing options...
frederico Posted October 12, 2012 Share Posted October 12, 2012 Still looking for the easy way out, knuckle down and do the work is the only way Quote Link to comment Share on other sites More sharing options...
quibble Posted October 12, 2012 Share Posted October 12, 2012 Sounds like Peston has been briefed that it's debt forgiveness next: http://www.bbc.co.uk/news/business-19918332 Is the strategy to: (1) Strongly identify the incoming governor with more extreme printing / debt forgiveness (2) See how much sterling falls before / when he is elected (3) Open the taps proportional to (2) Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted October 12, 2012 Share Posted October 12, 2012 QE only worked a bit, but we didnt do enough to fix...we need to do more. sounds familiar to anyone who has studied just about every hyperinflation in history. Quote Link to comment Share on other sites More sharing options...
200p Posted October 12, 2012 Share Posted October 12, 2012 As soon as we know who is governor I will be conducting a full research program into their chess moves and pension bets. If you are not inside, you're outside. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted October 12, 2012 Share Posted October 12, 2012 To understand the incomprehensible scope of the German inflation maybe it’s best to start with something basic….like a loaf of bread. (To keep things simple we’ll substitute dollars and cents in place of marks and pfennigs. You’ll get the picture.) In the middle of 1914, just before the war, a one pound loaf of bread cost 13 cents. Two years later it was 19 cents. Two years more and it sold for 22 cents. By 1919 it was 26 cents. Now the fun begins. In 1920, a loaf of bread soared to $1.20, and then in 1921 it hit $1.35. By the middle of 1922 it was $3.50. At the start of 1923 it rocketed to $700 a loaf. Five months later a loaf went for $1200. By September it was $2 million. A month later it was $670 million (wide spread rioting broke out). The next month it hit $3 billion. By mid month it was $100 billion. Then it all collapsed. Let’s go back to “marks”. In 1913, the total currency of Germany was a grand total of 6 billion marks. In November of 1923 that loaf of bread we just talked about cost 428 billion marks. A kilo of fresh butter cost 6000 billion marks (as you will note that kilo of butter cost 1000 times more than the entire money supply of the nation just 10 years earlier). PLEASE NOTE...MANY BREADS TODAY ARE AROUND £1.20 and more. Quote Link to comment Share on other sites More sharing options...
mikthe20 Posted October 12, 2012 Share Posted October 12, 2012 sounds familiar to anyone who has studied just about every hyperinflation in history. Yes, I presume all those working at the BoE were unfortunately ill in bed with their fag with an absolutely awful cold when that lecture was given. Although by their acts you'd think no-one at the BoE or government had ever studied economic history. Quote Link to comment Share on other sites More sharing options...
Nationalist Posted October 12, 2012 Share Posted October 12, 2012 (edited) We've had Steady Eddie, Mystic Merv and Helicopter Bernanke - now we need a new cognomen for Turner. I expect he'd like "Turnaround Turner" but Turtle Turner might be more apposite. Edited October 12, 2012 by Nationalist Quote Link to comment Share on other sites More sharing options...
ader Posted October 12, 2012 Share Posted October 12, 2012 So remind me again why we haven't all bought houses if significant inflation cometh? Is it cos I is unable to earn more? Quote Link to comment Share on other sites More sharing options...
Dorkins Posted October 12, 2012 Share Posted October 12, 2012 We've had Steady Eddie, Mystic Merv and Helicopter Bernanke - now we need a new cognomen for Turner. I expect he'd like "Turnaround Turner" but Turtle Turner might be more apposite. I expect we will be talking about Turner's Trillion once he's printed that much. Quote Link to comment Share on other sites More sharing options...
GeordieAndy Posted October 12, 2012 Share Posted October 12, 2012 So remind me again why we haven't all bought houses if significant inflation cometh? Is it cos I is unable to earn more? I did last month finally - got a nice family home at 2003 prices which is not as low as I expected when I sold to rent but we are all happy. Quote Link to comment Share on other sites More sharing options...
frederick Posted October 12, 2012 Share Posted October 12, 2012 QE only worked a bit, but we didnt do enough to fix...we need to do more. sounds familiar to anyone who has studied just about every hyperinflation in history. To understand the incomprehensible scope of the German inflation maybe it’s best to start with something basic….like a loaf of bread. (To keep things simple we’ll substitute dollars and cents in place of marks and pfennigs. You’ll get the picture.) In the middle of 1914, just before the war, a one pound loaf of bread cost 13 cents. Two years later it was 19 cents. Two years more and it sold for 22 cents. By 1919 it was 26 cents. Now the fun begins. In 1920, a loaf of bread soared to $1.20, and then in 1921 it hit $1.35. By the middle of 1922 it was $3.50. At the start of 1923 it rocketed to $700 a loaf. Five months later a loaf went for $1200. By September it was $2 million. A month later it was $670 million (wide spread rioting broke out). The next month it hit $3 billion. By mid month it was $100 billion. Then it all collapsed. Let’s go back to “marks”. In 1913, the total currency of Germany was a grand total of 6 billion marks. In November of 1923 that loaf of bread we just talked about cost 428 billion marks. A kilo of fresh butter cost 6000 billion marks (as you will note that kilo of butter cost 1000 times more than the entire money supply of the nation just 10 years earlier). PLEASE NOTE...MANY BREADS TODAY ARE AROUND £1.20 and more. Someones been read "when money dies", shame it wasn't someone who runs our economy. Quote Link to comment Share on other sites More sharing options...
Errol Posted October 12, 2012 Share Posted October 12, 2012 (edited) They still have the "thermonuclear" option to charge a negative rate of interest on deposits. Everyone (who hasn't done already) will just withdraw all their money and buy gold/silver/art/antiques/food etc etc. Edited October 12, 2012 by Errol Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted October 12, 2012 Share Posted October 12, 2012 Someones been read "when money dies", shame it wasn't someone who runs our economy. not me...I read Austrian Economics.....the quote is a requote from Zero hedge....some guy from UBS Quote Link to comment Share on other sites More sharing options...
feed Posted October 12, 2012 Share Posted October 12, 2012 Everyone (who hasn't done already) will just withdraw all their money and buy gold/silver/art/antiques/food etc etc. So you’re saying it would work then. Quote Link to comment Share on other sites More sharing options...
The Spaniard Posted October 12, 2012 Share Posted October 12, 2012 Everyone (who hasn't done already) will just withdraw all their money and buy gold/silver/art/antiques/food etc etc. What would the sellers then do with the money? Quote Link to comment Share on other sites More sharing options...
GeordieAndy Posted October 12, 2012 Share Posted October 12, 2012 What would the sellers then do with the money? The sellers would be left holding the dirty nappy Quote Link to comment Share on other sites More sharing options...
Errol Posted October 12, 2012 Share Posted October 12, 2012 The sellers would be left holding the dirty nappy Yes, anyone silly enough to sell could always use their wheelbarrow of cash to make a fire or something. Isn't that what they did in Germany? Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted October 12, 2012 Share Posted October 12, 2012 Everyone (who hasn't done already) will just withdraw all their money and buy gold/silver/art/antiques/food etc etc. art? Quote Link to comment Share on other sites More sharing options...
Errol Posted October 12, 2012 Share Posted October 12, 2012 art? Fine jewels, Faberge, exceptional paintings etc. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted October 12, 2012 Share Posted October 12, 2012 Fine jewels, Faberge, exceptional paintings etc. thanks, i was almost about to drive to Dedham fine watercolours. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted October 12, 2012 Share Posted October 12, 2012 thanks, i was almost about to drive to Dedham fine watercolours. I was pinning my hopes on the kids' playdoh collection. This time next year Rodders... Quote Link to comment Share on other sites More sharing options...
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