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Mervyn King Signals Bank Of England Is Preparing For New Round Of Qe


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HOLA441

http://www.independent.co.uk/news/business/news/mervyn-king-signals-bank-of-england-is-preparing-for-new-round-of-qe-8223572.html

Addressing a meeting of the South Wales chamber of commerce in Cardiff last night, Sir Mervyn said he expected the UK economy to continue its "zig zag pattern" of growth and that the Bank stood "ready to inject more money into the economy" as a result.

Another hit-and-run story from Cardiff!

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imagine though if they just gave every adult 5k each, that would really get things going, or would it? :D

Like all of this printing, it would accelerate the self-destruction of the current system, so I guess in that sense it would be a good thing.

Personally I hope Merv('s successor) just opens up the printing presses and really lets rip. It's clear we are not going to pull back from the edge and voluntarily accept that moral hazard has consequences and ought to be avoided, so might as well get it over with and learn the lesson the hard way.

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Q.E. / £15 billion government borrowing per months = number of months between Q.E.print runs.

It's that simple.

If the UK had to borrow from 'the market' interest rates would be 15%.

The Q.E. is theft from us all....steakling our money and our futures...to what end...to save/profit the bankers.

It's time some journalists picked up on this and did something about it.

Edited by TheCountOfNowhere
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£1.50 a litre at the pumps coming soon

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HOLA447

Q.E. / £15 billion government borrowing per months = number of months between Q.E.print runs.

It's that simple.

If the UK had to borrow from 'the market' interest rates would be 15%.

The Q.E. is theft from us all....steakling our money and our futures...to what end...to save/profit the bankers.

It's time some journalists picked up on this and did something about it.

it is time they did, but they wont, and they never mention house prices are too high, always say everything else but the price is too high

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it is time they did, but they wont, and they never mention house prices are too high, always say everything else but the price is too high

Yip, they always say it's a lending issue, never a price issue.

At some point though all the young journalists who can't afford to buy a house will take over and we will have a sea change.

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HOLA4418

"He added that without low interest rates and quantitative easing the economy would be in a much worse state than it is"

Whenever I read this stated as unchallenged fact, I feel a murderous rage building inside.......

Yes, trying to correct the effect of the cause. ;)

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Different slant on it here:

BoE King's speech adds to doubts over more QE

LONDON, Oct 24 (Reuters) - Sterling edged higher on Wednesday after Governor Mervyn King said the Bank of England would have to think "long and hard" about pumping any more cash into the economy, dampening hopes of clearer support for more stimulus.

Unorthodox methods used by the BoE to prop up the economy were reaching their limits of effectiveness according to King and markets took his comments as a sign that further quantitative easing (QE) in November was not a done deal.

QE is generally seen as negative for a currency as it increases its supply.

"People don't expect the economy to do anything other than bump along the bottom and QE is less and less effective," said Kit Juckes, currency strategist at Societe Generale.

"It is a rather gloomy message but there is a first response that maybe one should buy sterling on the back of this after yesterday's fall."

The pound was up 0.1 percent at $1.5965, recovering from a 6-week low of $1.5914 struck on Tuesday, and well below last week's peak of $1.6178.

Preliminary UK GDP data for the third quarter on Thursday are expected to show the economy pulling back out of recession but there is little prospect of more bullish growth.

King also underlined that even if "storm clouds" from the euro zone were fading somewhat, the economy will also now suffer from a slowdown of emerging markets - the world's main engine of growth in recent years.

The pound rose against the euro, with the single currency down 0.5 percent at 81.01 pence, retreating from a 5-1/2 month high of 81.65 pence hit on Monday. It slipped below its 200-day moving average of 81.08 pence, opening the door for some more losses in the near term.

The single currency fell to a one-week low against the dollar of $1.2922 after weaker-than-expected German PMI and sentiment data fuelled concerns about the resilience of the euro zone's largest economy.

Since the euro zone is the UK's largest trading partner, soft data from Europe is likely to drag sterling lower against the dollar. According to a note by Lloyds Bank, should UK GDP data disappoint, there are few major support levels for sterling until the $1.58 area.

http://uk.reuters.com/article/2012/10/24/markets-forex-sterling-idUKL5E8LO4CO20121024

It's not the EU's fault now for the mess we are in, he has switched to emerging markets.

Edited by Democorruptcy
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Popped by trade supplier I use(d) quite often today. Got talking about business. Infromed me that his targets for the month raised by 10% or so, I informed hiim he probably won;t see me much - only going to do work that pays, the costs are such now that anything with minimal upside and not long duration simply not worth the hassle.

Got home had a chat with an old friend, trouble with boiler and tripping, his old gase safe registered contact who checked the system out which is now causing trouble again has thrown in the towel and won't be stumping up again for the "priviledge" of working.

Nothing like inflation to weed out marginal work, it won't get done or will get one, for a price.

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Pay cuts all round then chaps, again!

If the BoE took money out of everyone's bank account or sent them a bill in the mail there would be angry mobs on the streets, but with all the smoke and mirrors of QE nobody sees the theft that is really going on.

Is this madness ever going to end or shall we just write off the next two decades like Japan?

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HOLA4423

Q.E. / £15 billion government borrowing per months = number of months between Q.E.print runs.

It's that simple.

If the UK had to borrow from 'the market' interest rates would be 15%.

The Q.E. is theft from us all....steakling our money and our futures...to what end...to save/profit the bankers.

It's time some journalists picked up on this and did something about it.

I'm not sure it's specifically to save bankers. It's to bale out people who otherwise couldn't afford to pay their debts if the government didn't keep on injecting money into the economy to fund their jobs.

Clearly this benefits the bankers as well, but I'm sure the main concern is maintaining economic monetary expansion and propping up asset prices (nominally). The fact that this will save the banks is a shame bonus.

While investment banks are managing to pay out more per graduate than any other industry ( Linky ) at least retail banks seem pretty screwed.

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Have you all protected yourselves ?

The money of Kings and Gentlemen isn't working out so well right now. Anyone who got involved over the past 12 months are probably wondering why the hell they bothered :(

You can run from the money printers but you cannot hide (protect yourself), or so they would have us believe...

Best protection seems to be spending money on the things that will be required in life, now and later. A house is at the top of my list but those are still 50% overvalued here in the UK, still that may not matter in the full course of time if this money printing madness continues unabated.

What a clusterfukc!

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HOLA4425

The money of Kings and Gentlemen isn't working out so well right now. Anyone who got involved over the past 12 months are probably wondering why the hell they bothered :(

You can run from the money printers but you cannot hide (protect yourself), or so they would have us believe...

Best protection seems to be spending money on the things that will be required in life, now and later. A house is at the top of my list but those are still 50% overvalued here in the UK, still that may not matter in the full course of time if this money printing madness continues unabated.

What a clusterfukc!

tter judgement

dont be so hard on yourself, in reality the moment it got a pinned thread on HPC was ample warning, HPC lkes to think of everyone else as sheeple but in reality it is as good a signal as to exuberance as any other, hence why you get ten black day threads when the ftse is spanking and 10 articles linking to the telegraph as a buy when its rising, if HPC was the bible then the UK would have hyperinflated about 12 to 24 months ago

Edited by Georgia O'Keeffe
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