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Carney Rejects Increasing Qe

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http://www.bbc.co.uk/news/business-24295286

The pound has jumped against the dollar after Bank of England governor Mark Carney said that he saw no need for further quantitative easing (QE).

Under QE, the bank has added £375bn to the economy by buying financial assets.

In an interview with the Yorkshire Post, Mr Carney said the Bank would consider the case for raising that spending, if the recovery faltered.

Hilarious if the recovery faltered! What recovery?

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http://www.yorkshirepost.co.uk/business/business-news/yorkshire-can-reap-benefits-from-turnaround-says-mark-carney-1-6089216

THE new Governor of the Bank of England said Yorkshire is one of the potential growth areas as the financial services industry restructures itself following the banking crisis.

Speaking to the Yorkshire Post during a visit to Leeds, Mark Carney highlighted the virtues commonly associated with smaller lenders.

He said: “If you look at what is valued again in financial services, it is a focus on financial institutions that can make their own credit decisions, that aren’t run by algorithms or computers, that know their customers, that have areas of focus and speciality, that have boards that are actively involved and aware of concentration risk.”

..

He said: “The point being that new institutions that have a regional focus, that know their customers and have that attitude are going to develop and we see some examples here.”

Is he expecting a new wave of banks / building societies emerging? :blink:

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http://www.yorkshirepost.co.uk/business/business-news/carney-sees-green-shoots-of-recovery-on-visit-to-region-1-6089277

THE economic recovery is under way in Yorkshire, the new Governor of the Bank of England said during a visit to the region.

Mark Carney told the Yorkshire Post: “It’s gathering some pace, but it’s still early days.”

He added that the sustainability of the wider UK recovery will “turn on gradually getting incomes up, more people into work, but also getting wages up over time and that’s going to come from sustained demand and a balanced recovery”.

Mr Carney defended his controversial new forward guidance policy, which was designed to give households and businesses advance notice of interest rate hikes. The central bank will consider increasing the cost of borrowing once average UK unemployment falls to seven per cent.

Mr Carney said: “[We are] well aware that the level of unemployment in the region is nearer to nine per cent than it is to the national average of 7.7 per cent.

“But this is a policy for the UK as a whole and the point is that businesses and households understand that we are not going to look to raise interest rates until we see the economy really growing.

So unlike Eddie George's policy the North isn't going to be the break for Southern inflation? Somehow I doubt he's going to make that choice, the north will be willingly sacrificed to save the all important City.

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No need for 'more' - so they keep the existing amount ongoing for ever?

Also, I presume that means we can put interest rates up to 5-6% now?

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I'm surprised someone hasn't tried. It doesn't even need scripting as someone else is doing that for you.

A bit like Yes, Minister. I could just imagine Nigel Hawthorne playing a banker ...

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This is pure BBC propaganda.

If the Pound genuinely strengthened then it would also rise against the Euro.

And against gold and gold has barely budged in pounds this morning.

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Cable shot up suddenly this morning at about 7am this morning and it quickly retraced..

gbpusd-h1-ig.png

Like a news event spike and the only thing I could see was the Nationwide HPI data this morning. I'd no position at the time so not particularly bothered. I think cable is getting ready for a significant correction, especially with recent economic data misses. A boost from this VI HPI survey is really desperation.

Correction actually 6AM this morning. I'm sure the data wasn't leaked :P

Edited by aSecureTenant

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Just as long as the nonexistent recovery continues in the 'major advanced' economies.

:lol:

“The advanced economies as a whole are doing a bit better. That’s going to help the UK as a whole. These are more traditional export markets so that matters," he said.

"Within the UK, we are probably leading the pack of the major advanced economies as we speak right now. But of course we had the deepest recession so we are coming back from that."

global-gdp-growth-to-2013.png

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+1

Every time !!!

They saw there is no bubble...but the stoke the bubble.

They should be held accountable for their mistakes.

They are not mistakes!

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Just as long as the nonexistent recovery continues in the 'major advanced' economies.

:lol:

global-gdp-growth-to-2013.png

The advanced economies appear to have been struggling for a long time with growth slowly flat-lining. It would appear the debt expansion growth model has been floundering for sometime.

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The advanced economies appear to have been struggling for a long time with growth slowly flat-lining. It would appear the debt expansion growth model has been floundering for sometime.

Perhaps coupled with peak everything. Intelligence, Oil, Gold etc.

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the gathering pace of the recovery,

It's not only a "recovery" but lo and behold it's "gathering pace" all of a sudden. It's got to be Mark "Fertile Imagination" Carney.

And that on the basis of a sentiment indicator and just a couple of months of increased "growth" :rolleyes:

No wonder they couldn't see the housing bubble when it was right under their noses - the current London bubble, any other bubble or pretty much anything else for that matter.

Edited by billybong

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It's not only a "recovery" but lo and behold it's "gathering pace" all of a sudden. It's got to be Mark "Fertile Imagination" Carney.

And that on the basis of a sentiment indicator and just a couple of months of increased "growth" :rolleyes:

No wonder they couldn't see the housing bubble when it was right under their noses - the current London bubble, any other bubble or pretty much anything else for that matter.

They can see it alright... but they know they can't win a GE without it. Shameful.

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The advanced economies appear to have been struggling for a long time with growth slowly flat-lining. It would appear the debt expansion growth model has been floundering for sometime.

QE can't overcome a debt depression. Plain and simple, it doesn't work.

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According to this iii article, QE has already ended.

--------------------------------------------------------------------------------------------------------------------

Viewpoint: The shocking truth about QE

By Ken Fisher | Thu, 19th September 2013 - 00:00

Viewpoint: The shocking truth about QE

Great news: quantitative easing is ending soon.

Yes, you read that right. People fret QE's end will be a bad thing, but it isn't. It's ultra-bullish. How do you know? Britain's economy accelerated after the Bank of England (BoE) quit its own QE lunacy, and virtually no one notices. That's a powerful precedent with huge surprise potential.

At 25% of gross domestic product (GDP), British QE was bigger than the US's - and it was no stimulus. It flattened the spread between short and long rates, a key source of bank profits - banks' primary motive to lend. Reducing them discourages lending - so it's anti-growth. If QE was truly stimulative, money supply would have grown fast. But broad money fell £149 billion from March 2010 to March 2012 and rose at a snail's pace after. GDP dipped and dived.

People thought QE was the only reason the UK economy didn't crater in 2010 and 2011. Not true - QE restrained growth. The BoE and Chancellor of the Exchequer tried a host of programmes to boost credit, not seeing that ceasing QE would be the real stimulus (and simpler).

Now Britain's economic chains are off, and it's skipping along. After the BoE stopped buying gilts last November, the yield spread widened and money supply sped up.

Services, manufacturing and construction purchasing managers' indices - all choppy during QE - are on a winning streak. Retail sales and housing, too. Mortgage approvals are going gangbusters and overall loan growth is stabilising. Second-quarter imports - a key domestic demand indicator - grew the fastest in three years. Fixed investment grew consecutive quarters for the first time since 2007. GDP accelerated. Corporate profitability strengthened. Shares are screaming. The FTSE 100 (UKX) is up double digits year-to-date.

All wildly contradict the notion of a modest, gradual reduction in the central bank's balance sheet being disastrous for the economy or stocks.

Expect the same for the US. Markets fear the party will stop once the Federal Reserve pulls the punchbowl - not realising the punchbowl is laced with sedatives. That the US is partying anyway is a miracle of underappreciated private sector strength. Once the Fed stops squashing the US yield spread, growth should skyrocket - just like Britain. It's basic.

Yet almost no one connects the dots between QE's end and Britain's swifter growth. Few even realised British QE was over until July, when BoE hold-outs stopped pushing for a restart. People wondered then what would become of the UK, not knowing they had the answer. Britons still don't see it and Americans don't even think to look across the pond.

So when American QE ends and the world doesn't, investors will be shocked. False fears are bullish. The bigger the misperception, the bigger the surprise power - and QE taper terror is a massive misperception. Faster growth will force investors to rethink their dismal outlook on shares. As their false fears flip to bullish belief, they'll pay more for future earnings.

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http://

en.wikipedia.org/wiki/TopCashBack

TopCashBack is a cashback website based in the UK, with offices in Uttoxeter (Staffordshire), Bolton (Greater Manchester) and Charing Cross (London). The website passes on commission usually paid to third-party referrers directly to its members.[3] It also lists voucher codes and provides product comparison tools.

The website's member base uses TopCashBack as a portal of retailer websites. Commission is paid by these retailers on each purchase made on their sites and this is then passed back to the members. Cashback websites have become prevalent with the rise in popularity of ecommerce stores and shopping online, with the aid of a tracking cookie the purchase can be recorded on the merchant's website as a referral from TopCashBack.

It seems QE or no QE the economy is going to be accelerating/booming/"skipping along/going gangbusters" - so spend money in retailers?

Edited by billybong

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