Jump to content
House Price Crash Forum
Sign in to follow this  
zugzwang

Mervo The Clown: More Qe Won't Save The World

Recommended Posts

The shameless old fraud finally appears to have half a clue. He's still talking about 'serious disequilibria in and between markets' though. Serious disequilibria? They're damn well indispensible, man! Real financial markets exhibit no equilibrium-restoring tendencies whatsoever.

http://www.telegraph.co.uk/finance/economics/11356492/More-QE-will-not-help-the-world-says-Mervyn-King.html

More monetary stimulus will not help the world economy return to strong growth, former Bank of England governor Mervyn King said, days before the European Central Bank is expected to decide whether to embark on a massive bond-buying programme.

In his first public speech in England since his term at the BoE ended in June 2013, Mr King said he was concerned about a persistent weakness in global economic demand, six years on from the depths of the financial crisis.

"We should worry about that," Mr King told an audience at the London School of Economics, where he was once a professor.

"We have had the biggest monetary stimulus that the world must have ever seen, and we still have not solved the problem of weak demand. The idea that monetary stimulus after six years ... is the answer doesn't seem (right) to me," he added.

...months of sub-zero inflation in the eurozone mean that many economists now expect the ECB to announce this step after its first policy meeting of 2015 ends on Thursday.

Chancellor George Osborne and Mr King's successor at the BoE, Mark Carney, have both said they would support such a move.

But Mr King doubted more stimulus would work, noting imbalances such as China's and Germany's large trade surpluses and Britain's low rate of savings.

"There are quite serious disequilibria both between and within economies that, for good economic reasons, are depressing demand. Simply lowering rates even further or adding more monetary stimulus is unlikely to solve that problem," he said.

Share this post


Link to post
Share on other sites

The shameless old fraud finally appears to have half a clue. He's still talking about 'serious disequilibria in and between markets' though. Serious disequilibria? They're damn well indispensible, man! Real financial markets exhibit no equilibrium-restoring tendencies whatsoever.

http://www.telegraph.co.uk/finance/economics/11356492/More-QE-will-not-help-the-world-says-Mervyn-King.html

Maybe paying the unproductive people of the world half of what the productive people get, rather than the other way round, would help ?

Share this post


Link to post
Share on other sites

One thing for sure, more QE won't pump up this fraudster's ill gotten pension any more. So lucky for the central bank pension fund to be invested in such a way that central bank workers were one of the biggest benefactors of their own crooked monetary polciies and QE.

Share this post


Link to post
Share on other sites

He's having a revelation much like Greenspan did after he left the US job.

They can't really just parrot the central bankers and expect to get any limelight - they've got to be realistic.

Edited by billybong

Share this post


Link to post
Share on other sites

Problem in EZ is lack of german demand. Bleedin obvious.

Elsewere also wages are too low.

5 yrs of austeriteh was a disaster.

Share this post


Link to post
Share on other sites

Always makes me laugh, homeowners where the houses have become the new standard of money, wanting others to spend their savings, embrace as much debt as possible, sacrifice themselves to the gods of HPI and consumerism.

It's never that house prices are too high, too much owned by landlords who in the spree they want would only buy more... always that wages are too low, never enough debt can be put on the public balance sheet.

Share this post


Link to post
Share on other sites

Problem in EZ is lack of german demand. Bleedin obvious.

You should try buying a house here. Selling like warme Brötchen.

Old bankers seem to be like old politicians (how odd!), they never actually admit they were wrong, but they start to talk a bit more sense after they've retired

Edited by Steppenpig

Share this post


Link to post
Share on other sites

I'm not quite sure what else the Germans should be buying?

Yes how dare they save up for the future, they should be like my parents with 3 ipads and 3 laptops ... and a mortgage in their late 60s.

Share this post


Link to post
Share on other sites

Yes how dare they save up for the future, they should be like my parents with 3 ipads and 3 laptops ... and a mortgage in their late 60s.

Do they really have 3 ipads and 3 laptop? Btw, I have 1 laptop and no ipads! (and no I'm not an apple hater, I just think they are a little bit over priced!)

Share this post


Link to post
Share on other sites

The objective of QE is to make the rich richer. It's working.

What are they going to spend it on if there is nobody willing to make it for them?

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   215 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.