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Ah-so

Quantitative Easing - where did the money go - Radio 4 8pm 29/1

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http://www.bbc.co.uk/programmes/b09pl66b

The actual documentary is called 'Shaking the Magic Money Tree'.

Since the financial crisis, no less than £435billion of new money has been created through the policy of "quantitative easing", equivalent to a fifth of Britain's annual GDP. In this programme, financial journalist Michael Robinson finds out what happened to this staggering sum of money, and evaluates its effect on the lives of us all.

With the help of expert testimony, Robinson explains how this controversial policy works, effectively creating money at the push of a button. But as he also finds out, the new funds are only indirectly injected into the wider economy, typically through big institutional investors lending to companies. Few of these transactions, it turns out, have involved the kind of 'real world' investment that might be expected to stimulate the productive economy and generate growth. Indeed, almost all of them have been within the financial sector itself, and many people argue that the returns on QE have been astonishingly small.

Moreover, the influx of cash has inflated the price of assets, and led to a relative widening of the gap between rich and poor, which now threatens to upset our economic and political order. Even QE's deliberate objective to lower interest rates has also served to make homes and shares more expensive, while those already holding such assets have seen the greatest benefit. Britain's own 'Magic Money Tree' might have saved the economy from meltdown almost a decade ago, but it seems its many side-effects might have been far less beneficial.

 

Edited by Ah-so

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3 hours ago, thewig said:

Disgusting beeb will not consume 

 

 

Don't understand what you mean by this. An important topic.

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"The 'sound' banker, alas! is not one who foresees danger and avoids it, but one who, when he is ruined, is ruined in a conventional and orthodox way along with his fellows, so that no one can really blame him." -- John Maynard Keynes

Simply because QE is now standard approach does not mean it won't lead to total economic collapse.

Plus isn't it odd that the polices adopted always have one predictable outcome - that is the rich get richer.

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The pretense that the inefficiency in increasing non-financial sector investment wasn't entirely predictable, or openly discussed by central banks throughout the experiment, is just a little insulting.

They refer to the asset bubbles as side-effects, but the acknowledgement of the failure of low rates to achieve their stated objective and then the persistence in that policy suggest those asset bubbles were indeed the primary objective. You don't get to pretend you have a social contract after shit like this.

 

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1 hour ago, Ah-so said:

Don't understand what you mean by this. An important topic.

 

agreed the topic is important but when the medium is the establishment propaganda machine they might as well be discussing whos your fave celeb from x factor on ice or whatever

 

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54 minutes ago, thewig said:

 

agreed the topic is important but when the medium is the establishment propaganda machine they might as well be discussing whos your fave celeb from x factor on ice or whatever

 

Exactly how I was going to summarise it.

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9 hours ago, Ah-so said:

http://www.bbc.co.uk/programmes/b09pl66b

The actual documentary is called 'Shaking the Magic Money Tree'.

Since the financial crisis, no less than £435billion of new money has been created through the policy of "quantitative easing", equivalent to a fifth of Britain's annual GDP. In this programme, financial journalist Michael Robinson finds out what happened to this staggering sum of money, and evaluates its effect on the lives of us all.

With the help of expert testimony, Robinson explains how this controversial policy works, effectively creating money at the push of a button. But as he also finds out, the new funds are only indirectly injected into the wider economy, typically through big institutional investors lending to companies. Few of these transactions, it turns out, have involved the kind of 'real world' investment that might be expected to stimulate the productive economy and generate growth. Indeed, almost all of them have been within the financial sector itself, and many people argue that the returns on QE have been astonishingly small.

Moreover, the influx of cash has inflated the price of assets, and led to a relative widening of the gap between rich and poor, which now threatens to upset our economic and political order. Even QE's deliberate objective to lower interest rates has also served to make homes and shares more expensive, while those already holding such assets have seen the greatest benefit. Britain's own 'Magic Money Tree' might have saved the economy from meltdown almost a decade ago, but it seems its many side-effects might have been far less beneficial.

 

Something is happening when Radio 4 do a comfy investigation.

Strap in.

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7 hours ago, Ah-so said:

Even QE's deliberate objective to lower interest rates

Isn't it a bit more accurate to say that lowering IRs was used to as a means to bring about QE?

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2 hours ago, lombardo said:

Isn't it a bit more accurate to say that lowering IRs was used to as a means to bring about QE?

Wouldn't that assume that QE was not dependent on the solvency of banks?

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4 hours ago, crashmonitor said:

Not so much where it went, but who funded it and therefore lost money. Saving rates from 7% to 1% on fixed rate bonds might be a good place to start. 

B) That is a brilliantly worded, straight to the point, and politically correct analysis.....

Thieving s---s!:(

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5 hours ago, Ah-so said:

Don't understand what you mean by this. An important topic.

Thewig thinks everything on the beeb is the same as the One Show and Strictly. Or that the mainstream news is the same as some of the investigative journalism they do. I posted something similar and got the same response. Or the House of Saud was about the Kardashians.

It smacks of babes and bathwater.

His loss.

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1 hour ago, Freezer? Best place for it said:

The Projectile vomiting caused by Broadbent being "interviewed" by Louise Cooper has barely dried.  R4 has form on this. 

I heard that and agree - it was bad.

Some of them are not the same - listening now with delay, the judge is out.

 

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Had a listen. It was like someone had a read of the HPC forum pages and put it out on the MSM Radio.

They have a Magic Money Tree laptop in a room in the Bank of England and when challenged by presenter, Bank of England lad said he couldn't be sure that it seemed by reading the list of beneficiaries that less than 0.8% of the Magic QE money has gone to businesses, it has instead all gone to banks and the financial sector. And the extra FFL and TFS money has nearly all gone to BTL landlords so they can bid against each other, buying 5-10 houses at a time.

"And if you're one of the people who has done LESS WELL be grateful you have at least still got a job because without QE it could be worse."

LESS WELL should be a badge for us. Maybe we could get some printed.

Magically.

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much crap uttered by BoE brstars went unchallenged.eg that qe lifted all boats and the young and poor are also better off on account of the policy. Lies. It is difficult to feel better off when a modest home is increasing in price per year by much more than your gross income. Many are £100s K worse off. Suck it up is their response.

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Huge thanks to Ah-so for finding this one.  An absolute gem.   As Thorn said above, it was like playing HPC bingo listening to that half an hour. 

The narrative from the BoE about how it would have been much worse for us plebs if they hadn't done it, and the fact that the rich got richer as a side-effect was truly breath-taking in its audacity.   To not be able to defend something with a better argument than "it might have been a lot worse if we hadn't done it" is pretty feeble and I felt the presenter wasn't buying it at all, but within the half-hour format there wasn't a lot of time to expand further on his disagreeing

This is exactly the sort of thing that should find a much wider audience than it will.  I know that pretty much all of my friends and family would not bother to listen to something as "boring" as this programme and thus I fear it will languish in obscurity when it should actually be pretty much compulsory for all adults to hear and know.

In fact, it was so nakedly precise that I can't help wondering if this time TPTB truly do know the game is up and have allowed the BBC to break the news to all of us.

Edited by stop_the_craziness
expansion of a point

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  • 406 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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