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Gb Injects Money Into The Money Markets ......


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I am sure you guys know this already.

It was just announced on RADIO 2 NEWS.

Not sure the exact amount he is 'injecting' but it WAS billions.

What will be the consequences of this then ?

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I can't believe what I am hearing/seeing lately, this is far worse than I ever thought it would be.

GB is now a joke.

This reminds me of what is must have been like in the days of the WALL STREET CRASH.

I remember the last 'crash' and I am sure I am right in thinking this seems a LOT worse !

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I am sure you guys know this already.

It was just announced on RADIO 2 NEWS.

Not sure the exact amount he is 'injecting' but it WAS billions.

What will be the consequences of this then ?

Gal Bear - I am no expert on these matters but judging by previous liquidity injections the effect will be - not a whole lot.

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That was sweet of him. Where does he find the cash? Or what bank was willing to give him the loan? as personally wouldn't rate his long term job prospects?

Or perhaps it is not a bail out at all, just generous induviduals donating to UK tax payers through the form of an interest free loan with no pay back date, hell they've been using those for years for party political funding, why not ramp it up a notch. Such Genius!

Edited by Yoss
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I am sure you guys know this already.

It was just announced on RADIO 2 NEWS.

Not sure the exact amount he is 'injecting' but it WAS billions.

What will be the consequences of this then ?

It will mean more money flowing into markets that will give a good return i.e. commodities. This means higher food and fuel prices - thanks Gordon you great t*wat!

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Does anyone know the total money the Bank of England has in reserve so it can make available as liquidity? Am I right in understanding that once it has lent out all the money in reserve any further money it makes available are not backed up by production/assets and as such lead directly to hyperinflation?

This sounds like a solution fit for the UK?

Weimar Republic The Early Years: Internal Conflict (1919–1923)

Since striking workers were paid benefits by the state, much additional currency was printed, fuelling a period of hyperinflation. Hyperinflation started when Germany had no goods to trade with. The government printed money to deal with the crisis; this allowed Germany to pay war loans and reparations with worthless marks and helped formerly great industrialists to pay back their own loans. Circulation of money rocketed, and soon the Germans discovered their money was worthless.

Replace former great industrialists with banks and we are there?

Edited by z750s
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This sounds like a solution fit for the UK?

Weimar Republic The Early Years: Internal Conflict (1919–1923)

I'm seeing a very similar pattern to what happened to the French Assignats in the 1790's. ie. Printing currency backed by property bonds.

No prizes for guessing what happened to that.

The assignats were issued after the confiscation of church properties in 1790 because the government was bankrupt. The government thought that the financial problems could be solved by printing certificates representing the value of church properties.

Originally meant as bonds, they evolved into a currency used as legal tender. As there was no control over the amount to be printed, the value of the assignats exceeded that of the confiscated properties. This caused massive hyperinflation. In the beginning of 1792, they had lost most of their nominal value.

http://en.wikipedia.org/wiki/Assignat

250px-Assignat_de_15_sols.jpg

Edited by narco
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