Sunday, March 1, 2009

Endgame for savers

Bank of England poised for rate cut

The Bank of England is set to bring interest rates down to an effective zero-level within days and to sound the starting pistol on quantitative easing, pumping extra cash into the economy. The Government is putting the finishing touches to a letter to the Bank endorsing its proposal to embark on this radical policy. The Bank's governor, Mervyn King, will be granted approval by the Treasury within days to create up to 150bn in new money in the coming months to buy up everything from corporate bonds to government debt. It will pave the way for the Bank's Monetary Policy Committee effectively to "start the presses" at its interest rate setting meeting this Thursday.

Posted by quiet guy @ 10:52 PM (1052 views)
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7 thoughts on “Endgame for savers

  • how long before inflation kicks in and interest rates need to rise?? the last few pages of the following paragraph are a very good read..
    http://www.professorfekete.com/articlesAEFWhitherGold.pdf (written in 1996, seems like the predictions of the inevitable credit collapse, have turned out to be correct)

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  • “start the presses” ?
    Surely today you just ‘click on a mouse’!

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  • mountain goat says:

    3 reasons to take your remaining cash out of banks today.
    – your bank may collapse at any time making access to your cash hard or impossible
    – interest rates are close to zero so might as well keep the cash under the matress where at least access is guaranteed
    – if you leave your savings in the bank, with leveraging it will be lent out 10-20 times, therefore propping up the housing bubble and getting more people deeper into debt

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  • MG @ 3…. Are you hinting that the banks may be more unstable now than late last year when things looked really spooky?!?

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  • I took all my money out of my bank today, the day it admits it needs £12bn new funding.

    The period between now and when the price of money corrects back to what it should be is going to be bizarre.

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  • mountain goat says:

    Bluebeach- personally i am more concerned than I was a year ago when I started stockpiling some food. Stock markets are near their November lows and safe havens are being sought. In some ways government guarantees have calmed things down. But all they have done is transfered risk onto the sovereign. There is no solution in sight despite it being obvious to all how bad things are for months now. All they can think of is one failed stimulous after another, zero IR, QE etc, making the problem more and more critical. No government is prepared to face what Iceland already has had to. The corrupt fiat money game is over. If things get nasty again there is no big bro to bail out the banks anymaore. They better come up with a new reserve currency soon or the markets will do it for them by a world wide financial system collapse. If the G20 do announce a new reserve currency imagine the collapse in value of GBP and USD?

    I felt it prudent to open an account with GoldMoney this weekend. They have independent auditors to guarantee their gold is not lent out for profit. You can keep your money there as cash, not needing to hold it in silver or gold. This means if there is a imminent collapse you can switch to gold instantly. You can pay others with an account in “goldgrams” so it functions as a financial system more than an investment vehicle.

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  • i think anyone with large cash reserves should seriously consider purchasing SOME gold via bullionvault or goldmoney

    also have a look at some of the articles on here http://www.professorfekete.com/articles.asp

    pretty good read!!

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