Thursday, March 12, 2009

Unintended effects?

Bank 'prints' £2bn more cash - but has it all gone abroad?

''Much of the fresh money created by the Bank of England yesterday could have leaked abroad, a City expert has warned. Former Bank of England official Danny Gabay said the biggest participants in the unprecedented quantitative easing scheme were likely to have been foreign investors''

Posted by hpwatcher @ 09:26 AM (1184 views)
Please complete the required fields.



8 thoughts on “Unintended effects?

  • Interesting comment at the bottom of the page:-

    ”……YES I BET IT HAS!! IN WHO’S SUITCASE!!
    LOOK, throwing all these billions around will not help!! WILL SOMEONE PLEASES STOP LABOUR!!!
    PUT THE CASH into NEW INNOVATION! NEW USEFULL PROJECTS!!
    May I repeat again! there are many old unused railway tracks around our country, employ the large numbers NOW on the dole,cutting back clearing tracks, painting, building and in general restoring our lines. Bringing back the railways would help reduce public traffic and HGV’S on our roads as wellas give many people skilled and non-skilled a job, there sat at home NOW! waiting for work!!
    Also look at your town ! look on the ground! what do you see! Yes chewing gum! right, lets have some clean up teams not just for the dirty chewing gum but to clean our towns in general, they are the dirtiest I have ever seen!!
    LETS HAVE SOME ACTION LABOUR!!
    What about panels of inventive people scattered around our country, spinning ideas, all these things are tangable! not money wasted! ACTION NOW LABOUR!……”

    Reply
    Please complete the required fields.



  • “PUT THE CASH into NEW INNOVATION! NEW USEFULL PROJECTS! What about panels of inventive people scattered around our country, spinning ideas, all these things are tangable! not money wasted! ACTION NOW LABOUR!……”

    crunchy-I have said this also. Inventors are screwed by the very expensive patent costs. We need a competent body to asses these idea’s and help those inventors that are worth financial backing. We need to put back the GREAT in BRITIAN.

    A little Investing in the future of our country would be welcomed Mr Brown.

    Reply
    Please complete the required fields.



  • Its interesting to see that even this far down the line – even this far along, the problems are still being framed in terms of a solution that meets the proposer’s interests rather than the wider interest.

    The outcome of the initial auction suits the government down to the ground, because in proposing QE it was never their aim to get lending going, just to finance their own high spending.

    Reply
    Please complete the required fields.



  • Paul – correct.

    QE is a devaluation by another name, so foreign investors will ultimately lose out as Sterling falls. With around a third of Gilts owned overseas, it would be natural for the foreign investors to want to get out.

    The US mooted the idea of QE long before it was proposed here, but has not followed through.

    My guess is that the Chinese had a very important message for Mrs Clinton when she went there recently..

    ..and that message was – “don’t even think about devaluing the dollar, if you want us to keep on buying your debt”

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    This is wholly as to be expected – when Japan did this (zero interest rates and QE) all that happened was that all the money got invested aborad, hence JPY slid for six or seven years, until boucing back to where it started last Autumn.

    Reply
    Please complete the required fields.



  • stillthinking says:

    The Japanese slide was mitigated by buoyant demand for Japanese goods in a booming(!) global economy. I don’t think the slide in Sterling will be so pleasant. GB has already announced that the exchange rate is not targeted by monetary policy…
    gulp.

    Reply
    Please complete the required fields.



  • @hpwatcher,
    You wanted action, I’m sure NuLab can come up with a new policy which will never see an implementation – just an odd box tick on a FSA form, maybe.

    The country deserves better. Unfortunately, this government can only think of saving itself.

    Reply
    Please complete the required fields.



  • The country deserves better. Unfortunately, this government can only think of saving itself.

    They say a little bit of knowledge can be a dangerous thing…..in this case, GB’s expertise is going to prove disasterous for the UK.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>