Monday, August 10, 2009

How to increase public & national debt with no benefit to UK economy

What RBS's results say about QE

If you want to know why quantitative easing may not be working - in the sense that it hasn't led to a conspicuous increase in lending - this morning's financial results from Royal Bank of Scotland give a pretty good clue.

Posted by hpwatcher @ 12:23 PM (963 views)
Please complete the required fields.



3 thoughts on “How to increase public & national debt with no benefit to UK economy

  • What would have happened to the gilts market without QE? The implication seems to be that there would be less gilts bought with QE funny money hence the price of debt would have risen. QE may have bought the government some time but it has also allowed important and painful budget decisions to be postponed so we will be in an even worse mess when we start trying to balance our budget again. Savers beware! You need some way to protect yourselves.

    Reply
    Please complete the required fields.



  • vacuouspolitician says:

    “Savers beware! You need some way to protect yourselves.”

    …any ideas…?

    Reply
    Please complete the required fields.



  • At the moment, we are buying back gilts from investors. So, how keen will the investors be to buy up UK gilts once QE stops?

    Will the UK have to jack up interest rates to maintain their appetite? Its a question for the new Conservative administration…what a mess to sort out!

    Surely Gordo can’t last another 6 months?

    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Your email address will not be published.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>