Tuesday, Sep 22, 2009

Stock up on baked beans as here comes inflation!

Daily Telegraph: Pound slides again as markets enter Bank of England-fuelled 'bubble' stage

Markets are now entering a bubble phase. However, the bubble is almost entirely dependent on the BoE quantitative easing (QE) policy, through which it is printing £175bn and pumping it into the system by buying Government debt. At some point QE will have to come to an end but, until it does, this bull market is sponsored by HMG. I'm sceptical about the market recovery given the fiscal environment we are in. Public spending is falling, consumer spending is down and unemployment will rise (as well as taxes). Many central banks have taken on a QE policy however, BoE has committed to creating and spending more than any other! Citigroup said yesterday that sterling would drop to parity against the euro in the coming months. Falling pound = higher food and energy costs!

Posted by who stole my pension? @ 08:23 AM (1425 views)
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11 Comments

1. alan said...

""Markets are now entering a bubble phase [which may last] until the end of the year," said Crispin Odey.

It will last as long as it takes to get to the general election, IMHO. The government wants to keep things looking nice. The pound will surely drop and inflation will take a few months to flow through the system.

From the article...."The bank's analyst Michael Hart said: "Tight fiscal policies and easy money is about as negative a policy mix as it is possible to get for the currency and we expect sterling to exceed parity with the euro."

Tuesday, September 22, 2009 09:16AM Report Comment
 

2. happy mondays said...

Will this raise interest rates ?

Tuesday, September 22, 2009 10:13AM Report Comment
 

3. krustyatemyhamster said...

It'll only create more bubbles as investors flock to baked beans.

Tuesday, September 22, 2009 10:32AM Report Comment
 

4. mr g said...

But surely increased baked bean consumption will mean a poorer diet for most people, leading to health problems thereby putting further pressure on the NHS, which in turn will need more staff and public money throwing at it?

Could this is be a scurrilous plan by Crash or Badger to fight unemployment by creating more public sector non jobs such as flatulence fighting facilitators?

Tuesday, September 22, 2009 11:06AM Report Comment
 

5. a saver said...

Got to give GB his due for making my NZ dollars worth so much against the £ -presently 44.3p!
My gut feeling is that NZ is way better placed than the UK over the next few years, due to many factors including the fact that they export food. It's tempting to take some profits now, anyone any thoughts?

Tuesday, September 22, 2009 11:09AM Report Comment
 

6. bystander said...

"At some point the QE will have to come to an end but, until it does, this bull market is sponsored by HMG and everyone should enjoy it."

....aren't the last few stages of a bull market shown with investor euphoria, well this is definitely euphoric and all sponsored by US, not bl**dy HMG. These Hedgies and this government really are Ars*holes.

Tuesday, September 22, 2009 11:52AM Report Comment
 

7. contrails are not a conspiracy (formerly npnh) said...

mr g said... "But surely increased baked bean consumption will mean a poorer diet for most people, leading to health problems thereby putting further pressure on the NHS, which in turn will need more staff and public money throwing at it?”

We could invent a methane capture system for the “Baked Beaners” and use it to power the NHS.

That's a Win-Win if ever there was one.

Tuesday, September 22, 2009 12:15PM Report Comment
 

8. mr g said...

@7 said: "We could invent a methane capture system for the “Baked Beaners” and use it to power the NHS"

You're a genius, contrails are not a conspiracy!!

You've hit on a superb idea which should be pursued further, preferably with a Public Enquiry first, so more public money can be wasted.

But then, after the NHS, let's consider applying it to the public sector as a whole.

Tuesday, September 22, 2009 12:34PM Report Comment
 

9. hpwatcher said...

HAHAHAHAHAHHAHAHAHAHAHAHAHAHAHAHAHAHHAAHHAHAHAHAHAAHA

Tuesday, September 22, 2009 01:13PM Report Comment
 

10. jack c said...

Is this thread for old far*s only or can anyone old windbag join in?

Tuesday, September 22, 2009 02:43PM Report Comment
 

11. str 2007 said...

Beinz Meinz F*rtz

Tuesday, September 22, 2009 05:37PM Report Comment
 

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