Wednesday, October 19, 2011

New excuse for massive QE2,3,4,5,6,7,8,9,10

Some Euro Countries Bankrupt, King Warns

The Governor of the Bank of England has warned that "time is running out" for the UK and global economy. Sir Mervyn King told bosses the "recovery in our trade position is at risk of stalling" because of the latest economic problems. In a speech to the Institute of Directors in Liverpool, he said the eurozone debt crisis was delaying the UK's return to economic normality. The governor explicity stated that some European countries and banks are bankrupt during the address on Tuesday night.

Posted by mark @ 11:34 AM (4318 views)
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13 thoughts on “New excuse for massive QE2,3,4,5,6,7,8,9,10

  • He is going to inflate and inflate and inflate – no other choice really. I just wish he would be a bit more open about it, rather than issue all the daft propaganda.

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  • I don not believe any information that is issued from the BOE or the government.

    BOE have no creditability, this will be shown by 1st January when inflation has not doped back to 2%.

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  • BOE have no creditability, this will be shown by 1st January when inflation has not doped back to 2%.

    They have already been through that. There are 10 examples over the past 2.5 years where exactly that has happened.

    UK Inflation Accelerates to CPI 5.2%, Bankrupt Britain’s Stealth Debt Default Continues

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  • He’s right. He’s actually willing to say what the Eurozone leaders won’t say. Greece is clearly bankrupt, there’s no question about it. Portugal and Spain may well be too. Governments and banks need to go bankrupt. Lenders need to be taught a lesson: don’t go lending money to people who might not be able to pay it back. Bail out ordinary savers, not bankers.

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  • “But he did suggest families facing a squeeze to their household incomes should see some respite from high inflation next year.”
    Yeah thanks for that nugget Merv, prices have already inflated and for many the damage is done. It’s like all this talk of house price “stability”, we needed stability when prices were reasonable, it’s only when they are out of reach they want them stable. What good is that? Make sure they get to a price where nobody can afford one and then have controls to keep them there – muppet.

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  • So if all these dodgy little countries do default, this will cause mass deflation and cash (not bank balances) will become much more valuable as peoples savings above the government bank guarantees are written off.

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  • khards,
    If they default, the central banks will stand ready to print more money to stave off the threat of deflation. Freshly-minted money will be used to guarantee deposits.

    That’s for the Eurozone. Meanwhile in Britain, the BoE will just quietly inflate down our debt.

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  • I thought most of our debt was in foreign currencies – how does inflation change that?

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  • I’m sure Merv will be retiring in the Blair/Browneque style to which we have all become well and truly accustomed to.

    Am I bothered? Speak to the hand.

    Over to you now Dick!

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  • On deposit guarantees – apparently if you read the small print on the UK one it says that the guarantee may take up to 20 business days to pay out. So it may be an idea to have 1 month’s worth of cash ready. Or some Kruegerrands buried in the garden.
    N

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  • But he did suggest families facing a squeeze to their household incomes should see some respite from high inflation next year.

    Isnt that what he basically has said for the last few years, He has been harping on about deflation coming, but its just not a reality. Wake up Mr King and smell the roses the biggest risk to our economy now is that everybodys income is going to be spent of the essentials, how does an economy based on importing grow if its internal market has no spare cash. Inflation is causing any recovery to happen in the UK as people dont want to spend anything cause they fear they will need the money later when inflation continues for several years at this rate.

    Also with the news that benifits and pensions linked to inflation how is that going to help the government get out of its debt crisis.

    Kind of Ironic, only those out of work will keep up with inflation, the hard working joes of the country will be left behind.

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  • nickb

    i somehow doubt if a bank failed and deposit guarantees was triggered it would be paid in less than several months, give anyone in power or in one of our wonderful bodies a truck load of booze and ask them to organise a pi$$up they would still fail, while employing consultants on how to organise it and discussing how to do to it..

    lol

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  • “The governor explicity stated that some European countries and banks are bankrupt during the address on Tuesday night.”

    Not sure how it works in other countries, but I thought it was against the law over here to continue trading when insolvent, and doing so means stiff penalties, perhaps even prison, for offenders.

    Almost funny really, that law exists to protect customers and creditors – some of whom would be banks. And yet, they’re the ones who are bankrupt.

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