Sunday, June 3, 2012

Right on cue. Global collusion to fight deflation continues.

Bank of England to consider £50bn stimulus for economy

Bank of England policymakers may opt to inject a further £50bn of stimulus into Britain’s ailing economy this week, according to leading economists. "Up until now we had been arguing the Bank would sanction no more QE after ending the previous programme last month. But conditions have worsened." "The MPC cannot ignore this weaker news and we have thus changed our call for £50bn more quantitative easing to be announced at the June 7 policy meeting," he said. Michael Saunders of Citigroup was of the same view. “On balance, we forecast the MPC will expand QE by another £50bn at the June meeting,” he said.

Posted by khards @ 11:21 AM (2184 views)
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6 thoughts on “Right on cue. Global collusion to fight deflation continues.

  • Jim Sinclair keeps claiming QE to infinity and does so on virtually every piece of news he comments on these days.

    It seems like a nutty proposition to me but when we have cretins at the BoE reaching for the print button at every opportunity then one does have to wonder is Sinclair is ahead of the curve here.

    It strikes me the last few rounds of QE have simply been used to purchase new debt created by the debt junkies we call a government, who are simply too inept to tackle our debt addition in any meaningful and lasting way.

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  • It strikes me the last few rounds of QE have simply been used to purchase new debt created by the debt junkies we call a government, who are simply too inept to tackle our debt addition in any meaningful and lasting way.

    That is the job it is intended to do; keep interest rates [artificially] low.

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  • “the debt junkies we call a government” – the commons looks like a Justin Bieber party. We’re electing child prodigies? Wunderkinds? The place needs a PG rating.

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  • general congreve says:

    Hands up who believed the BoE’s ruse that they didn’t think they needed any more QE? Think I only read an article this week with one of the MPC saying QE was well off the table.

    They didn’t have me fooled for one minute. I believe the whole QE to infinity thing (in the US and UK anyway). What is the alternative? Let the whole ponzi collapse? Because growth sure isn’t coming to the rescue this side of 2030.

    Of course, where QE is most sorely needed right now is in the EU, if the global debt ponzi isn’t to start collapsing from there within weeks, if not days (personally I think we will see big things happen this week). To print or not to print, that is the question for Germany, and they don’t seem keen. Going to be interesting. I rather think this QE is to be a handy 50Bn buffer to plug initial losses from a Greek or Spanish default. If the EU goes full retard shortly, expect much more QE in a very short space of time. Got to keep those banks in clover, even if it means massive currency devaluation and ongoing, ever increasing, inflation.

    Anyway, on the positive side, good on BOE, they seem intent on making me as much profit as they possibly can.

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  • The markets I’m watching don’t really seem to care too much about what BOE does…..of course, the US is a different matter entirely….

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  • Havent they already admitted that QE1 and QE2 didn’t work? So why QE3?

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