Wednesday, October 31, 2012
The farce that is QE
The B of E has bought Â£32bn of the last Â£34bn debt issued. Hardly anybody else wants it so the government must print money to buy it or the yields would soar to reflect the risk. The B of E's Funding for Lending is a last desperate attempt to persuade people to borrow cheap money to buy ridiculously overpriced houses to try generate the only "growth" they know, i.e. house price inflation. If people refuse to take the debt slavery thrust down their throats with years of sub standard living due to servicing all that debt, them the game us up for them. There is only so much QE they can get away with before they have to stop printing and our interest rates will soar.