Thursday, Jan 29, 2015

QE's dismal track record

Kylos Productions: Eurozone QE reignites global currency war

Shows the track record of QE in the UK, US and Japan in failing to generate growth, jobs and incomes or to prevent deflation and succeeding in inflating asset bubbles and capital income - mentions London property - and in aggravating global inequality and currency wars. In fact the QE effect on growth is negative since it redirects investment into financial speculation. It has led also to currency wars as others respond to the currency-weakening effect of QE (Switzerland's response catered for global investors using it as a tax haven and money-laundering shop). The dearth of real investment means that these wars are about countries stealing each other's growth/export trade when the pie itself is shrinking (including de facto devaluation within the €zone by cutting costs, i.e. wages).

Posted by icarus @ 12:56 PM (5179 views)
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7 Comments

1. icarus said...

I typed that last line as "€zone"

It should be the first article at http://www.kylosproductions.com/articles.html

Or directly at http://www.kyklosproductions.com/posts/index.php?p=263

Thursday, January 29, 2015 01:00PM Report Comment
 

2. icarus said...

Make that first URL -- http://www.kyklosproductions.com/articles.html

Thursday, January 29, 2015 01:05PM Report Comment
 

3. bidin'matime said...

Just returned from France, where all of a sudden we are knocking 25% off the numbers we see (to translate to £) and the effect is sobering: I'm tempted to buy somewhere over there just because it's all so much cheaper than here.

Which led me to think once again about those Eurozone investors who piled into London (etc) property in order to protect their capital - they too must be now looking around at all the much cheaper seeming property around them, now that rates are so much better for repatriating funds...

The French estate agents we spoke to said that prices are affected by the Sterling exchange rate, because Brits make up about 30% of the market. It follows from this that if you want to take advantage of the improved rates before they feed through into the prices, now is the time to move. And I'm sure that this fact is not lost on Europeans wondering if now is a good time to cash in their gains in London...

Thursday, January 29, 2015 02:13PM Report Comment
 

4. nickb said...

Good article, thanks for posting.

Thursday, January 29, 2015 02:23PM Report Comment
 

5. khards said...

Bankers finally got what they wanted. QE's not for the benefit of the general public and never has been.

Thursday, January 29, 2015 03:05PM Report Comment
 

6. debtserf said...

Even Mervyn King has just come out and said "We have had the biggest monetary stimulus that the world must have ever seen, and we still have not solved the problem of weak demand. The idea that monetary stimulus after six years ... is the answer doesn't seem (right) to me," he added.

So how come he never expressed such reservations when he was Queasing for England.

Thursday, January 29, 2015 04:06PM Report Comment
 

7. icarus said...

nickb - Lots of good articles by Jack Rasmus on the page I (finally) flagged up @2. Well worth reading some of them. He cuts through the technical meanderings of many of the 'quality' news articles.

Thursday, January 29, 2015 07:06PM Report Comment
 

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