Debate House Prices


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MSE News: Base rate held and no further QE

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Former_MSE_Darryl
Former_MSE_Darryl Posts: 210 Forumite
in Debate House Prices & the Economy
"The Bank of England kept interest rates on hold at 0.5% today, despite growing pressure for more emergency support to aid the UK's faltering economy..."
Read the full story:
Base rate held and no further QE


OfficialStamp.gif
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Comments

  • DpchMd
    DpchMd Posts: 540 Forumite
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    Darryl,

    This is already being discussed here: http://forums.moneysavingexpert.com/showthread.php?t=4102849

    No need for the duplicate thread.

    Thanks.
    "Beware of little expenses. A small leak will sink a great ship." - Benjamin Franklin
  • The-Joker
    The-Joker Posts: 718 Forumite
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    MSE_Darryl wrote: »
    "The Bank of England kept interest rates on hold at 0.5% today, despite growing pressure for more emergency support to aid the UK's faltering economy..."
    Read the full story:
    Base rate held and no further QE

    OfficialStamp.gif

    Whoever said no further QE, I don't belive you.
    The thing about chaos is, it's fair.
  • Pincher
    Pincher Posts: 6,552 Forumite
    Combo Breaker First Post
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    The-Joker wrote: »
    Whoever said no further QE, I don't belive you.

    Well, QE isn't working any way. The money is not flowing into the general economy.

    I propose that the bank of England start a program of recruitment
    for hedonists, wastrels, rakes, reprobates, narcissists, gluttons and licentious womanisers. Like an intravenous drip, the money we give them will boost the economy straight away, unlike QE.
  • Mallotum_X
    Mallotum_X Posts: 2,588 Forumite
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    Pincher wrote: »
    Well, QE isn't working any way. The money is not flowing into the general economy.

    I propose that the bank of England start a program of recruitment
    for hedonists, wastrels, rakes, reprobates, narcissists, gluttons and licentious womanisers. Like an intravenous drip, the money we give them will boost the economy straight away, unlike QE.


    Where do i send my CV?
  • Pincher
    Pincher Posts: 6,552 Forumite
    Combo Breaker First Post
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    Mallotum_X wrote: »
    Where do i send my CV?

    Mervyn King "The Gov"
    Bank of England

    Two references from disreputable barflies or worse.
  • chewmylegoff
    chewmylegoff Posts: 11,466 Forumite
    First Post First Anniversary Combo Breaker
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    Pincher wrote: »
    Well, QE isn't working any way. The money is not flowing into the general economy.

    I propose that the bank of England start a program of recruitment
    for hedonists, wastrels, rakes, reprobates, narcissists, gluttons and licentious womanisers. Like an intravenous drip, the money we give them will boost the economy straight away, unlike QE.

    the money is flowing into the economy.

    QE works thus:

    bank A holds some gilts

    boe buys bank A's gilts using money it has created

    govt issues new gilts, bank A buys them with the money it received for the old ones.

    government uses money it has borrowed from bank A to pay for things e.g. salaries of !!!!less NHS middle managers.
  • RenovationMan
    RenovationMan Posts: 4,227 Forumite
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    WOW! An MSE bod ventured into the House Price ghetto to create a discussion thread for the wider MSE population. Wonders never cease!
  • purch
    purch Posts: 9,865 Forumite
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    Pincher wrote: »
    Well, QE isn't working any way. The money is not flowing into the general economy.

    As that is not the reason for QE, to say it isn't working is incorrect.
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • Treadstone2.0
    Treadstone2.0 Posts: 32 Forumite
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    purch wrote: »
    As that is not the reason for QE, to say it isn't working is incorrect.


    Whatever reason you think QE is for it still is not working. It never has every time through history when governments expand the currency supply exponetially it always ends badly, it will this time.
    House Prices 2007/08 £200K, Silver £5oz
    Ratio 40,000 oz to 1 house.
    2012 Fallen to £160K, Silver risen to £20 per ounce. So house/silver ratio fallen to 8000.
    Prediction for the end of the decade, will keep falling at current rate until 1000 oz or less valued same as average house.
  • RenovationMan
    RenovationMan Posts: 4,227 Forumite
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    Well we've not got deflation so I'd say QE was working ok.
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