Could the BoE ever go bankrupt?

moneywolf

STAGFLATION is what may be on the way,

oh !!!!!! look that up

lordgaino

a central bank cannot go bankrupt in its own currency because it can print as much as it likes to cover its own liabilities. of course the more you print the more the real world value of the currency goes down , but thats a whole different conversation.

Of course a country can default on foreign debt... and that is much more serious, but the chances of a AAA rated country like the UK doing that is almost inconceivable - even with our current government at the helm.

The reality is that if you are getting into this argument then you should have a stock of gold coins & some foreign paper money in the safe at home as a hedge against hyperinflation.

fimonkey

Hey I know that one!!! Stagflation's already been spoken about heaps on this board. ....

I can actualy understand why the UK would head to stagflation now, would it be the same with the rest of the worlds economy?

IS Stagflaion is what happened to Germany in the 20's? How did they get out of that?

Thanks for all your patience with my questions, I feel like a kid asking "why" "why" why" all the time. Glad none of you have yet snapped"because I said so" at me

moneywolf

fimonkey wrote: »

Really? What happened to Germany when they went bankrupt? How did they get out of it?

Also, if we went bankrupt, would we then be ripe for a takeover? Could another country then perhaps buy us out?

The germans went into a deep depression, with the public desparatley looking for a way out.

along came hitler with his twisted views & the rest is history

pumpndump

Could the B of E go bankrupt?

Possible, though highly unlikely.

However, since Gordon Mugabe has reintroduced such stalwarts as Nicolo Mandelsohn and Brain-of-Britain Blunkett into the cabinet, I'm not so sure...

Masomnia

amcluesent wrote: »

Clown to admit he was a 'silly billy' to sell all of England's gold for a pittance.

He sold half the gold reserves.

At worst we've missed out on £2billion. It's a lot, but it's not really going to bail out many financial institutions is it?

amcluesent

>How did they get out of it?<

Herr Hitler annexed Austria. Then it all went pear-shaped.

fimonkey

hmmm moneywolf..... I remeber from my long ago GCSE history lessons...

There was a depression in the 30's followed by WWII. The UK had money troubles in the 1970's (mentioned earlier on this thread, sterling was devalued? .. off to Wiki to look that one up) then we had the Falklands war....We had a house price crash late 80's, then the Gulf war....

Is there a relationship between war and money troubles? (other than the increase in xenophobia which happens during a recession which makes public opinion more amenable to a war)?... except aren't we already engaged in 'war' with afghanistan and iraq?

Off topic I know, would like opinions o the above, but would also like to stay on topic as I am learning HEAPS about the world (and I hope others reading this are too).

Thanks all.

fimonkey

amcluesent wrote: »

>How did they get out of it?<

Herr Hitler annexed Austria. Then it all went pear-shaped.

So the acceptance of Hitler adn fascism was directly related to Germany going bankrupt in the 20's? So it took near on 10-15 years for Germany to get out of it by attempting world domination? ... How does a country with no money attempt world domination?

If the UK went bankrupt, could another country buy us out?

TRUSt_NO_1_2

casper_uk wrote: »

No they control the printing press, need another £10 billion sir? No problem, i will just turn the machine on.

No printing presses required.
A click of a mouse will do just fine !

How many 0's did you want on the end of that number Alistair ?