Printing money

stevetodd

I couldn't belive my ears tonight on the channel 4 news but it looks increasingly like the GOv might actually eventually do this. Wow! so if I am not over reacting we need to get out of cash!? Into what?

Wicked_witch

Actually physically printing money? As in our paper cash outweighing the actual gold reserve? How would that help???

Really2

Chocolate.

mr.broderick

stevetodd wrote: »

I couldn't belive my ears tonight on the channel 4 news but it looks increasingly like the GOv might actually eventually do this. Wow! so if I am not over reacting we need to get out of cash!? Into what?

Property?

Masomnia

Wine, first editions, star wars figurines in their original packaging... physical assets.

amcluesent

Bank is given the green light to print more money

The Bank of England was today given a licence to print more money to bail out the failing economy.

In a drastic new twist to the financial crisis, the Bank's monetary policy committee has been told it can increase the money supply if it believes more cash is needed to kick-start the financial sector.

The Chancellor today gave the go-ahead to a £50 billion asset purchase mechanism in which the banks can trade currently illiquid assets for cash so they can re-enter the credit and lending markets.

'Quantitative easing' is happening all right - big time!

Really2

amcluesent wrote: »

The Chancellor today gave the go-ahead to a £50 billion asset purchase mechanism in which the banks can trade currently illiquid assets for cash so they can re-enter the credit and lending markets.

I heared that on the radio today. Compleatly forgot to post anything. But is it not to help large corporates with the BOE buying assets?

pink_princess

This is being hinted at more regularly lately.It really is scary .Will we end up paying £5 for a loaf of bread?
I really feel this would be disasterous for our economy.
I know zimbabwe is an extreme but thats what i keep imagining if nthis is allowed to happen.

Kez100

Buy Turnips!

Signed Baldrick.

ManAtHome

Really2 wrote: »

I heared that on the radio today. Compleatly forgot to post anything. But is it not to help large corporates with the BOE buying assets?

Think they're only only buying "assets" (of potentially dubious worth) from the banks

The insurance thingy could benefit large and small corporates - something along the lines of "bank lends £2 billion to company, if they default bank is hit for £200 million, taxpayer picks up the other £1.8 billion" - will certainly discourage "irresponsible lending"...

Snooze

pink_princess wrote: »

This is being hinted at more regularly lately.It really is scary .Will we end up paying £5 for a loaf of bread?
I really feel this would be disasterous for our economy.
I know zimbabwe is an extreme but thats what i keep imagining if nthis is allowed to happen.

£5? Try more like £5,000 as our currency becomes worthless. Look forward to the introduction of a load of new bank notes in the next year or so, namely :

£100 note (replaces 1p coin)
£200 note (replaces 2p coin)
etc..
£200,000 note (replaces £20 note)
£500,000 note (replaces £50 note)

:eek:

Rob