BoE to start printing money

Graham_Devon

mewbie wrote: »

Yes. But I am also making a point by arguing from the opposite angle. It amuses and educates me.

Well you had me fooled up until that post! :o

mewbie_2

Graham_Devon wrote: »

Well you had me fooled up until that post! :o

I should have kept it going. But I wanted you to love me rather than spend all evening winding you up.

Wookster

Graham_Devon wrote: »

Ask a Zimbabwean.

I still have a Zim passport.

Mewbie, the point is if you don't increase the goods available then you have more money chasing the same goods, ergo the money is worth less. The problem with inflation is that its out of the bottle its really hard to put back in... and in classically low inflation countries like the UK, 10% would be extremely damaging with long lasting effects.

There isn't a time when QE has been used and has had beneficial effects, or has there... or can anyone name a time when it has?

StevieJ

Graham_Devon wrote: »

If Mr King is saying it's creating money, I'm pretty sure we can go along with that.

Yes it is creating money to replace money that has disappeared i.e. credit.

StevieJ

Wookster wrote: »

I still have a Zim passport.

Mewbie, the point is if you don't increase the goods available then you have more money chasing the same goods, ergo the money is worth less. The problem with inflation is that its out of the bottle its really hard to put back in... and in classically low inflation countries like the UK, 10% would be extremely damaging with long lasting effects.

There isn't a time when QE has been used and has had beneficial effects, or has there... or can anyone name a time when it has?

I possibly can but you have me on ignore :rotfl: Actually this thread has morphed into a reasonably civil one

mewbie_2

Wookster wrote: »

Mewbie, the point is if you don't increase the goods available then you have more money chasing the same goods, ergo the money is worth less.

But Wookie, here's the rub. With the extra money available you can buy more goods. So they don't need to go up like you said about ergo and that.

tartanterra

mewbie wrote: »

How can a tenner be worth three quid? What happened to the other six quid?

Mewbie, your a star!:rotfl:
Lightened up the thread somewhat.:dance:
10 out of 10, mate!:D

lostinrates

tartanterra wrote: »

Mewbie, your a star!:rotfl:
Lightened up the thread somewhat.:dance:
10 out of 10, mate!:D

I seem to recall I got a bit sniffy with Mewbie when he first arrived,:o but how wrong I was; he's one of my favourites now.

Graham_Devon

StevieJ wrote: »

Yes it is creating money to replace money that has disappeared i.e. credit.

It hasn't dissapeared. It is owed. The asses ( EDIT: I meant to say assets, but asses seems reasonable!) on which it has been spent, now they are falling, are not worth the money the loans were worth. People therefore can't repay it.

But it certainly hasn't dissapeared.

StevieJ

mewbie wrote: »

But Wookie, here's the rub. With the extra money available you can buy more goods. So they don't need to go up like you said about ergo and that.

Mewbie, ask him why there is more money around if credit has been reduced