BoE to start printing money

Graham_Devon

Is that it? Anything else you want to say to completely avoid answering your own inaccurate statement?

Are you going to actually answer it after x amount of insults? Or we just on a continuous insult loop?

chucky

Graham_Devon wrote: »

Is that it? Anything else you want to say to completely avoid answering your own inaccurate statement?

Are you going to actually answer it after x amount of insults? Or we just on a continuous insult loop?

<<<<yawn>>>> you're getting very boring now
i now see why you have so many posts... doing what you're doing now... i told you here
http://forums.moneysavingexpert.com/showpost.html?p=18968617&postcount=60

chucky wrote: »

'Quantitative' refers to the money supply; 'easing' refers to reducing the pressure on banks. A central bank can do this by buying government bonds (Treasury securities in the United States) in the open market, or by lending money to deposit-taking institutions, or by buying assets from banks in exchange for currency, or any combination of these actions."

i've explained it and still it doesn't sink in, i give you some google links but nothing.
it was from wiki, so what - it tells you exactly how it works; i can change the words for you if it makes it easier. where would you like the info from, maybe from http://www.diagnosis2012.co.uk

would you appreciate it more if it was from some kind of site like that?

StevieJ

Wookster wrote: »

QE is something that has been used before, but never without detrimental effects (if someone would like to point out I'm wrong here, please do so).

Article from 2001 re QE, does read like it was written yesterday but also suggests a possible positive outcome from QE

Pity you wont see my post
And the evidence of mounting monetary deflation is all around us. The CRB/Bridge index of industrial commodities is at a 15-year low. The producer price index reported last week showed a drop of 0.9% in a single month. And the US dollar is skyrocketing against most foreign currencies, prompting the chief financial officer of General Motors to petition the government last week to do something to weaken it, or threaten the international competitiveness of US manufacturers.
So it's time, once again, to learn from Japan. To learn from their mistakes, and learn from their solutions.
After all, truth be told, they got the idea of quantitative easing from us! We used it right here in the US of A in August, 1982 when Fed chairman Paul Volcker printed billions to buy peso-denominated bonds to bail out US banks from the Mexican debt default crisis. That ended a deflation as severe as the one we're facing now, and -- in hindsight -- can be seen as the shot of the starter's pistol that set off the great bull market of the 1980s and 1990s.
It worked then, and it will work now. In Japan, and here in America.
http://www.capmag.com/article.asp?ID=1021

Tim_Nicholas

Which ever way you look at it, IMO Printing Money or QE are the same.

Pound will de-value... Just a question of how much.

All the government will do is magically make more numbers appear in the governments bank account...

StevieJ

Tim_Nicholas wrote: »

Which ever way you look at it, IMO Printing Money or QE are the same.

Pound will de-value... Just a question of how much.

All the government will do is magically make more numbers appear in the governments bank account...

But if the QE is replacing credit that has been withdrawn will the money in circulation not remain the same, if other countries also use QE would this not leave the effect on the pound neutral?

ad9898_3

I still ask the question, 'will there be wage rises' if we use QE, if not (and I doubt it with the current state of the economy), who actually is going to benefit ? I'm not trying to be smart, it's a genuine question if anyone can answer it.

Graham_Devon

ad9898 wrote: »

I still ask the question, 'will there be wage rises' if we use QE, if not (and I doubt it with the current state of the economy), who actually is going to benefit ? I'm not trying to be smart, it's a genuine question if anyone can answer it.

I think in this first phase of QE, only the government and banks will benefit. They will say we will benefit, as it means loans will be available again, as credit will be available again. But I'm sure they have said that twice already, once when putting £37bn of our money into the banks.

It really depends how far they go. But there will most certainly be losers in this first phase if the pound devalues, which it has a high chance it will. And that's all of us lot who have to pay for imported goods such as fuel, domestic energy and food, which will all go up if the pound devalues again. Just my humble opinion.

passau91

StevieJ wrote: »

But if the QE is replacing credit that has been withdrawn will the money in circulation not remain the same, if other countries also use QE would this not leave the effect on the pound neutral?

There's a thought, what would happen if all currencies went into a short freefall - I doubt they would all decline at the same rate. BTW, are any currencies still on a gold-standard?

chucky

ad9898 wrote: »

I still ask the question, 'will there be wage rises' if we use QE, if not (and I doubt it with the current state of the economy), who actually is going to benefit ? I'm not trying to be smart, it's a genuine question if anyone can answer it.

i don't think anyone will really benefit (except that technically debt is reduced) - it's a second to last resort situation that the government has to make.

people will call it the last resort, but the last resort is physically printing money and increasing the physical money supply, what M0 is; that's Zimbabwe style. this is the difference between QE and printing money.

Graham_Devon

chucky wrote: »

i don't think anyoine will really benefit (except that technically debt is reduced) - it's a second to last resort situation that the government has to make.

people will call it the last resort, but the last resort is physically printing money and oncreasing the physical money supply; that's Zimbabwe style. this is the difference between QE and printing money.

QE is increasing the money supply.

The whole point is to take the bad debts, make them dissapear so more money can be lent.

That IS increasing money supply. It's increasing it by making more money avaliable to the public. Money that is not available to you now, may be available to you after the QE measures.

I just personally think that, just like the bailouts, the banks will not lend, as they have shown after the bailouts.