BoE to "print money" confirmed!

lostinrates

Pound wrote: »

I don't really keep track of the currency. I just know that the Euro is worth a lot more than it was two years ago, what direction it's going now I'm not sure. I might buy some Zimbabwean dollars the way things are going.

The other way! Hence my post before!

Cannon_Fodder

luvpump wrote: »

Over £1200 for ever Man Woman & Child in the U.K, all to cover up the Banks colossal Mistakes !! Savers really are being Screwed ..

£75Bn sounds like a lot of money, but its only around a tenth of what they've already injected, one way or another, in bail-outs, re-capitalisations/schemes for this, schemes for that.

Its different as it avoids debt - but if we are best placed why do we need to avoid increasing debt?

They haven't exactly given the new £600Bn insurance scheme much time to see if would have freed up the bank's funds. If they had been quicker with that, they might have had 3 months to see its effect, while they were waiting for IRs to get down to allow QE.

What if the two, combined, really kick in? What can the effects be ?

Generali

Cannon_Fodder wrote: »

£75Bn sounds like a lot of money

It does because it is.

What's your share CF Old Chap? When do you plan to repay?

I don't mean to pick on you. It's more that my cousin is goimg to end up broke because of Mr Brown.

Pound

I guess it might get people spending money, people's savings will become so worthless that there will no point saving them.

The way the BoE is acting is like a losing punter at a roulette wheel desperately trying to win his money back by throwing even more money at the table.

Cannon_Fodder

Gen, I'm not sure...What would the criteria be? As its "created" money, we don't have to repay it, I thought ?!?

No mortgage, no debt, high savings, 50% chance of no job, but a good payoff...Where do I fit in?


Part of me is happier that its not borrowed, because we would spend forever paying it back, but part of me recognises that this is the ultimate stealth tax - we will never see it leaving our gross or net salary, or pension, or added to our shopping bill in a clear way like VAT...

Its just an insidious erosion of the value of cash, that most will not be able to notice/attribute.


What's the direct effect on your cousin? Lack of savings income, eating into capital?

kabayiri

Cannon_Fodder wrote: »

Gen, I'm not sure...What would the criteria be? As its "created" money, we don't have to repay it, I thought ?!?

I'd like to express a poorly structured analogy, and then people can shoot me down

Suppose you had a bank of CannonFodder, with it's own currency. You were able to draw upon this money to sustain your own lifestyle.

You have a good relationship with Mr RichArab in Dubai, and in good faith he has lent you money, duly deposited in your bank.

But now....you're a bit strapped for cash. So you decide to print another load of CannonFodder banknotes. Mr RichArab might not take to this too well. In fact, he writes down the value he places on your own currency. If you rely on trading with people like Mr RichArab in the future, this might not work out well for you in the long run.


This is all probably too simplistic however, and some mathematical model in the BoE will prove me wrong.

Pssst

Maybe those with cash wishing to avoid being ripped off by HM Gov should dump huge wadges of it into the stock market?

Cannon_Fodder

Pssst wrote: »

Maybe those with cash wishing to avoid being ripped off by HM Gov should dump huge wadges of it into the stock market?

That smacks a little too much of "if you can't beat them join them" in throwing good (or invented) money after bad...


yes, there are some cheap shares to be had out there relative to past historical prices and my pension continues to take a small punt in that direction, but isn't a lesson from the depression, among many, that "it may well not yet be all over and you could be broke by the time you realise it"...?

Pssst

Cannon_Fodder wrote: »

That smacks a little too much of "if you can't beat them join them" in throwing good (or invented) money after bad...


yes, there are some cheap shares to be had out there relative to past historical prices and my pension continues to take a small punt in that direction, but isn't a lesson from the depression, among many, that "it may well not yet be all over and you could be broke by the time you realise it"...?

You might gamble wrong and buy shares that still have some downside but then unless the company goes under,you will still have a share in it when it bounces back so they will only be paper losses. I've got some of them already but what can you do? just keep collecting the divis and what for the market to turn. Only buy essentials such as food,utilities and energy. I'm no expert though otherwise id be richer than i am.

Zagu

56 days ago......