QE3 = £75bn

Really2

Graham_Devon wrote: »

I find this argument astonishing.

How can one be so blind.

yes, inflation fell, for a VERY short period.

But look what happened after. You appear to be asking how something can happen....when it's exactly what DID happen last time QE was introduced.

Oh dear here we go, toys go out as someone holds an opposite view.

QE was introduced last time to stop deflation caused by a global recession.
So if we have another global recession it should mitigate it falling in advance, avoiding contraction etc.
Come January if inflation is 4.5% in dec it will be around 3.4% if prices remain the same for the month.

As stated before we need inflation to grow at the moment, and a low £ keeps us trading (note after this we have hardly changed against our biggest market)

If you know it all , change career and gun for a post in the MPC.

Lets face it, they have done fairly well so far in keeping the UK going, it's just hard for them to get past the idiots thinking the cure to our ills is increasing rates to fight inflation and the economy will sort it's self out.

The problem is far deeper than inflation, fighting inflation will come after financial stability.
Without financial stability inflation would be much higher. Not that I expect you to grasp that.

Graham_Devon

Really2 wrote: »

Oh dear here we go, toys go out as someone holds an opposite view.

It's not an opposite view, and I'm hardly throwing toys out of the pram. Check our your language, and maybe re-think your position on who's throwing toys.

You were merely asking how something can happen, when it's exactly what happened last time.

I never said I know it all or any of the other gumf you have written. Just answering your question while at the same time being quite astonished you can pretend inflation will fall and can't possible rise because of a recession.

Really2

Graham_Devon wrote: »

It's not an opposite view, and I'm hardly throwing toys out of the pram. Check our your language, and maybe re-think your position on who's throwing toys.

What? I should my language?

Graham_Devon wrote: »

I find this argument astonishing.

How can one be so blind.

let's leave it there GD. I hold an opposing view to you and have set out my thoughts clearly.
You have quoted a few papers as they match how you think.

You don't like the decision today, but it was made for a reason by a bunch of people far more skilled in these matters than all of us on here.

Graham_Devon wrote: »

you can pretend inflation will fall and can't possible rise because of a recession.

Recession are by definition deflationary, the less you consume, the less you make, the less you earn, the less you spend etc. etc.
I wish Dopester was here.

Graham_Devon

Really2 wrote: »

What? I should my language?



let's leave it there GD. I hold an opposing view to you and have set out my thoughts clearly.
You have quoted a few papers as they match how you think.

You don't like the decision today, but it was made for a reason by a bunch of people far more skilled in these matters than all of us on here.

Too right I don't like it.

None of us will see any of the benefits from this, just like this time.

All we will see is a further reduction in our living standards, higher costs, and further failed targets by our leaders.

Brilliant...what's to like?

We got to reign all this in one day too....bravo. Can't wait. What's to look forward to? Maybe my next pay freeze? Or maybe the next increase in fuel costs? I'm quite excited about that.

ninky_2

pay off debts? sit back and watch inflation do it for you.......

cash is not king with that level of QE.

Really2

Graham_Devon wrote: »

Too right I don't like it.

None of us will see any of the benefits from this, just like this time.

Are you still working? do you still use a bank? do you still use £'s.
On what basis do you presume it had no benefit last time? that you are still in the same mess/situation for the last 2 years?

Ever thought it was to avoid a far bigger mess last time and you did actually benefit? (then again why am I asking?)

ninky_2

Really2 wrote: »

If the world economies are slowing down much like 2008, why are people worrying about inflation?

If the world goes back in to recession do people really think inflation will stay at 5% ish?

If consumption goes down so will prices, I think they have made an early move on the inevitable.

not all economies are slowing down.

Jennifer_Jane

Welfare benefit increases (perhaps?) and the State Pension annual increases are based on September figures. So, if there is inflation because of this QE (which there has to be surely), then someone has timed this to ensure that it's post September. That'll save the Country some money then - and put the really poor into a worse situation.

Really2

ninky wrote: »

not all economies are slowing down.

How many of those 12 were classed as the western world? 0?

If we can abolish the minimum wage and get 4 year olds to work again we may be able to replicate the good old days of the empire!!!!!

But one on the list is interesting, China? could anyone tell me what slowing Chinese growth reflects?

A wide range of indicators have raised fears of China's outlook, including GDP data released last week that showed Chinese GDP growth of 9.5 per cent in the second quarter, and a forecast of slightly more than nine per cent growth for the year, down from 10.4 per cent last year.

A Bloomberg poll of investors, analysts and traders found that 59 per cent of respondents felt China's GDP growth would be less than five per cent by 2016, while of those respondents nearly half expected GDP growth to fall below five per cent in two to five years,

bugslet

I lurk round these boards trying to understand the finance and economics talk but I've got stuck on the phrase from the telegraph blog...'monetisation of the deficit'. If someone could explain that bit, I'd be eternally grateful.

Sorry for the numpty question.