QE = Devaluing the currency....

Loopgames

There's one fact that can't be ignored - the banks rely on ignorance from the masses that's for sure.

LOL @ QE not mean inflation!

Graham_Devon

wotsthat wrote: »

What a lovely black and white world you must live in.

Have you considered that the extra money may lead to extra growth which has the potential to make Sterling a more attractive currency and therefore strengthen?

That is precisely what the BOE DON'T want. They want to help exports and therefore manufacturing.

I understand this is more an argument over twisting words, but you'll find what I said, is exactly what Mervyn explained. So your issue is with him.

What are you arguing? Other than arguing with me for the sake of it? Are you arguing QE doesn't provide dilution to the money already in circulation as it seems so.

Whatever I say, you will find a way of disagreeing, it isn't new, but it's spoiling threads.

geneer

There's already a QE thread Hamish.
But that probably does tick all the Dull Troll boxes.

the_flying_pig

I reckon that other countries have seen that we want/need/are making more sterling, realised that it must therefore be good !!!!, and are trying to get on the bandwagon. Supply and demand, that's all there is.

grimsalve

Possibly a dumb question but how come Mervyn King is in charge of the economy? I thought that's what we had a chancellor of the exchequer for?

wotsthat

Graham_Devon wrote: »

That is precisely what the BOE DON'T want. They want to help exports and therefore manufacturing.

I understand this is more an argument over twisting words, but you'll find what I said, is exactly what Mervyn explained. So your issue is with him.

What are you arguing? Other than arguing with me for the sake of it? Are you arguing QE doesn't provide dilution to the money already in circulation as it seems so.

Whatever I say, you will find a way of disagreeing, it isn't new, but it's spoiling threads.

The BoE don't want growth - come on this is getting silly now.

There are other reasons why it might not lead to a devaluation in that further QE activity is anticipated in other countries. Also the Maastricht Treaty doesn't allow EU members to fund deficits with QE which is why the BoE buys government bonds. They need to have a mechanism to sell them back to the market during recovery - maybe this is anticipated as well (at some distant point in the future).

I was arguing that QE doesn't have to automatically lead to currency devaluation. You've been given clear examples of, differing probabilities, circumstances why currency doesn't have to devalue.

You said it was "cast iron" that sterling had to be devalued. I wasn't twisting anything - I took cast iron to mean 100% certain which it isn't.

nearlynew

grimsalve wrote: »

Possibly a dumb question but how come Mervyn King is in charge of the economy? I thought that's what we had a chancellor of the exchequer for?

The bank is in charge because they issue and control the money supply.
The politicians are merely puppets, which is why after all these years of different parties "in charge" nothing has changed.

As long as we allow this situation to continue the bank will be stealing our money through inflation and various parties will continue squabbling, boasting of minor achievments but achieving nothing.

Money reform is ultimately the only solution to our problems.
But this will never happen while we have liars and thieves in charge.

Politicians either know this and are hiding it.
Or they don't know and are stupid.

Graham_Devon

wotsthat wrote: »

The BoE don't want growth - come on this is getting silly now.

It is getting silly and very tiresome.

I said they want to help exports, and manufacturing, and a lower pound helps this.

I never suggested, stated, or even insinuated that the BOE do not want growth. This thread is about the pound and QE, therefore that is what I am talking about.

Neither did I suggest it was a cast iron guarantee that sterling needed to be devalued. I said it's a cast iron guarantee that QE = inflation. It's an inflationary measure. The BOE state this them very selves, but you will find what I haven't suggested, or what I havent said to argue until you are blue in the face that I am wrong.

This twisting and confusion is what all these arguments consist of. You follow me around, doing the above.

wotsthat

Graham_Devon wrote: »

It is getting silly and very tiresome.

I said they want to help exports, and manufacturing, and a lower pound helps this.

I never suggested, stated, or even insinuated that the BOE do not want growth. This thread is about the pound and QE, therefore that is what I am talking about.

This twisting and confusion is what all these arguments consist of. You follow me around, doing the above.

Nice tangent.

Is it cast iron that QE leads to currency devaluation or not? That's what you said.

geneer

Graham_Devon wrote: »

It is getting silly and very tiresome.

I said they want to help exports, and manufacturing, and a lower pound helps this.

I never suggested, stated, or even insinuated that the BOE do not want growth. This thread is about the pound and QE, therefore that is what I am talking about.

Neither did I suggest it was a cast iron guarantee that sterling needed to be devalued. I said it's a cast iron guarantee that QE = inflation. It's an inflationary measure. The BOE state this them very selves, but you will find what I haven't suggested, or what I havent said to argue until you are blue in the face that I am wrong.

This twisting and confusion is what all these arguments consist of. You follow me around, doing the above.

Wotsits is hugely tedious. He's quite entertaining though. Once you suss him out he drops the attempts at pedantry and strawmen and simply follows you around making inane irrelevant comments.
He's like a fortune cookie. You never know what kind of uninteresting statement he's going to make next.
He certainly fails to keep me on my toes thats for sure.