Further Quantitative Easing (QE3)

Ark_Welder

meatandtwoveg wrote: »

Money backed by an asset, money backed by debt is money, printing money cannot and will not create wealth, see Zimbabwee.....

Zimbabwe created money to pay the wages of soldiers and other 'workers' so it had no way to recoup that outlay - the same mistake as was made in Germany in the 1920s. Gilts can be sold and/or redeemed by the BoE and that money can then be cancelled, therefore removing it from circulation. That is the difference.

meatandtwoveg

Ark_Welder wrote: »

Gilts can be sold and/or redeemed by the BoE and that money can then be cancelled, therefore removing it from circulation.

Thats the funniest comment i have read on here ever:beer:

You never heard the term "once you print you can't stop"

Why should they stop, the currency is down 40%, they can't raise taxes, they are already at peak tax, peak debt, peak debt servicing at abnormallly low interest rates; the only thing is "cuts" oh yeh these cuts...We are spending £180 billion a year we do not have, it ain't falling either. Sooner or later they will be printing just to pay the cumulative annual interest on the debt mountain if they do not print the spiral will just get so big, bang......Your in denial if you think printing money is the way out, if it were the case why is not all countries just print hey. Why don't me and you just print, printing dilutes the value of whatever is printed, and printing is the endgame, close to what i call the collapse.......

So how will this recovery come about, tell me, i am interested..

Ark_Welder

meatandtwoveg wrote: »

blah...blah...blah...

Perhaps you should take it to the Debate thread. You'll find more of your kind over there.

meatandtwoveg

Ark_Welder wrote: »

Perhaps you should take it to the Debate thread. You'll find more of your kind over there.

Now doctoring then quoting my previous post with something i did not script is an opt out........:cool:

Good luck with your paper investments.......:p

sabretoothtigger

Ark_Welder wrote: »

Zimbabwe created money to pay the wages of soldiers and other 'workers' so it had no way to recoup that outlay - the same mistake as was made in Germany in the 1920s. Gilts can be sold and/or redeemed by the BoE and that money can then be cancelled, therefore removing it from circulation. That is the difference.

The money went out on the streets much faster in Zim. So it was very obvious it was bad policy
We have cheap money filtering through many layers before it gets to the streets and isnt nearly as bad so I agree with you but otherwise its still a failure of an idea.

I would think otherwise if they were currently selling bonds into the current strength derived from Euro problems. Instead they are still buying them up as part of a new program


We will lose money on QE because they cannot sell back the bonds for the price paid. I doubt that or they may never even try, the FED is reinvesting everything back in instead of neutralising.

Not sure what ECB is upto but Im told its a form of QE they cannot afford to reverse it

Ark_Welder

sabretoothtigger wrote: »

The money went out on the streets much faster in Zim. So it was very obvious it was bad policy
We have cheap money filtering through many layers before it gets to the streets and isnt nearly as bad so I agree with you but otherwise its still a failure of an idea.

I would think otherwise if they were currently selling bonds into the current strength derived from Euro problems. Instead they are still buying them up as part of a new program


We will lose money on QE because they cannot sell back the bonds for the price paid. I doubt that or they may never even try, the FED is reinvesting everything back in instead of neutralising.

Not sure what ECB is upto but Im told its a form of QE they cannot afford to reverse it

Why would international investors have bought £28billion of gilts in October and November if they believed that their capital would be lost through currency devaluation - which would result from high inflation? Why would they buy into low yields, for the same reason?

Google Gilts draw record numbers of global investors from the FT.

meatandtwoveg

Ark_Welder wrote: »

Why would international investors have bought £28billion of gilts in October and November if they believed that their capital would be lost through currency devaluation - which would result from high inflation? Why would they buy into low yields, for the same reason?

Google Gilts draw record numbers of global investors from the FT.

Are you that naive....Store of liquidity, certain to get 100% back but at a loss to infation, instead of not certain to get 100% back and also at a loss to inflation....You choose.....:rotfl:

Also, tell me where there is yield, for billions and billions but also like above certain to at least get it back.....GILTS are a store of wealth for the big boys...How many people do you know, get back less than they paid in.........Its why the average FA don't like cash, no fee's in it for them is there.....They love managed balanced funds, nice fee's, now with low yields, its no brainer....QE is killing yield...

Banks being forced to hold GILTS also creates demand...

Its why the average managed investments, and pension funds, any funds are losing money, after fee's, low yields, heaving in GILTS, equities, right.....Tell me where you can invest to beat real inflation....Not the peddled figure, real costs....;)

Ark_Welder

meatandtwoveg wrote: »

more blah... blah...blah...

Yawn......

Glen_Clark

Ark_Welder wrote: »

Why would international investors have bought £28billion of gilts in October and November if they believed that their capital would be lost through currency devaluation - which would result from high inflation? Why would they buy into low yields, for the same reason?

Google Gilts draw record numbers of global investors from the FT.

Because the BoE has indicated they are going to print more money to buy them..So they expect to sell them to the BoE for an even higher price than they paid for them.

meatandtwoveg

Glen_Clark wrote: »

Because the BoE has indicated they are going to print more money to buy them..So they expect to sell them to the BoE for an even higher price than they paid for them.

Yep easy free money, printy printy, watering down all your lifes savings, get them spent and help the economy....:cool: