More QE !!!!!

MoneySaverLog

When will this madness ever end, it's killing our interest rates and savers are suffering again :mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:

creeper1

It will end only with extremely high inflation. Maybe even hyperinflation. One way or another they will trash the pound sterling.

Huge debt is the UK's problem so they inflate their way out of it. Anyone holding sterling is getting done over big time.

There is no excuse though. This has been very well flagged by investment gurus.

Search "the UK is finished" on youtube.

acs_2

.....and the alternative method, to QE, which will aid in the recovery of the economy is.....?

IronWolf

It's not madness really, it is to discourage 'cash hoarding' to boost lending and the economy. As a 'cash hoarder' its going to be detrimental to you though.

oldvicar

I'm gonna 'hoard' harder. I've done enough to save the economy.

Fella

The MPC are playing it fast & loose with inflation. They have no idea how QE on this scale might affect inflation in years to come.

Anyone who is reassured by them saying it won't cause catastrophic inflation further down the line might want to reflect on the fact that the MPC has a truly awful record at predicting (or controlling) where inflation will be in the future & indeed as we speak it is more than 100% above where they predicted it would be.

The MPC have a very simple way of working:

If inflation is too low, keep rates low.

If inflation is too high, keep rates low because otherwise inflation will be too low in the future.

If asked for a prediction on what inflation will be, reply "about 2%" then simply adjust outwards the date it will actually be "about 2%" as far in the future as necessary.

Then when it's still higher than 2% indefinitely, blame other factors, other people or anyone other than themselves.

principa

The 2% target is arbitrary and really means wage inflation.

The £ has continually devalued. QE and low interest rates are the chosen method this time round, and is only bad for savers if they store too much of their wealth in sterling (not advocating going exclusively gold here though!).

alexanderalexander

MoneySaverLog wrote: »

When will this madness ever end, it's killing our interest rates and savers are suffering again :mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:

One of the main points of QE is to encourage people to use money for riskier assets (e.g. shares) which are then likely to get pushed up in price. Have you considered this as an option for your money?

oldvicar

Over recent years I've been stockpiling Index-Linked certificates as if they were going out of style.

I don't want to see runaway inflation, but fear I might.

Buy riskier assets (e.g. shares) ?? .... I took up some rights in Lloyds and see where that got me.

Glen_Clark

creeper1 wrote: »

There is no excuse though. This has been very well flagged by investment gurus.

Virtually every possible outcome has been 'well flagged by investment gurus'
A house price crash, A house price rise, a share price crash, a share price rise, a gold price crash, a gold price rise.......

Glen_Clark

acs wrote: »

.....and the alternative method, to QE, which will aid in the recovery of the economy is.....?

In case you hadn't noticed, QE is not leading to the recovery of the economy.
I would suggest
The Government to lead from the front by cutting their own jobs and pensions :whistle:
OK lets be serious;
Stop foreign aid as long as we have people dying of hypothermia and starvation on our own streets
Stop the increase in expenditure on Nuclear Arms
Pull out of Afghanistan, Iraq, Falklands, etc etc
Sack the planning committies and let the builders build
Bring unproductive land (eg Wickham Fen) back into production
Stop courses in non productive subjects and bring back apprenticeships and training in productive subjects like building, farming, and engineering
Stop the hundreds of millions wasted on workfare schemes, which only rearrange the jobs queue, leaving the same number of people out of work.
Simplfy the law and tax system so we don't have to waste so much on lawyers and accountants.
Bring alcohol taxes down to the same level as the rest of Europe to stop smuggling, and Britons going abroad to drink themselves silly.