We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The End of the Beginning for QE in the US...?
Comments
-
Wow - I had not realised until now - I will sell my house, liquidate all my assets and buy physical silver....thanks digger.
It's the right thing to do. I recommend using the silver to build a house with which you can then live in, saving on both accomodation costs and your bank vault fee.0 -
-
Diluting a fiat currency, by putting more in circulation, will have the same effect as putting copper in gold coins did in times past.Thrugelmir wrote: »In the current circumstances how?
Debasement has always led to inflation in the currency, and inflation in prices. Law of economics.
QE debases the currency. Simple as.
..._0 -
Yes.OffGridLiving wrote: »Do you understand what QE does?
Buys time, sugar rushes equities, and gives banks oodles of cheap insurance to cover against the bad debts they are hiding.
What's not to understand.
..._0 -
Diluting a fiat currency, by putting more in circulation, will have the same effect as putting copper in gold coins did in times past.
Debasement has always led to inflation in the currency, and inflation in prices. Law of economics.
QE debases the currency. Simple as.
..._
The money supply has been falling though.
https://timetric.com/index/money-supply-m4-boe/0 -
-
Diluting a fiat currency, by putting more in circulation, will have the same effect as putting copper in gold coins did in times past.
Debasement has always led to inflation in the currency, and inflation in prices. Law of economics.
QE debases the currency. Simple as.
..._
It's not that simple though.
QE increases the narrow money supply (M0) to partially counteract a decrease in the broad money supply (M4).
Total money in circulation has fallen markedly during the QE years, despite QE, as QE was never designed to increase the money supply but rather to partially offset the fall in the money supply.
There are fewer units of GBP in existence today than there were before QE added 375bn to the money supply.
QE has demonstrably not "diluted" the amount of money in existence.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
That link shows a massive increase in money supply, not a reduction. Most of that money has not been put into circulation, just sitting in bank vaults.
The propaganda may be saying QE is for lending out to business, reality is that nobody thought to tell the banks that. The credit crunch goes on.
The historical evidence, that increasing money supply leads to inflation in both money and prices, is beyond question. Difference today is that the quantities of government stimulus are way beyond anything seen before. Once the loot sitting in the banks, plus QE to come, is dropped on the high street, the consequences will be enormous.
For now, all we are seeing is a turbo boost to equities, and a 'stability' in bonds.
..._0 -
That link shows a massive increase in money supply, not a reduction. Most of that money has not been put into circulation_
I'm not sure how you draw that conclusion. The wiggly upward line from 1983-2007 becomes a downward wiggly line. That shows the money supply falling.
If banks don't lend an increase in reserves then the money supply doesn't increase.0 -
That link shows a massive increase in money supply, not a reduction. ...
Que?
The link clearly shows that the money supply has been fallen since 2010, and shows the year-on-year change at 0.00%, i.e. stable....The historical evidence, that increasing money supply leads to inflation in both money and prices, is beyond question. ...
But we don't have an increasing money supply at the moment.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.2K Work, Benefits & Business
- 600.8K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards