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The End of the Beginning for QE in the US...?
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Confirmation bias seems to be at play here.........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. But we don't have an increasing money supply at the moment.
Lets look at the chart for money supply before today, or has it not doubled in the last 8 years?
The world was here before 2010, and once QE gets through to the high street, watch prices.
You need look no further to see what happens to prices, than the current Help to Buy scheme in housing, and that is nowhere near the scale of QE stimulus.
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Confirmation bias seems to be at play here.
Lets look at the chart for money supply before today, or has it not doubled in the last 8 years?
The world was here before 2010, and once QE gets through to the high street, watch prices.
You need look no further to see what happens to prices, than the current Help to Buy scheme in housing, and that is nowhere near the scale of QE stimulus.
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The Bank of England began QE in January 2009. M4 Money supply began falling a year later. Ergo QE has not led to an increase in the money supply, and thus there is no inflation risk.
You are simply asserting the belief that at some point in the future there will be an increase in the money supply, and thus there will be lots of inflation. But as yet, there is no evidence of that happening.0 -
The difference pre 2009 was that the money was going straight into the general economy, now most it is going straight into the bank vaults. The rise in money supply before QE was what got us in this mess.The Bank of England began QE in January 2009......You are simply asserting the belief that at some point in the future there will be an increase in the money supply, and thus there will be lots of inflation. But as yet, there is no evidence of that happening.
The taper is a figment of everybodies imagination, it won't happen because it can't happen. It's never been done before, they don't know how to do it. QE has to carry on, as mad as it is.
Price inflation refuses to die, the reason I see is because the loot is held by the banks, not released to the general economy. QE and inflation will carry on increasing.
Out for rest of day, catch you all later.
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Not trying to be rude here, but I have to say 'give up digger, you clearly have no real idea of what you're talking about'.
No disrespect intended, I just feel it needed to be said.0 -
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Yes you are trying to be rude, now let me ignore you in peace.OffGridLiving wrote: »Not trying to be rude here.....
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If you read between the lines of Mark Carneys speech today, especially this from page 9......I think you seriously misunderstand the nature of both QE and money if you think it's capable of being placed in a 'bank vault'.:)"Accordingly, I can confirm today that, for major banks and building societies meeting the minimum 7% capital threshold, the Bank of England will reduce the level of required liquid asset holdings. The effect will be to lower total required holdings by £90 billion, once all eight major banks and building societies meet the capital threshold. That will help to underpin the supply of credit, since every pound currently held in liquid assets is a pound that could be lent to the real economy.".......then you may come to the same conclusion as me by considering were the money in their vaults come from......depositors yes, but in the main it came from 0.5% BOE funny money.
Now, by steping aside from Basel 'they are only guidelines' they can delay more QE by reducing the level of "liquid asset holdings" aka QE funds, by 90 billion.
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Yes you are trying to be rude, now let me ignore you in peace.
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Tsk, some people just won't accept friendly advice. When in a hole, stop digging, though I guess with a username like yours, that advice will fall on deaf ears.
Please feel free to carry on making a fool of yourself.
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Now, by steping aside from Basel 'they are only guidelines' they can delay more QE by reducing the level of "liquid asset holdings" aka QE funds, by 90 billion.
Barclays are contracting their balance sheet by £85 billion as part of the recapitalisation exercise.
Current estimates are that European banks will contract lending by some 2.4 Trillion euros to meet the requirements of Basel 3 by 2019.
There's significant financial engineering going on by central banks while banks deleverage.0
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