EU could have QE by next month

calicocat

purch wrote: »

The EUR will weaken even further.

The EUR will have a fewer nations using it soon.

Interest rates will stay low everywhere for quite a few more years.

My limited understanding agrees with this.



I also for some reason that cash will end up king on a small (average) level for a while.

Generali

theEnd wrote: »

Was the British version ever really used?

Yes it was.

The 'British' version is called 'Long Form' and the US version is 'Short Form'. Europe and the US agreed on the Short Form in the early 70s.

In the Long form 1,000 million is a milliard. If you ever work in the FX markets where millions, billions and trillions (short form) are possible numbers then the word 'Yard' is used as an abbreviation for milliard.

wymondham

Still living the Euro dream!!!

padington

theEnd wrote: »

That's the problem, no-one really knows.

The QE (money printing) would suggest inflation, so you'd invest in precious metals, property etc, but these seem already in bubble territory (in fact the property bubble caused the whole thing in the first place).

Also, is the money printing simply trying to negate some of what could be a massive debt deflation we're about to see.

On every occasion since the problems first arose in 2007, QE and various other monetary and fiscal tools have been used to kick the can a little further down the road.

No problems have been solved. In fact when it does eventually collapse, all the things they've done will make it so much worse.

The money will look for safehavens. London property (whilst a massive EU money printing exercise is happening ) will seem like a very safe haven. London doesn't have the euro but will get to play with all the euro's. London property is a safe bet. It's a place to weather a storm and the very trusted place that many Europeans head to in troubled times and will head to again - as long as labour don't get in. I expect fairly decent price rises after the election with no labour victory. Until then, it just depends on the wind.

Jonbvn

padington wrote: »

The money will look for safehavens. London property (whilst a massive EU money printing exercise is happening ) will seem like a very safe haven. London doesn't have the euro but will get to play with all the euro's. London property is a safe bet. It's a place to weather a storm and the very trusted place that many Europeans head to in troubled times and will head to again - as long as labour don't get in. I expect fairly decent price rises after the election with no labour victory. Until then, it just depends on the wind.

I'm uncertain whether that ship has sailed already or not. I guess time will tell.

Generali

padington wrote: »

The money will look for safehavens. London property (whilst a massive EU money printing exercise is happening ) will seem like a very safe haven. London doesn't have the euro but will get to play with all the euro's. London property is a safe bet. It's a place to weather a storm and the very trusted place that many Europeans head to in troubled times and will head to again - as long as labour don't get in. I expect fairly decent price rises after the election with no labour victory. Until then, it just depends on the wind.

London property and art. Both are fantastic for money laundering so all those criminals with loads of dodgy cash they don't want devalued will be piling in to both from the EZ. Expect plenty of 'auction record' articles over the next couple of years.

padington

Generali wrote: »

London property and art. Both are fantastic for money laundering so all those criminals with loads of dodgy cash they don't want devalued will be piling in to both from the EZ. Expect plenty of 'auction record' articles over the next couple of years.

Yep, a great time to buy a signed Banksy print or two, a key gold standard of modern safe havens and easily portable and tradable. Nothing like a highly desirable currency that can't be printed anymore.

pop_gun

Here's what the now chancellor had to say of QE in 2009.

http://www.investmentweek.co.uk/investment-week/news/2115108/osborne-2009-printing-money-resort-desperate-govts

The very fact the Treasury is speculating about printing money shows Gordon Brown has led Britain to the brink of bankruptcy.
Printing money is the last resort of desperate governments when all other policies have failed.

I would add it isn't just a failure of governments but a failure of the fiat currency system. A system which has no mechanism to constraint the unlimited printing of money.

padington

pop_gun wrote: »

Here's what the now chancellor had to say of QE in 2009.

http://www.investmentweek.co.uk/investment-week/news/2115108/osborne-2009-printing-money-resort-desperate-govts



I would add it isn't just a failure of governments but a failure of the fiat currency system. A system which has no mechanism to constraint the unlimited printing of money.

I disagree, a trusted currency that can be printed within reason as desired and can still maintain that trust, is the most powerful invention ever made. Hence why every government and their dog wants one. Finite resources are ten a penny, trusted infinite ones are a rare highly prized breed. Also printing money is a wonderfully efficient way of taxing people.

pop_gun

padington wrote: »

I disagree, a trusted currency that can be printed within reason as desired and can still maintain that trust, is the most powerful invention ever made. Hence why every government and their dog wants one. Finite resources are ten a penny, trusted infinite ones are a rare highly prized breed. Also printing money is a wonderfully efficient way of taxing people.

[BIB]
Now there is the problem.