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Green across the Board as printing takes off
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Glen_Clark wrote: »QE hasn't failed, its working just as intended. Its bailed out the bankers, who then gave Tony Blair a £500k part time job as soon as he left office. Its preserved the Status Quo, and robbed the poor to shower the rich with unearned income.
This isn't Capitalism, its Socialism for the Rich.
Ha, well I'm not quite cynical enough to think that's what was intended
And when things crash back down to earth, it'll presumably be the rich who lose disproportionately more too
Like Buffett said: "Price is what you pay, value is what you get" - and all QE does is inflate price0 -
Ryan_Futuristics wrote: »Ha, well I'm not quite cynical enough to think that's what was intended
And when things crash back down to earth, it'll presumably be the rich who lose disproportionately more too
Like Buffett said: "Price is what you pay, value is what you get" - and all QE does is inflate price
Exactly and the rich know it, hence why they won't stop quantatively easing if they can help it. London home owners are in a very fortunate place.Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
Well I wouldn't have called it 'strength' but the pound has recovered some of the ground lost against the Euro since the Euro was introduced at 1.6 Euros to the pound.1) The money will be attracted to london partly because land is rare and planning rules strict and even more so now because the currency gaining strength in relation to the euro.
2) You've got it the wrong way around according to Wikipedia, UK 'printed' 375 billion, which is about a third of what Europe intends on printing.
http://en.m.wikipedia.org/wiki/Quantitative_easing
Also it's worth noting that niether the US nor UK managed to stick with just one wave of QE Once they started ...
People have to change money to pounds to buy London property as the UK tax regime and policing favours the super rich, but they only change money to buy the property once, after which the pound may resume its downward spiral.
As I said QE compared to GDP puts the European QE about one third of what Britain has printed already. (Their combined GDP being a lot more than Britain's) Perhaps it would have been clearer if I had said 'as a proportion of GDP.'
Neither the US nor UK managed to stick with just one wave of QE once they started, as you say. But they didn't have to drag Germany along with them........“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
Exactly and the rich know it, hence why they won't stop quantatively easing if they can help it. London home owners are in a very fortunate place.
I remember a US billionaire saying the same back around 2009 - so far he seems to be right
And the US is earning (I believe) $100bn/year in interest from its bond holdings, which is all being silently reinvested (still at 10x the historical average for government bond purchases)
But I'm still planning to start reducing exposure (to equities and property) when/if prices dip below the line
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Glen_Clark wrote: »Well I wouldn't have called it 'strength' but the pound has recovered some of the ground lost against the Euro since the Euro was introduced at 1.6 Euros to the pound.
People have to change money to pounds to buy London property as the UK tax regime and policing favours the super rich, but they only change money to buy the property once, after which the pound may resume its downward spiral.
As I said QE compared to GDP puts the European QE about one third of what Britain has printed already. (Their combined GDP being a lot more than Britain's) Perhaps it would have been clearer if I had said 'as a proportion of GDP.'
Neither the US nor UK managed to stick with just one wave of QE once they started, as you say. But they didn't have to drag Germany along with them........
Ah relative to GDP missed that bit ... but it doesn't matter, the only issue is how much loose money is going to wash through London banks and where will that money chose to reside.
Personally I think the markets have clearly spoken and they are predicting a weak euro and a strong relative pound. I think the market appreciates that there is more weakness yet to come. Concerns over internal disagreements in Europe and failures to propely restructure will ensure this happens.
It's all a remarkable stich up this QE because it will make the Greeks more likely to come to the table to get a part of it and further down the line the UK will be in a strong position and will vote to stay in Europe in the 2017 referendum.
Its such a powerful political tool, I can see it being used more than once just for that reason alone.
Property in the worlds capitals, art and classic cars are going to keep on booming. I can foresee things getting absolutely silly.Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
weak euro and a strong relative pound.
The pound hasn't even come close to recovering lost ground since the Euro was introduced. When the smoke clears the value of the pound depends on how much we can sell abroad. This productive side of the economy has been starved of investment by the Government making Buy to Let more profitable - which is a double whammy for the skyrocketing National Debt because the taxpayer is on the hook for record and fast rising Housing Benefit to make up the difference between wages and rents.“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
It's all a remarkable stich up this QE because it will make the Greeks more likely to come to the table to get a part of it and further down the line the UK will be in a strong position and will vote to stay in Europe in the 2017 referendum.
Its such a powerful political tool, I can see it being used more than once just for that reason alone.
Property in the worlds capitals, art and classic cars are going to keep on booming. I can foresee things getting absolutely silly.
As another poster pointed out recently the financial benefit from this will tend towards those already with wealth. QE here and in the US is thought to have widened the rich-poor gap with the lower-middle classes yet to feel any benefit from the recovery. If the euro QE does indeed go this way (and there is no reason to believe otherwise) then the situation in places like Greece, Italy even France could become even more heated. Disparity may lead to division and division, revolution. Still at least they can all go eat cake.
Of course on the other hand things could go really well.... or even stay the same.0 -
As another poster pointed out recently the financial benefit from this will tend towards those already with wealth. QE here and in the US is thought to have widened the rich-poor gap with the lower-middle classes yet to feel any benefit from the recovery. If the euro QE does indeed go this way (and there is no reason to believe otherwise) then the situation in places like Greece, Italy even France could become even more heated. Disparity may lead to division and division, revolution. Still at least they can all go eat cake.
Of course on the other hand things could go really well.... or even stay the same.
Yes, this is capatalism eating itself. It's going to be hard to stop choosing to QE to infinity because of the withdrawl will be too much for any short term goverement to want to endure. Whilst taxation to rebalance the inequality is a broken tool because there isn't a global government to oversee it.
I think it's fairly obvious that subsidising the bond market by trillions is an unfair way to proceed and will have some dire consequences. However I'm not so sure anyone will change the game because of my observation so I try my best to change how I play the game instead.Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
Glen_Clark wrote: »The pound hasn't even come close to recovering lost ground since the Euro was introduced. When the smoke clears the value of the pound depends on how much we can sell abroad. This productive side of the economy has been starved of investment by the Government making Buy to Let more profitable - which is a double whammy for the skyrocketing National Debt because the taxpayer is on the hook for record and fast rising Housing Benefit to make up the difference between wages and rents.
The pound doesn't need to recover what it lost for London property to seem like a safe haven it just needs the euro to become increasing relatively weaker over the next two years. Most of the currency speculators seem to be talking about a weaker euro in six months time, that's enough for the first six months of EU QE to see London as a good safehaven.
Either way, if London property goes up significantly over the next two years, my theory was right, let's see.Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
However I'm not so sure anyone will change the game because of my observation so I try my best to change how I play the game instead.
Indeed. I've personally found it essential to have a disconnect between political ideology and prudent future planning. Especially when kids/family came along and with old age rapidly approaching.
To not 'play the game' because you disagree with it in principle 'may' be honourable but is often not profitable.
Karl Marx keeps my financial login details safe for me
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