QE3?

[mulberryhawk]

Yep I do actually, low interest rates ease the burden on over indebted households, albeit there being a minor trade off with moderate inflation effecting the cost of living.

Im sure the austrians would disagree but surely its better than the depression economics being practiced by the ECB under Trichet.

[Euler]

Q&A: more quantitative easing from the Bank of England?

http://blogs.ft.com/money-supply/2012/0 ... z1lgoWoEnU

[superfrank]

Bank of England injects another £50bn into UK economy
http://www.bbc.co.uk/news/business-16963116

they're at it again despite having achieved their stated aim of boosting asset prices... they are now justifying it by talking about a possible inflation undershoot while it's still over 4%!!!

to me this signals just how f*cked up everything really is... soaring stock markets on the back of funny money flooding the system from the FED, BoE and ECB. a modicum of growth in the US (whose economy is still under extreme stimulus while the national debt soars) and bonds yields at historic lows (because of the monetisation).

the central banks have gone "all in" with reflation - sooner or later there will be a day of reckoning for all this anti-capitalist market manipulation. the central banks are like central planners in communist systems, only in this case they are setting the price of money.

[Iron]

The BBC's wording leaves little doubt about what their take on the decision is:

'The Bank of England has agreed to extend its quantitative easing (QE) programme by £50bn to give a further boost to the UK economy.'

Who could object to a boost to the economy?

Jeff

[superfrank]

exactly Jeff - the plebs don't have a clue that the purchasing power of their money is being eroded as tptb create inflation to erode debt.

[andyfuller]

exactly Jeff - the plebs don't have a clue that the purchasing power of their money is being eroded as tptb create inflation to erode debt.

The purchasing power may be being eroded but also their high levels of debt are being eroded.

Take my sister (not a pleb but has a big mortgage) She has been on an unbelievable low rate of interest on her mortgage for ages now and at the same time the value of that debt has been eroded. She is winning on both counts, I on the other hand am getting a pitiful rate of interest on my savings whilst it is also being eroded by inflation.

Who's the pleb?

[superfrank]

i wasn't being offensive to anyone just emphasising the point that the masses don't understand what's going on.

yeah it's great for those that bought assets at inflated prices with high leverage - they have got away with it (after the previous house price boom in the eighties people weren't so lucky).

the reason that tptb couldn't let the market adjust naturally this time was that the bubbles were so huge (because of their negligence) that the whole system was in danger. but all they've really done is postpone the pain - anyone who thinks things are fixed, or that all this largesse won't have to be paid for, needs to wake up.

[andyfuller]

Yup the day of reckoning will come eventually. They just don't want it on their watch if at all possible. Things are a long long way off being fixed imo.

[mulberryhawk]

Frank are u Tyler Durden in disguise

[Iron]

I imagine that Frank is flattered that you mistook him for Brad Pitt!

http://www.google.co.uk/imgres?q=tyler+ ... 29,r:0,s:0

Frank are u Tyler Durden in disguise

[superfrank]

I wish (on looks and intellect!)...

[superfrank]

How does quantitative easing work?
http://www.bbc.co.uk/news/business-16974497
Stephanie Flanders on how QE works... no mention whatsoever of any downsides of printing money e.g. the fact that it impoverishes the young and unborn to keep baby boomers "rich", inflation and increased chance of hyperinflation etc.

[Iron]

Quite. The bias is palpable.

Here's a more balanced assessment of QE, which talks about things like the fact that QE is effectively a tax on pensioners: http://www.telegraph.co.uk/comment/9073 ... money.html

Jeff

How does quantitative easing work?
http://www.bbc.co.uk/news/business-16974497
Stephanie Flanders on how QE works... no mention whatsoever of any downsides of printing money e.g. the fact that it impoverishes the young and unborn to keep baby boomers "rich", inflation and increased chance of hyperinflation etc.

[superfrank]

Dennis Gartman is ‘wild-eyed bullish’ on stocks
http://www.marketwatch.com/story/dennis ... inginsight

“Investors are terrified of stocks,” Gartman told me. “You can’t get people to buy Procter & Gamble PG with a dividend of 3.3%.”

Besides bond funds, people have been sticking their cash into the proverbial mattress. “Baby boomers are laden with cash,” Gartman said. “Checking-account balances are outrageously high. They’re paying out nothing at all.”

What’s going to get these terrified people with bulging checkbooks back into stocks? “Greed,” Gartman replied simply. “Greed and the need for yield will bring them in. That’s what the Fed wants them to do.”

Take note, conspiracy theorists and Ron Paul supporters (not necessarily the same people): Gartman largely agrees with you — the Fed is behind the whole thing.

By promising that short-term interest rates will stay near zero until 2014, Federal Reserve Chairman Ben Bernanke is offering savers what is in effect a Hobson’s choice: Earn nothing and watch your capital deteriorate, or jump in the pool and take some risk. And don’t worry: The water’s fine.

“Keeping rates low and long will force boomers to … move into the equity markets,” albeit kicking and screaming, Gartman told me.

[Iron]

Bank of England's £50bn QE puts Britain in 'better position than Germany' [according to Fitch] - http://www.telegraph.co.uk/finance/econ ... rmany.html