QE3?

[mulberryhawk]

Sure while were at it , lets reintroduce the gold standard, that will solve everything........

[Ferru123]

And of course, that's the only logical alternative to printing money!

Jeff

Sure while were at it , lets reintroduce the gold standard, that will solve everything........

[mulberryhawk]

Well its a bit of an extreme example I know, but I was channeling Ron Paul since u are using him to support your argument

[Ferru123]

Um, OK...

Jeff

Well its a bit of an extreme example I know, but I was channeling Ron Paul since u are using him to support your argument

[Ferru123]

Nasseem Taleb, quoted in the Spectator (http://www.spectator.co.uk/coffeehouse/ ... sing.thtml):

‘“Quantitative Easing is a transfer of wealth from the poor to the rich,” he says, “It floods banks with money, which they use to pay themselves bonuses. The banks have money, and assets, so they can borrow easily. The poor guy, who is unemployed and can't borrow, is not going to benefit from it.” The QE process pushes asset prices up, he says, which is great for those who own stocks, shares and expensive houses. “But the state is subsidising the rich. It is the top 1 per cent who benefit from Quantitative Easing, not the 99 per cent.”’

[Ferru123]

Bank of England's QE has cost pensioners £90bn, says National Association of Pension Funds - http://www.telegraph.co.uk/finance/pers ... Funds.html

[mulberryhawk]

I think there is a lot of truth in what Taleb says Jeff to be honest.

I have already said that QE is a direct response to the failings of the banking sector which you decribed as the goose that lays "golden eggs".

The asset prices being supported are also a large proportion of pension holders and property holders lifes savings tied up. So yes people with assets, and therefore the people in the population who have saved and invested their earnings in the stocks, bonds and bricks and mortar are being protected.

All I am trying to point out is that these people have a stake in the capitalist model that we have all bought into.


Just think of the consequences if people who have invested their life savings in pension funds and property lose it all in a debt deflation supercycle.

What Taleb fails to acknowledge is what would happen to the value on the assets if this support is withdrawn, so while on paper banks may look well capitalised, in reality it may be a different story.


In that way anarchy lies, as is evident in certain countries in Europe.

Yes inflation probably affects the poor more so than the rich as food and energy prices arguably take up a larger proportion of their disposable income. Iv never said its ideal, but at least the economic and social model hasent collapsed in the UK as it has in parts of Europe.

I have tried to present a non biased and objective view of whats happening in the economy in opposition to what I have felt at times is a one sided and inaccurate portrayal of the actual situation.

It is clear that we dont agree on most issues Jeff, and in light of Galileos post which I agree with this will be my last post on the subject, or any other subject other than trading.

I have no axe to grind, and I hope those that do (you know who you are)resist the urge to impose their personal opinions on the rest of the forum.

[Ferru123]

I don't know what you're talking about.

Some people - your good self included - express their views with passion, but I don't see how anyone can be accused of imposing their views on others. People can read my posts or ignore my posts - I'm not imposing anyone on anyone (I appreciate that you weren't necessarily referring to me).

Jeff

[quote="mulberryhawk"
I have no axe to grind, and I hope those that do (you know who you are)resist the urge to impose their personal opinions on the rest of the forum.[/quote]

[Ferru123]

UK Treasury considers super long-term borrowing plan - http://www.bbc.co.uk/news/business-17361330

'A long-dated bond typically gives the government 30 years to repay in full.

The new plan is looking at issuing bonds with a 100-year repayment date, or even longer.'

Talk about kicking the can down the road! My Osborne's great grandchildren will be paying interest on these bonds!

Jeff

[superfrank]

debt is the problem, so, er, more debt is the solution!

we will end up with intergenerational mortgages - it's already been suggested by the IMF as a solution to falling property prices (they had 100 year mortgages at the peak of the Japan property bubble).

mulberryhawk, 'not sure what you're going on about re views on a forum - it's a place for opinion, take it or leave it, that's the whole point.