QE3?

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superfrank
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A Reminder Of The EURUSD's Response To The Historic Announcement At 2:00 PM On March 18, 2009
http://www.zerohedge.com/news/reminder- ... ch-18-2009
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superfrank
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Deutsche On QE3, It's $800bn Or Bust!
http://www.zerohedge.com/news/deutsche- ... bn-or-bust

suggests that the market has $800bn of new funny money priced into bonds.
Iron
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Gilt yields fall on double-dip fears - http://www.ft.com/cms/s/0/6ee261f2-2d86 ... z1hOyyBPNj

'The government’s benchmark long-term borrowing costs fell to their lowest level since the 1890s, reflecting investor fears that the economy is heading for a double-dip recession.'
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superfrank
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it's mad really. a country's risk to honour its debts surely increases when they are in recession and have to borrow more and receive less in tax.

the only reason yields are falling is obviously because it means more bond buying with printed money.

according to the BBC (http://www.bbc.co.uk/news/business-16315355)...
The low level reflects market expectations that the UK economy is likely to experience years of low growth and low inflation, with the Bank of England holding short-term interest rates close to zero.
the first and last parts are almost a given, but the low inflation part is far from guaranteed (especially if investors lose confidence in the UK and the £ depreciates even further). ponzi economics imho.
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superfrank
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what to buy ahead of QE3 (expected in March) by Soc Gen...
http://www.zerohedge.com/news/complete- ... -ahead-qe3
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superfrank
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Fed not to raise US interest rates until late 2014
http://www.bbc.co.uk/news/business-16733461

please keep buying shares; we'll back you all the way.

what it really says is that they haven't got a clue how to fix things and so they keep promising indefinite loose monetary policy in the hope that something will turn up to make things ok. clueless thieves.

Bill Gross of PIMCO...

Image

the price of virtually everything went up on the announcement... stocks, commodities AND BONDS. it says more about the value of money than the price of anything else.
Unlike in previous statements, the Fed also no longer said it was monitoring inflation closely, reinforcing the impression that price rises were no longer a major concern.
yeah, whatever.

gold's reaction...
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Euler
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The Fed is desperate to print more money – here’s how to profit

http://www.moneyweek.com/news-and-chart ... g-qe-20400
Iron
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Bank of England to print further £50 billion - http://www.telegraph.co.uk/finance/9061 ... llion.html

So how come Mr Goodwin loses his knighthood but Sir Mervyn doesn't? :evil:

Jeff
mulberryhawk
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probably because hes preventing a debt deflation spiral like the one being played out in the eurozone....
Iron
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So do you think Britain is at risk of deflation?

Anything's possible, but I'd say we've got more than enough inflationary pressures as things are, without Merv adding to the mix...

Jeff
mulberryhawk wrote:probably because hes preventing a debt deflation spiral like the one being played out in the eurozone....
mulberryhawk
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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.
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Euler
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Q&A: more quantitative easing from the Bank of England?

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

Jeff
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superfrank
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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.
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