QE3?
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mulberryhawk
- Posts: 165
- Joined: Thu Oct 29, 2009 12:37 am
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What Taleb fails to acknowledge is what would happen to the value on the assets if this support is withdrawn, so while on paper banks may look well capitalised, in reality it may be a different story.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.
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.
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]
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]
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
'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
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superfrank
- Posts: 2762
- Joined: Fri Aug 14, 2009 8:28 pm
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.
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.
No one will buy Osborne's 100-year gilts - pension funds - http://www.telegraph.co.uk/finance/econ ... funds.html
Jeff
Jeff
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superfrank
- Posts: 2762
- Joined: Fri Aug 14, 2009 8:28 pm
the BoE will.Ferru123 wrote:No one will buy Osborne's 100-year gilts - pension funds - http://www.telegraph.co.uk/finance/econ ... funds.html
Jeff
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superfrank
- Posts: 2762
- Joined: Fri Aug 14, 2009 8:28 pm
QE is buying govt bonds with funny money, so they will probably buy these too.
more like transferring money to the present from the future (or to the rich from the poor as Taleb says).
more like transferring money to the present from the future (or to the rich from the poor as Taleb says).
QE quadruples FTSE 350 pensions deficit in one year - http://www.telegraph.co.uk/finance/pers ... -year.html
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superfrank
- Posts: 2762
- Joined: Fri Aug 14, 2009 8:28 pm
Sunday Times Rich List suggests UK's wealthiest defy recession
http://www.bbc.co.uk/news/uk-17883101
hardly surprising when economic central planners run things to suit their interests.
http://www.bbc.co.uk/news/uk-17883101
hardly surprising when economic central planners run things to suit their interests.
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superfrank
- Posts: 2762
- Joined: Fri Aug 14, 2009 8:28 pm
IMF tells UK to consider rate cut to boost growth
http://www.bbc.co.uk/news/business-18158226
more like the UK asks the IMF to publicly call for zero rates and more QE so that they have some justification for more currency debauchment.
http://www.bbc.co.uk/news/business-18158226
more like the UK asks the IMF to publicly call for zero rates and more QE so that they have some justification for more currency debauchment.
The International Monetary Fund (IMF) has said the UK's continuing economic weakness means authorities should consider more quantitative easing (QE) and even cutting interest rates.
these are the cuts that still haven't even started despite being 4 years into a sovereign debt crisis.But it said if growth failed to pick up, the government would have to consider delaying cuts.
Bank of England to consider £50bn stimulus for economy - http://www.telegraph.co.uk/finance/econ ... onomy.html
