QE3?

[superfrank]

The point is that the inflation in the UK is not being driven by an overheating economy. Its due to high international energy and food prices which are out of his control.

nope, it's due to currency debauchment via QE.

i've written to Merv in the past (and asked him to resign a couple of times!) and always get a reply but it's a waste of time - he does what his masters tell him to do. i don't think he's a bad bloke really (secretly he knows the score), but, like electricity, he always chooses that path of least resistance.

[mulberryhawk]

nope, it's due to currency debauchment via QE.

would that be the currency debauchment that has seen sterling gain nearly 10% on the euro in the last six months ?

[Iron]

Mulberryhawk - Why do you feel the need to adopt a sarcastic tone? Do you feel it enhances the forum?

Jeff

[mulberryhawk]

Apologies if my tone is sarcastic, its not intentional.

Also I think your good self has adopted a sarcastic tone is pouring scorn on mervyn king et al on their handling of the economy so double standards .

Hence my posting on this thread in the first place, to push against the one sided nature of the analysis.

[Iron]

Apologies if my tone is sarcastic, its not intentional.

Fair enough - it is easy for things to be lost in translation when posting on internet forums, where there is no body language, intonation, etc.

Jeff

[superfrank]

nope, it's due to currency debauchment via QE.

would that be the currency debauchment that has seen sterling gain nearly 10% on the euro in the last six months ?

not even Merv could keep the £ falling against the €!

checkout the £ against the Yen, Singapore dollar, Aussie dollar etc.

http://uk.finance.yahoo.com/echarts?s=G ... =;range=5y

http://uk.finance.yahoo.com/echarts?s=G ... =;range=5y

http://uk.finance.yahoo.com/echarts?s=G ... =;range=5y

for a country with a dreadful trade balance that equals inflation.

[mulberryhawk]

Frank you have been extolling the virtues of the german driven austerity in Europe, and yet it is the euro that is being "debauched" due to the ECB`s unwillingness to ease.

I dont see hyperinflation or debauched currencies in the US, UK or Japan . All have used QE as a tool to support aggregrate demand which supports the economy.

We arent discussing or debating Australian or Singaporean fiscal or monetary policy here. We are discussing European austerity policies here and your claims dont bear up under scrutiny.

The Dollar, Yen and Pound are all up between 6-8% in the last 6 months. I am merely trying to figure out where the hyperinflation and debauchery that you and jeff have been warning us all about is?

[superfrank]

the Euro started to fall after the ECB starting printing (LTRO). the ECB have eased. what they're not prepared to do is be even more reckless (which is what you, the US and UK are asking for).

printing = debauchment

youre aggregate demand stuff sounds impressive but it's just more time buying nonsense - easy to increase demand by diluting the currency but it solves nothing.

[superfrank]

More Bank of England members support extra stimulus
http://www.bbc.co.uk/news/business-18517470

"On balance, most members judged that some further economic stimulus was either warranted immediately or would probably become warranted in order to meet the inflation target," the minutes said.

what a joke.

[mulberryhawk]

[quote="superfrank"]the Euro started to fall after the ECB starting printing (LTRO). the ECB have eased. what they're not prepared to do is be even more reckless (which is what you, the US and UK are asking for).

printing = debauchment

The Euro was trading at .90 to sterling last july, it had dropped to .83 by 21st of december when the ltro was announced. It is trading at around the .81 handle as we speak.

Once again the facts dont support claims that QE will lead to either hyperinflation or a debauched currency.

[superfrank]

The Euro was trading at .90 to sterling last july, it had dropped to .83 by 21st of december when the ltro was announced. It is trading at around the .81 handle as we speak.

that because the banks knew it was coming* and got short the Euro big time.

and so did i - i read it on zerohedge

[mulberryhawk]

classic comeback, i cant argue with that frank

[Iron]

Helicopter Ben is up to his old tricks again! From the Telegraph:

The US Fed has twisted again: its monetary stimulus plan, "Operation Twist" will be extended by $267bn in a bid to boost the economy as the central bank still sees weakness.

Jeff

[Iron]

'In the last six weeks... I am very struck by how much has changed since we produced our May Inflation Report. I am pessimistic [about the eurozone outlook]. I am particularly concerned because over two years now we have seen the situation in the euro area get worse and the problem being pushed down the road.'

Mervyn King today

[superfrank]

Helicopter Ben is up to his old tricks again! From the Telegraph:

The US Fed has twisted again: its monetary stimulus plan, "Operation Twist" will be extended by $267bn in a bid to boost the economy as the central bank still sees weakness.

Jeff

they'll be seeing weakness, and printing, for the next 20 years*

* or until it all goes t1ts up.