Bank of England.....my arse !!

[yerwot?]

thought the 'new deal' pulled the US out of the bank-induced recession?Spending on the infra-structure of the country though, as opposed to giving money to those that caused the problem in the first place.The inflation figures this time are not caused by 'greedy workers' but by the cartels that control energy,competition-free markets,the cost of credit to the general public.But fear not, the answer is easy,we should pay off our house-hold debts,(thanks for that dave) and for it's part the gov't will make it easier to sack workers,that will really get the country back on it's feet.things could be a lot worse though,we could have a gov't that is more than happy at the zooming jobless figures,the state of the NHS ,the far-right media slant on everything,the historically wide gap between rich and poor,the increasing reliance on the 'financial sector' at the expense of all else.Thirty years of 'business-friendly' policies have left us where we are today,nod-nod wink-wink parliamentarians,unregulated financial markets,an over-powerful corrupt media empire,a carefully manipulated and apathetic general public( great time to be a tory surely) but the sting is not only is there no light at the end of the tunnel,the tunnel has been privatised and only the rich can use it

 

[metalblue]

It's a pre-emptive strike by the BoE to ensure UK banks are suitably capitalised ahead ahead of a (almost certain) Greek default and credit crunch round 2 (which has already started). Once the dust settles the theory is banks will then lend to SME's who need to borrow for growth and are the backbone of the economy.

However it's impossible to measure the impact of QE. One thing we can say with near certainty is; it's going to become tougher before it gets better.<br /><br />-- Fri Oct 07, 2011 7:20 am --<br /><br />

thought the 'new deal' pulled the US out of the bank-induced recession?Spending on the infra-structure of the country though, as opposed to giving money to those that caused the problem in the first place.The inflation figures this time are not caused by 'greedy workers' but by the cartels that control energy,competition-free markets,the cost of credit to the general public.But fear not, the answer is easy,we should pay off our house-hold debts,(thanks for that dave) and for it's part the gov't will make it easier to sack workers,that will really get the country back on it's feet.things could be a lot worse though,we could have a gov't that is more than happy at the zooming jobless figures,the state of the NHS ,the far-right media slant on everything,the historically wide gap between rich and poor,the increasing reliance on the 'financial sector' at the expense of all else.Thirty years of 'business-friendly' policies have left us where we are today,nod-nod wink-wink parliamentarians,unregulated financial markets,an over-powerful corrupt media empire,a carefully manipulated and apathetic general public( great time to be a tory surely) but the sting is not only is there no light at the end of the tunnel,the tunnel has been privatised and only the rich can use it

You couldn't be more wrong. The US completely mismanaged it, as a result they were downgraded and talk of default (however unlikely but just the fact people could even mention such a possibility) and the US has now had to bite the bullet and steer a path of cuts as the UK did day 1 and the UK is predicted to grow at a quicker rate than the US over the next couple of years - the cold fact is (an it isn't much comfort to those that are worried about where to find work or their current jobs - hell we should ALL be worried about that) the current government have done an outstanding job with the economy (albeit I will accept they have cut a little deeper and quicker than was necessay but I will bet that is to curry favour with voters 12 months ahead of the next election).

Inflation figures are presently commodity price generated, although companies are taking the piss with some retail prices, notably petrol prices.

 

[Skashion]

thought the 'new deal' pulled the US out of the bank-induced recession?

Nope, the Second World War did. So we've got to find some countries with money, who want to fight and then arm them both and let the money roll in. :) Israel and Iran possibly...

 

[BoyBlue_1985]

With all the financial advisor's and economic experts on Bluemoon i am surprised anyone struggles financially. Im shocked Mervin King has been able to keep his job so long with the depth of talent around for the BoE to choose from

 

[gordondaviesmoustache]

It's a pre-emptive strike by the BoE to ensure UK banks are suitably capitalised ahead ahead of a (almost certain) Greek default and credit crunch round 2 (which has already started). Once the dust settles the theory is banks will then lend to SME's who need to borrow for growth and are the backbone of the economy.

However it's impossible to measure the impact of QE. One thing we can say with near certainty is; it's going to become tougher before it gets better.

Too true, I'm afraid to say.

 

[nelsons willie]

I seem to remember mickey thomas trying a bit of quantative easing of his own.I dont think it went tooo well tho.

 

[simonr555]

I really don't understand it. If History teaches us anything, it's that printing more money to solve a debt's crisis is the worst idea since Olaf the Hairy, High King of all Vikings, ordered 6000 battle helmets with the horns on the inside.

Great programme. Good quote, mate.

 

[Anonymous]

So what is it that Germany seem to be getting right? Read the Economist the other day and it seemed to show they had a GDP growth of +8%, whereas ours was 0.7%?

Not an economic expert by any stretch of the imagination, but surely it can't do any harm to at least have a look-see at what Gerry's up to?

 

[MaineDAWG2008]

Printing money means inflation

I remember my dad explaining this to me when I asked him (when I was a kid) why the governments didn't just print more money so everyone could be rich!

He said that the amount of money in an economy is like a cake and printing more money just makes the slices smaller with the same sized cake.

I fail to see what has changed in the subsequent 30 years tbh.

still dont get it...

 

[SWP's back]

This Quantitive Easing bullshit is ridiculous.
If they can print £75 billion to help the economy, why can't they print another £75 billion to pay the Countries debts off. Just proves that yet again this Bank does not represent the interests of this country.
Very similar to the Federal Reserve which is neither Federal nor a Reserve the name alone hoodwinks you into a false sense of security.

*sigh*

-- Fri Oct 07, 2011 9:38 am --

All QE creates is inflation.

No it doesn't.<br /><br />-- Fri Oct 07, 2011 9:38 am --<br /><br />

We're fucked... again.

Fucking great 7 years of financial depression. I'm fucking sick of it.

Financial depression? DO you even know the meaning of the term?