Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

News

Blimey: the Bank of England are printing money...

123 replies

WilfSell · 05/03/2009 12:35

...Or quantitative easing as they call it.

We'll be inviting Berlusconi to run the NHS next. And paying 2 million pounds for bread.

Ho hum.

As long as they spend it on public works, I don't mind.

OP posts:
PerArduaAdNauseum · 05/03/2009 13:32
  • misread your OP...
Tortington · 05/03/2009 13:34

thanks SC

Stretch · 05/03/2009 13:38

Is that what liquidity is then? Freeing up actual cash, not just some electronic transfers and sheets of numbers?

WHY don't we get taught this when at school? Just the basics!

noddyholder · 05/03/2009 13:40

Unbelievable we must really be in it as they said at the beginning printing mon ey was not an option.But it is still part of the national debt so eventually i think we do pay

cestlavie · 05/03/2009 13:46

Northernlurker: no, I don't think that's why but I do think given where they are now the BoE feels comfortable they've a lot of scope to tackle inflation using rates if necessary.

Dittany: there were a variety of reasons they let it get so bad. Firstly, broadly everyone was getting richer (on paper) and no-one wanted to stop it - home owners were seeing the price of the properties soar, savings and stock markets were rising, pensions swelling, company earning were growing, people and businesses had greater availability to credit than ever before - it was in very few people's interests to stop it.

Now, if of course everyone had realised that it was all destined to end in a cataclysmic collapse then certainly more people would have spoken up. Unfortunately, for the last couple of decades at least we in capitalist economies have all been in thrall to the efficient market hypothesis (thanks Greenspan and all your ilk...) - this says a variety of things, but the core of it is that the market prices everything correctly, not just goods and services but also assets and capital. That means that house prices were never over-valued - they reflected market values which implicitly prices things correctly. Unfortunately, the efficient market hypothesis (for reasons I won't bore you about) has turned out to be utter bollocks, certainly as far as pricing assets and capital correctly goes...

WilfSell · 05/03/2009 13:46

PerArdua

No you misunderstood me: I think we SHOULD only spend liquidity on public works, as the Keynesian model suggests. I don't think more lending is the answer and I think hyper-inflation is a risk.

Public good is the way. That way it keeps the money out of the general market but improves long term productivity and creates jobs. The free market solution on its own has failed.

OP posts:
WilfSell · 05/03/2009 13:47
OP posts:
justaphase · 05/03/2009 13:47

I hate postng this but can't resist:

comment from Dr. G. Gono, chairman of the Reserve Bank of Zimbabwe:

"As Monetary Authorities, we have been humbled and have taken heart in the realization that some leading Central Banks, including those in the USA and the UK, are now not just talking of, but also actually implementing flexible and pragmatic central bank support programmes where these are deemed necessary in their National interests.

...That is precisely the path that we began over 4 years ago in pursuit of our national interest and we have not wavered on that critical path despite the untold misunderstanding, vilification, and demonization we have endured from across the political divide.

...Here in Zimbabwe we had our near-bank failures a few years ago and we responded by providing the affected Banks with the Troubled Bank Fund (TBF) for which we were heavily criticized even by some multilateral institutions who today are silent when the Central Banks of UK and USA are going the same way and doing the same thing under very similar circumstances thereby continuing the unfortunate hypocrisy that what's good for goose is not good for the gander.

...As Monetary Authorities, we commend those of our peers, the world over, who have now seen the light on the need for the adoption of flexible and practical interventions and support to key sectors of the economy when faced with unusual circumstances."

WilfSell · 05/03/2009 13:50

Zimbabwe here we come?

OP posts:
PerArduaAdNauseum · 05/03/2009 13:54
Haribosmummy · 05/03/2009 14:04

Expat - I couldn't agree more with your post.

Let's make sure anyone with any money SPENDS it, wait till everyone has nothing, we're all paying 50% tax (well, those 'lucky' enough to have a job), create a generation of people who feel they might as well not work because if they do, all their money goes in child care and taxes and then, guess what: THE FUCKING BANKS (that WE are being forced to bail out RIGHT NOW) will hike the FUCKING rates up and everyone who owes them money will be screwed to the FUCKING deck.

It's disgusting. Where IN HELLS NAME is the COURT of fucking PUBLIC OPINION now?

Sorry, but I am sooo angry about this. It's lunacy. madness. Total flipping madness.

noddyholder · 05/03/2009 14:07

They ONLY want to get the housing market going again don't think this will be a cure all in any way.Inflation here we come

Sorrento · 05/03/2009 14:08

Are you really surprised I predicted this a year ago they are pathetically short sighted.

jumpingbeans · 05/03/2009 14:10

Just spat coffee all over the screen,PerArdua
but me thinks you are right.

Sorrento · 05/03/2009 14:11

Start filling the freezers ladies and stock pilings tins of food and meat. Seriously.

georgiemum · 05/03/2009 14:11

I vote for a £25 note.

In Japan the gvt is giving money to the citizens so that they will go out and spend it. Come on Gordon!

LiberalIdleOlogy · 05/03/2009 14:13

We're all going to be millionaires

...admittedly, impoverished millionaires.

Sorrento · 05/03/2009 14:14

They aren't giving them anything it's their own money, they will want it back in the form of taxes.
If somebody gives you a tenner you are more likely to spend it on crap you don't need than if that tenner is earnt and comes in your pay packet, but it's the same tenner.
If GB hands out money save it, you're gonna need it.

noddyholder · 05/03/2009 14:16

I think he is going to allow a bit of a carnival vibe wrt to finances until he really gets his arse into Downing street and then taxes interest rates and the price of everything will rocket.It is a nightmare.

cestlavie · 05/03/2009 14:20

The reality is that no-one knows what will work at the moment or how it will play out in the future. Certainly Cameron has no better idea than Brown. We are in pretty much uncharted economic territory.

noddyholder · 05/03/2009 14:23

I think brown is a lot more likely to be reckless though as his whole reputation is built on economic growth and stability and it is falling apart.

Sorrento · 05/03/2009 14:24

By cestlavie on Thu 05-Mar-09 14:20:42
The reality is that no-one knows what will work at the moment or how it will play out in the future. Certainly Cameron has no better idea than Brown. We are in pretty much uncharted economic territory.

Which Gordon caused. Quite a few people have had a very good idea how this would play out for the last 4 years.

cestlavie · 05/03/2009 14:29

Really Sorrento? Who exactly predicted the current situation?

noddyholder · 05/03/2009 14:29

They did know as sorrento says.I took advice from someone at teh end of 06 and he writes for a paper so if he knew they definitely did but were enjoying the glory while it lasted.

jumpingbeans · 05/03/2009 14:30

I thought this ws a "world" crisis, is gordon responsible for it all?

Swipe left for the next trending thread