• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

No need to panic after all.

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    No need to panic after all.

    Originally posted by Gonzo View Post
    ...... As for the article, what a load of bollocks. Is there any evidence that the Government is really planning to open the money supply floodgates? Everybody, and I mean everybody, knows that that would lead to total catastrophe. (See Zimbabwe for a recent example.)
    Originally posted by GreenerGrass View Post
    ..........

    Yeah
    "Section 6 of the Bank Charter Act 1844 (Bank to produce weekly account) shall cease to have effect."

    as revealed by Guido Fawkes and also commented on here:
    http://cynicuseconomicus.blogspot.co...k-economy.html
    The Treasury are now denying that they have got the printing presses on standby, see this article on the bbc today http://news.bbc.co.uk/1/hi/business/7817063.stm

    So that will be alright then,

    #2
    The glossy expensive magazine my stockbroker sent me had an article suggesting that printing money was a good option. Who knows what clue they have about such things, but just because some countries did it in a grossly over the top way doesn't mean judicious money printing will automatically lead to hyperinflation... post-war Germany and Zimbabwe were slightly extreme cases.
    Originally posted by MaryPoppins
    I'd still not breastfeed a nazi
    Originally posted by vetran
    Urine is quite nourishing

    Comment


      #3
      1) High house prices crash.

      2) Printing money causes inflation.

      It isn't different this time.
      I'm alright Jack

      Comment


        #4
        Can someone please explain what Quantitative Easing really means?

        Is it physical printing of money, if so how do the government get it into the economy (drops of 1,000,000,000 x £50 notes from aircraft over Labour marginals?).

        Or is it simply wiping their own debt clean and then the government go on a pointless spending exercise and give themselves huge pay rises?

        Won't this destroy the pound and bankrupt the country?

        Comment


          #5
          Originally posted by DimPrawn View Post
          Won't this destroy the pound and bankrupt the country?
          Isn't that what Gordon Brown wants?

          Comment


            #6
            Originally posted by Scotchpie View Post
            Isn't that what Gordon Brown wants?
            Yes, of course it is.
            Originally posted by MaryPoppins
            I'd still not breastfeed a nazi
            Originally posted by vetran
            Urine is quite nourishing

            Comment


              #7
              Originally posted by DimPrawn View Post
              Can someone please explain what Quantitative Easing really means?

              Is it physical printing of money, if so how do the government get it into the economy (drops of 1,000,000,000 x £50 notes from aircraft over Labour marginals?).

              Or is it simply wiping their own debt clean and then the government go on a pointless spending exercise and give themselves huge pay rises?

              Won't this destroy the pound and bankrupt the country?
              Quantitative Easing involves printing money to buy securities to flood the financial markets with cash or liquidity. That increases the amount of currency in circulation which reduces the value of the currency and boosts inflation...and because there is more of something, its value goes down. By the flooding the market with liquidity, the aim would be to promote lending - the theory being that flooding the financial system with so much excess reserves and liquidity would force the banks to resume "normal lending". You may or may not be convinced by that - I'm certainly not.

              As for the effect on currency - well, the Japanese tried it 8 years ago. In the first year of Quantitative Easing the Japanese Yen weakened against the US dollar by 18.5%, which is a textbook reaction to Quantitative Easing. The Nikkei also dropped 28 percent. Between 2002 and the end of 2004, $/Yen fell 22 percent as the Japanese economy began to stabilize. During that same time the Nikkei recovered 20 percent, but not before it fell another 20 percent. So absolutely yes, Quantitative Easing devalues a currency big time.

              There's lots of debate about whether or not it turns around an economy....I am in the camp that thinks it doesn't. Most people agree that it does put a halt to deflation, and I'm not convinced that's the issue so I see no point in doing it.
              Is God willing to prevent evil, but not able? Then he is not omnipotent. Is he able, but not willing? Then he is malevolent. Is he both able and willing? Then whence cometh evil? Is he neither able nor willing? Then why call him God? - Epicurus

              Comment


                #8
                Originally posted by PM-Junkie View Post
                There's lots of debate about whether or not it turns around an economy....I am in the camp that thinks it doesn't. Most people agree that it does put a halt to deflation, and I'm not convinced that's the issue so I see no point in doing it.
                It didn't stop deflation in Japan.

                Not 100% but I think Japan was a large net exporter when they tried it and didn't already owe the rest of the world a fortune.

                They've no idea what will happen if we do it here. Even if it gets things going in time of for the next election you can bet it will be a big mess long term.

                Comment


                  #9
                  Originally posted by rootsnall View Post
                  It didn't stop deflation in Japan.
                  Not necessarily true - the theory is that deflation would have been far worse had they not applied QE. Most people agree, but it is like most of these things, only a theory.

                  You may of course be right!

                  The joy of economics (if there is one!) is that you can often quote data that proves you're right. So everyone is right, nobody is wrong.....maybe that's one of the reasons we're in the position we're in?
                  Is God willing to prevent evil, but not able? Then he is not omnipotent. Is he able, but not willing? Then he is malevolent. Is he both able and willing? Then whence cometh evil? Is he neither able nor willing? Then why call him God? - Epicurus

                  Comment


                    #10
                    Originally posted by Gonzo View Post
                    The Treasury are now denying that they have got the printing presses on standby, see this article on the bbc today http://news.bbc.co.uk/1/hi/business/7817063.stm

                    So that will be alright then,
                    Actually it was mentioned first on this board, then appeared on Guido and that was commented on back here. So some of the original story has been lost by the time you've seen it I guess.

                    The thrust of the change to the law was that if they are printing more money they no longer have to tell you, and if they decide not to tell you it is against the law to tell anyone if you find out they are.

                    So they are probably printing money already, but no one can say it directly.

                    America has been printing for a while. I would suspect that the speed the UK gov were pushing the law through they've been at it too.

                    Comment

                    Working...
                    X