We are going into a Weimar Republic-type of inflation – get used to it," says bond-fund manager Stewart Cowley at Old Mutual Asset Managers.
The Bank of England has now bought UK government bonds equal to 91% of new gilts issued in fiscal-year 2009 to date and more than one quarter of total government spending.
Germany's Weimar Republic monetized 50% of government expenditure between 1921 and 1923, leading to inflation rates above one million per cent per year. (Learn more about Gold & Hyperinflation here...)
The Bank of England has now bought UK government bonds equal to 91% of new gilts issued in fiscal-year 2009 to date and more than one quarter of total government spending.
Germany's Weimar Republic monetized 50% of government expenditure between 1921 and 1923, leading to inflation rates above one million per cent per year. (Learn more about Gold & Hyperinflation here...)
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