Reply With QuoteIm no financial expert, but to the lay person, it does look like the hyper inflation that the germans went through after WW1. I just cannot imagine bringing a wheelbarrow full of money to asda to buy a loaf.
Quantative easing - what do people think about it? It appears to me to resemble a rights issue - the amount of money increases and yet the assets of the country don't become more valuable. Thus the exchange value of sterling must surely decline- yes/no?
The 75 billion doesn't sound a lot to me, by recent standards. Is this a toe in the water exercise?
Im no financial expert, but to the lay person, it does look like the hyper inflation that the germans went through after WW1. I just cannot imagine bringing a wheelbarrow full of money to asda to buy a loaf.
De omnibus dubitandum
Thank you for titling this 'Printing Money'. I truly hate the expression 'quantitative easing'. It is pure spinola in an attempt to make it sound cleverer than just increasing the money supply. Who thought up this ludicrous expression? They should be taken out and shot. Who do they think they are fooling? Bunch of clowns.
It is a dangerous path to go down for sure.
You cannae kid a kidder kiddo!
"Quantitative Easing" sounds like a euphemism from a laxative advert ...
Be skeptical of the things you believe are false, but be very skeptical of the things you believe are true.
Has the bottom fallen out of your World?
Take Ex=Lax and let the World fall out of your bottom.
You cannae kid a kidder kiddo!
Japan used QE a few years ago. It seems to have had little effect and may have delayed structural reform (isn't that what recessions are for?). The Japanese economy has its own peculiar problems but their recent deflation had chillingly similar causes to the credit crunch.
Shouldn't the government and in this case the central bank be more coutious about something so big? I mean this is a big deal and to still go ahead without knowing what the chances of it working actually are seems quite reckless.
"When a man mounts another man, the throne of God shakes." - beardy weirdo from the desert
Some of you might have caught Jeff Randall on this yesterday (interesting to note that the Governor of the Bank of England refused to be interviewed by Randall - Sky had to send a lackey) and especially the interview with Dr Ros Altman from LSE.
Summary of that interview:
1) Governor has run out of things to do but not his fault - government's fault
2) We have no idea whether this will work but it hasn't elsewhere
3) We are nearly certain to have much higher inflation and possibly very much higher inflation
The comments out there are suggesting that holders of cash may be better off buying assets rather than holding cash. Most however are just holding it waiting for things to turn around.
"No statement should be believed because it is made by an authority." Robert Heinlein
I'm not convinced Japan's QE even worked. Yes they got out of deflation but they are heading rapidly back towards it now. Why? Because of QE? Or because of oil and commodity prices and the China boom followed by the credit crunch?
I'm not sure QE can work in a globalised economy because one country can only put up relatively puny amounts compared to global capital flows. I'm betting QE won't make any difference but people will say it has! Watch out for dodgy statistics ahead!
I am quite pessimistic about the prospects for economic recovery here in the states.
It's going to get a lot worse before it gets better, and I think it'll take 10 years to recover.
...I'm not sure. There was no wholesale collapse, no meltdown and (significantly) no inflation. Been reading some stuff on this and it seems that Japan's QE was a bit smoke and mirrors. Plus of course they had the savings to absorb the impact - not sure the UK and US have.Originally Posted by Mulder
The inflation stuff in definitely watch this space...betting on moderate inflation seems a good bet to me.
"No statement should be believed because it is made by an authority." Robert Heinlein
Jim Rogers has some good stuff to say on this in his channel 4 interview.
Search for "Jim Rogers Channel 4" in Google. The long version is very scathing of the UK Govt and he says it wont work.
My opinion is
If you have huge debts or loans its good for you.
If you own property outright its neutral but it will help to slow the decline in property prices which is helpful if you have investment properties.
If you have savings or fixed income its very bad.
I have no loans so I hate it.
That said I didn't want the bank with my savings to be allowed to fail either.
Last edited by ChrisCuba; 7th March 2009 at 02:33 PM. Reason: typo
Posting Permissions
Bookmarks