making money out of thin air (1 Viewer)

[Froog]

"quantitative easing"

http://www.guardian.co.uk/business/2009/mar/06/bank-of-england-printing-money1

whats all this about then?

 

[broken arm]

scrapping the bottom of the monetary intervention barrel.

the central bank normally rely on interest rate interventions but they can't go much futher as we're down to 0.5% ---- which is twat for people like me who have been saving instead of borrowing...

 

[Froog]

so a lower interest rate on loans and things is supposed to promote spending but at the same time making less money for banks/government?

 

[broken arm]

so a lower interest rate on loans and things is supposed to promote spending but at the same time making less money for banks/government?

mmm

they are trying to encourage more lending to businesses by injecting money into the system. They don't actually print cash but use the money to buy up debts and shit.

Japan tried the same a while back and I don't think it worked that well.

http://news.bbc.co.uk/1/hi/business/7927137.stm

 

[Froog]

and does making more money drastically lower its value?

 

[It Will Never Last]

What it means is they've run out of ideas.

This ride is gonna get a hell of a lot bumpier methinks.

 

[egg_]

scrapping the bottom of the monetary intervention barrel.

the central bank normally rely on interest rate interventions but they can't go much futher as we're down to 0.5% ---- which is twat for people like me who have been saving instead of borrowing...

Move your money into a euro zone account, why dontcha? rabobank or something

 

[Sufi]

and does making more money drastically lower its value?

It will devalue the currency. But they are taking a calculated risk that this will encourage people from other countries to spend money in Britain.

 

[Umfufu]

Is it just me or does the whole "economy" thing seem like a big pyramid scheme?

It's all fine as long as we keep moving money around between ourselves but now that people have gotten jittery & started hanging on to their money, it's all gone to bollocks.

I blame Joe Duffy.

 

[classic seanc]

Move your money into a euro zone account, why dontcha? rabobank or something

Rabobank rates have gone to complete shit as well. I'd go for Credit Unions or Postal Bonds or somesuch.

Broken Arm: Do you think that Britain will join the Euro soon?

 

[billygannon]

Broken Arm: Do you think that Britain will join the Euro soon?

It'll be a very long time before Britain even seriously considers this.
It's a political consideration as much as it is an economic one. Britain would sooner adopt the dollar than the euro.

 

[magnetize]

[video=google;-9050474362583451279]http://video.google.com/videoplay?docid=-9050474362583451279&ei=ub2aScW8NoqGjQLS2OSXCg&q=money+as+debt[/video]

 

[jane]

Is it much different from this? Where to find the answers, how to lie, how to fake it, how to scheme, when to face the truth, when to dream, etc.

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[Froog]

the yanks at it now (i think) :

http://www.irishtimes.com/newspaper/frontpage/2009/0319/1224243069491.html

 

[Cryptid]

Is there a danger of hyper-inflation with this? If so, why?

 

[Pedronimus]

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[Cryptid]

Yes, good one.

I've done a tiny amount of reading on hyperinflation, and I think it might be an issue. Or at least very high inflation. David McWilliams on the topic: http://www.independent.ie/opinion/c...eds-to-run-up-a-frightening-debt-1608220.html. Wiki: http://en.wikipedia.org/wiki/Hyperinflation. Tell me I'm wrong!

Two possibly good things: Gold, as a hedge for inflation, is already at a very high price. Also, there are no other particularly stable currencies for people to buy as an alternative to the Dollar, Sterling and (when they start this malarky) the Euro.

 

[ratmonkey]

Two possibly good things: Gold, as a hedge for inflation, is already at a very high price. Also, there are no other particularly stable currencies for people to buy as an alternative to the Dollar, Sterling and (when they start this malarky) the Euro.

The wizened old Krone.

 

[7 - No tomorrow]

Is there a danger of hyper-inflation with this? If so, why?

If there's more money in circulation, people and institutions that own a lot of it will sell it as it is inherently less valuable.
This causes its value to go down.
Also the costs of goods and services will tend to rise relative to the increased amount of money in the economy.


I'm not an economist but this feels like very desperate stuff indeed.

 

[Cryptid]

I read up a bit since I posted that but thanks.

Sure, as long as we have our health. We'll be grand!