quantitative easing

[j1979]

so the Bank of England is will probably start printing money, so who they going to give it to?

[SiM]

They don't create money to give out directly. They will buy bonds...

edit: read wiki

'Quantitative' refers to the money supply; 'easing' refers to reducing the pressure on banks.[1] A central bank can do this by buying government bonds (Treasury securities in the United States) in the open market, or by lending money to deposit-taking institutions, or by buying assets from banks in exchange for currency, or any combination of these actions.

[Blitzen]

so the Bank of England is will probably start printing money, so who they going to give it to?

Anyone called Abdul or Obama probably!

[iranu]

I did a bit of quantitative easing at about 8.20 tonight.....








after a particularly large meal.

[transylvanic]

Yea, it's only likely to go towards easing the now hu-jungous deficit the UK is running. The negative effect is, of course, that the Pound is going to be devalued by over-supply. Whenever there is more cash in the marketplace, and all other things stay the same (or continue on the same path), inflation and currency devaluation result.

I'm getting the feeling that the US and UK might go to the extreme measure of giving themselves a bond amnesty. That is, all debt that they hold to people, they will just write off themselves because they can't pay it. Of course, that is called bankruptcy, but I think we all know they will never accept the label, only the procedure.

[j1979]

They don't create money to give out directly. They will buy bonds...

edit: read wiki

http://en.wikipedia.org/wiki/Government_bond

"Government bonds are usually referred to as risk-free bonds, because the government can raise taxes or simply print more money to redeem the bond at maturity."

so the bank of england prints more money to buy bonds which are "risk free" and if the bond goes tits up the government can print even more money?

so i still dont understand!!

[shadowmaster]

so i still dont understand!!

Slightly off topic, but this book is really good in giving a broad overview of our financial system and the history behind it. Well worth a read.

http://www.amazon.co.uk/Ascent-Money...266239&s=books

[kalniel]

http://en.wikipedia.org/wiki/Government_bond

"Government bonds are usually referred to as risk-free bonds, because the government can raise taxes or simply print more money to redeem the bond at maturity."

so the bank of england prints more money to buy bonds which are "risk free" and if the bond goes tits up the government can print even more money?

so i still dont understand!!

Bonds are an IOU - you give a bit of money to the goverment, and they give it back after x time with y interest. The quantitative easing bit comes from them not needing to have the money in the bank to pay you back with, they just 'print' more and give it to you. That has the effect of making every bit of money that is in circulation worth a bit less - aka inflation goes up, which is exactly what they're trying to achieve, to prevent deflation.

[TheAnimus]

The nock on effect is that it will cost even more to go on holiday or buy anything thats not made in the UK. Thats pretty much everything.

[kalniel]

The nock on effect is that it will cost even more to go on holiday or buy anything thats not made in the UK. Thats pretty much everything.

True, but the effects of a weaker pound are considered far more preferable to the effects of deflation. And it only takes other countries joining in to negate the effect on currency.

[TheAnimus]

Yup, i'm just getting annoyed that i effectively have even less, and its making things like planning a holiday this year harder!

[badass]

so i still dont understand!!

But don't let that stop you from posting your opinions on the financial system, what will happen to it and what you think should happen every opportunity you get

[j1979]

But don't let that stop you from posting your opinions on the financial system, what will happen to it and what you think should happen every opportunity you get

i dont understand how its going to help, .. i started the thread as a tongue in check question.(i know humour is lost on you)

and after my last contact with you via PM when i advised you to READ the thread. i thought i was on your ignore list after you sent me this PM..back.. which i thought was a bit heavy TBH. ive clashed with others on this forum, namely theAnimus but i think you take things too serious...


Originally Posted by badass

You are a waste of the oxygen you consume. You probably think you are clever PMing me that. Instead of wasting your time PMing me trying to get one up since I've hit a nerve, how about spending your time looking for a proper job that pays enough so you can afford a house

Originally Posted by j1979

your the ones who's nerve has been well and truly hit. your the one who got the thread closed not me, you full-on nut case.

Originally Posted by badass

You argue like a child or maybe an adolescent having a tantrum.
That said most adolescents probably get paid more than you. Keep dreaming about being able to afford a house - thats the closest you'll ever get to owning one!

Originally Posted by j1979

Did you tell your friend of a friend who can't afford to pay a IT tech / computer shop that "You fail at life" when they gave you the beer?

and i think you meant to say Paid not pain.... so next time READ ... READ... READ.. before you send a message.

Originally Posted by badass

No i didn't because they weren't some idiot working class hero that thinks they deserve more simply because others have more. They were nice people.

Your fixation with the word read amuses me. Have you just learned its meaning?

Lets see how many times you can repeat it in one conversation. In fact lets not. I'm bored now. I'll find some other idiot to wind up I think. You are added to my ignore list

[Clunk]