More Joy from the Bank of England

[Mega]

Oh, hum:-
http://www.bloomberg.com/apps/news?p...d=aSgHBHT3dbEU

After telling us all week that they finished "QE" and it was doultful if they need the last £25 Billion of the £150 Billion they planned to print, We now find...........they are going to print "Another" £50 BILLION!!!!!!!

Thus we are @ £175 Billion of QE, so far..............
Mike

[Techdread]

Re: More Joy from the Bank of England

£2000+ for every person in the UK so far.

Competitive Devaluation.

[*T*]

Re: More Joy from the Bank of England

With no evidence it has helped.

Well, it helped you gold a/c no doubt...

[D-Mack]

Re: More Joy from the Bank of England

And I hought the recession was over

BOE Extends Bond Purchases After Recession Deepened (Update3)

[hayekvindicated]

Re: More Joy from the Bank of England

If stocks crash, The Pound is well and truly screwed. The Pound's recent ferocious rally against the Dollar and other currencies coincides with a massive rally in stocks globally - as Dollar liquidity pushes up asset prices. A crash would have the reverse effect and could send Sterling crashing rapidly back to March levels of $1.35 or even lower.

[Starving Steve]

Re: More Joy from the Bank of England

With no evidence it has helped.

Well, it helped you gold a/c no doubt...

This is the interesting thing: there is no evidence that quantitative easing has worked, nor any evidence that Keynsian economics has worked. Yet, the central banks continue on to print money and de-value money; the universities continue on to teach Keynsian economics and inflation as a valid approachs to economic depression.

Why aren't students rebelling to-day against the garbage being taught in universities that doesn't work and never worked anywhere? Why aren't students challenging the curriculum? Since when do econometric models and economic theories trump realities with inflation, worldwide?

[*T*]

Re: More Joy from the Bank of England

£50bn is 2% of GDP I believe.

Bwahahahaha!

[ThePythonicCow]

Re: More Joy from the Bank of England

If stocks crash, The Pound is well and truly screwed. The Pound's recent ferocious rally against the Dollar and other currencies coincides with a massive rally in stocks globally - as Dollar liquidity pushes up asset prices. A crash would have the reverse effect and could send Sterling crashing rapidly back to March levels of $1.35 or even lower.

Yes, currently the Dollar and US Treasuries are trading inversely to most everything else.

Earlier this week I withdrew from all the anti-dollar, pro-most-anything-else trades I had been holding. I see both the S&P500 and the Dollar hitting major resistance, and the Fed likely in need of reversing field again, slamming everything-else (stocks, pounds and whatever can trade) in order to sell more Treasuries.

Someday this strong negative correlation will recede. This may happen because of TEOTWAWKI, causing -all- tradable paper to collapse, or it may happen because we re-inflate another bubble and the boundary layer of negative correlation moves further up the hierarchy of paper assets. I suppose in theory it could even happen because we humans come to our senses and establish a healthy long-term stable world economic system, though ThisCynicalCow does not believe that is possible anytime (any century) soon.

The usual Heisenberg Uncertainty Quandry ;) applies; to do well, one must get both the direction and the timing of the next change correct, on the fractal time scale of ones investment horizon.

[hayekvindicated]

Re: More Joy from the Bank of England

Yes, currently the Dollar and US Treasuries are trading inversely to most everything else.

Earlier this week I withdrew from all the anti-dollar, pro-most-anything-else trades I had been holding. I see both the S&P500 and the Dollar hitting major resistance, and the Fed likely in need of reversing field again, slamming everything-else (stocks, pounds and whatever can trade) in order to sell more Treasuries.

Someday this strong negative correlation will recede. This may happen because of TEOTWAWKI, causing -all- tradable paper to collapse, or it may happen because we re-inflate another bubble and the boundary layer of negative correlation moves further up the hierarchy of paper assets. I suppose in theory it could even happen because we humans come to our senses and establish a healthy long-term stable world economic system, though ThisCynicalCow does not believe that is possible anytime (any century) soon.

The usual Heisenberg Uncertainty Quandry ;) applies; to do well, one must get both the direction and the timing of the next change correct, on the fractal time scale of ones investment horizon.

Gold's relation to the dollar is where there is a lot of mythology. The traditional view of gold and the dollar is that if the dollar rises (flight to safety), gold falls. But this isn't always the case. For example, gold crossed $1,000 an ounce earlier this year when everything else was slammed.

My gut feeling is that gold may not rise much in dollar terms in the near term but I can't see it falling a lot. Stocks on the other hand will get pummeled hard.