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Just read this:-
http://www.telegraph.co.uk/finance/e...o-more-QE.html
Now this chap in the coments section sums up whats,what!:-
Why do they keep pretending that QE has anything to do with helping the economy?
We still have a £100bn a year deficit so the government must continue with QE, it's the only way they can maintain spending. What they cannot do is sell the gilts to the open market at rates that do not represent the risk, i.e. lending to a debt ridden banana/house price debt republic. The B of E has bought £32bn of the last £34bn debt issued. Hardly anybody else wants it so the government must print money to buy it or the yields would soar to reflect the risk.
The B of E's Funding for Lending is a last desperate attempt to persuade people to borrow cheap money to buy ridiculously overpriced houses to try generate the only "growth" they know, i.e. house price inflation. If people refuse to take the debt slavery thrust down their throats with years of sub standard living due to servicing all that debt, them the game us up for them. There is only so much QE they can get away with before they have to stop printing and our interest rates will soar. The B Of E are running the ultimate bluff, sat there playing 3 card brag holding 5-3-2, holding houses worth a fraction of what they are for sale at, hoping some mugs let them buy the pot instead of calling their bluff.
Mike
http://www.telegraph.co.uk/finance/e...o-more-QE.html
Now this chap in the coments section sums up whats,what!:-
Why do they keep pretending that QE has anything to do with helping the economy?
We still have a £100bn a year deficit so the government must continue with QE, it's the only way they can maintain spending. What they cannot do is sell the gilts to the open market at rates that do not represent the risk, i.e. lending to a debt ridden banana/house price debt republic. The B of E has bought £32bn of the last £34bn debt issued. Hardly anybody else wants it so the government must print money to buy it or the yields would soar to reflect the risk.
The B of E's Funding for Lending is a last desperate attempt to persuade people to borrow cheap money to buy ridiculously overpriced houses to try generate the only "growth" they know, i.e. house price inflation. If people refuse to take the debt slavery thrust down their throats with years of sub standard living due to servicing all that debt, them the game us up for them. There is only so much QE they can get away with before they have to stop printing and our interest rates will soar. The B Of E are running the ultimate bluff, sat there playing 3 card brag holding 5-3-2, holding houses worth a fraction of what they are for sale at, hoping some mugs let them buy the pot instead of calling their bluff.
Mike
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