Bank Of England: QE Extended By £75bn

Bank Of England: QE Extended By £75bn

uk.news.yahoo.com

The Bank of England has voted to extend its programme of quantitative easing (QE), amid mouting pressure to inject new life into the UK's faltering economic recovery.

There had been growing support within the Monetary Policy Committee (MPC) for a new round of asset purchases to boost money supply and the move suggests there is now deep concern about double-dip recession.

The nine-man panel decided to extend the QE scheme beyond the current £200bn by another £75bn.

(visit the link for the full news article)

So here we go again, more QE, more printing money thats just kicking the can down the road.

How long can our governments keep doing this for before it all implodes. I mean it obviously is not going to fix any problems and it seems to me that this is just another sign the cuts by the coalition are just not working at all.

*sigh* what is everybody else's thoughts on this?

uk.news.yahoo.com
(visit the link for the full news article)

reply to post by moosevernel


All they know how to do anymore is kick the can down the road. The running modus operandi is a short term fix for a long term problem. They have no idea what will really fix the economy so they will do anything even if it doesn't work, just to seem like they are doing something.

reply to post by SpaDe_


couldnt agree more, which is why i wish they would just let it run its course or actually come up with a solution (which to be honest i dont think there is one) instead of prolonging the inevitable

This will do nothing to improve the situation, the banks will fail to pass on the cash in the way they are supposed to just like last time. And this will also drive up inflation which means the public will have less cash to spend. This is the real reason our economy is stalling not the government cuts that the BBC/Labour party and unions keep withering on about.

reply to post by solidshot


to be honest i think its combination of the 2, and i dont care about who says what and who is to blame blah blah

all the parties are the same imo and none of them care as long as money stays in thier pockets

I thought they where £50bn short of using the last £200bn, So does that mean in reality they now have £125bn to inject?

I simply have no idea why they are embarking on this route as I it seems to me that it didn't work last time.

reply to post by moosevernel


imo:

the governments are victims of having allowed the financial sector to become predatory.

now, they either feed the scams of hedge funds being fat parasites on the commodities, or else the pension funds, banks, etc. will go broke.

kicking the can allows to delay the inevitable, prolonging the economic agony.

so many layers of banking scams, trillions of "assets" based on overvalued corporate IOUs.

the politicians and bankers are just playing for time, anything but reality.

i get the impression that since there is very little reality left to the numbers, they believe the system can be scammed forever.

It's the mindset of society as a whole.

Look at what we do with our family and friends. Even when they're diagnosed with a terminal illness, we poke them, prod them, pump them full of medications and narcotics just to keep them alive . . . more for our comfort than theirs. In most cases, the patient just wants the suffering to end.

Really, what is going on with the economies around the world isn't any different. Collectively, they suffer from a terminal illness and those in positions of power continue to poke it, prod it and pump it full of fiscal medications and economic narcotics just to keep it alive . . . more for their comfort than ours. Many of us just want the suffering to end.

Go figure.

I'm not really sure I understand the point in it all to be honest. It's not like these billions are backed by anything, it's just a case of creating more zeros on a computer screen. The money goes straight to the banks and then what exactly do we get in return? The whole thing befuddles me, I should probably do a little research to get more of an understanding.

reply to post by woodwardjnr


Like you I'd like to know what actually happens here.

So somebody at the BoE gets a spreadsheet up on a screen and edits one of the cells to add £75b.

Then what ? Where does the money go ? What do they do with it ?

I wouldn't mind so much if a cheque came through my door with a share of it.

Quantitative easing is just a delay tactic.The money wont make it to us and
just be used by the banks do deal with the debt they have.
In the end it just add to the inflation making people just a little bit more worst off.

But QE sounds soooo impressive a lot better than printing money.

reply to post by moosevernel


They are not printing more money this will be done electronically. This will hopefully get the banks lending again, it can only be good for the UK.

reply to post by moosevernel


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