The BRITISH to do +£500 Billion QE !!!!!!!

[Mega]

http://www.telegraph.co.uk/finance/e...ists-warn.html
Sh*t
Mike

[Starving Steve]

Re: The BRITISH to do +£500 Billion QE !!!!!!!

Growing-up as a kid in San Jose, I do remember the hot afternoons in late summer: We would sit on the floor and play Monopoly. About late-afternoon, when it became obvious who would win the game, we would try an economic experiment in order to give the losers another chance, or at least more time to stay in the game. We would get the monopoly money from another Monopoly game box and dump it into the bank so that the bank could lend-out funds to those who were about to lose. So, with IOUs to the bank, the game would proceed for a few more minutes. The losers would hope for a miracle--- maybe to end-up in jail for a while and not have to pay rents.

Sometimes we would change the rules of Monopoly so that building could be uneven on properties, or maybe building could be on properties without a monopoly. Sometimes we would allow unlimited construction on a property; i.e, we might allow two hotels on one property. We could do this amendment because we had two Monopoly game boxes with double the houses, double the hotels, and double the money to work with......... The losers would hope for a miracle.

After a few more minutes of action--- quantitative-easing to expand the M1 in the bank, de-valuing the currency, allowing uneven building, zero-interest loans from the bank, "welfare for the poor", unlimited building schemes, $400 (instead of $200) for passing Go, etc.--- the end result of the Monopoly game would be unchanged. After a few more minutes of hilarious torture and agony, the winner would end-up with all of the new money and be even richer. Everyone else would be bankrupt once again. Game over.

It was amazing how quickly the winner would win once again, like in ten or fifteen more minutes of play. "Game-over."

I suspect that we are now in the final few minutes of the Monopoly game now in the real world, with quantitative-easing, zero-interest rates, Operation Twist, and all of the other emergency measures ( "arrows in the quiver" ) of the Federal Reserve Bank, the Bank of England, the Bank of Japan, and the other central banks. The Bank of China is now the winner in this Monopoly game, just as it was before.... because China has the manufacturing monopoly in the world, and the rest of the world imports manufactured goods from China.......... "Game-over."

China won this game fair-'n-square. It followed the rules. The mistake made in England and America, not to mention much of the rest of the world, was to try to substitute manufacturing jobs with jobs in service industries or with synthetic jobs created in government. And here we are now..... Clearly, Keynesian economics did not work.

[lsa420]

Re: The BRITISH to do +£500 Billion QE !!!!!!!

Growing-up as a kid in San Jose, I do remember the hot afternoons in late summer: We would sit on the floor and play Monopoly. About late-afternoon, when it became obvious who would win the game, we would try an economic experiment in order to give the losers another chance, or at least more time to stay in the game. We would get the monopoly money from another Monopoly game box and dump it into the bank so that the bank could lend-out funds to those who were about to lose. So, with IOUs to the bank, the game would proceed for a few more minutes. The losers would hope for a miracle--- maybe to end-up in jail for a while and not have to pay rents.

Sometimes we would change the rules of Monopoly so that building could be uneven on properties, or maybe building could be on properties without a monopoly. Sometimes we would allow unlimited construction on a property; i.e, we might allow two hotels on one property. We could do this amendment because we had two Monopoly game boxes with double the houses, double the hotels, and double the money to work with......... The losers would hope for a miracle.

After a few more minutes of action--- quantitative-easing to expand the M1 in the bank, de-valuing the currency, allowing uneven building, zero-interest loans from the bank, "welfare for the poor", unlimited building schemes, $400 (instead of $200) for passing Go, etc.--- the end result of the Monopoly game would be unchanged. After a few more minutes of hilarious torture and agony, the winner would end-up with all of the new money and be even richer. Everyone else would be bankrupt once again. Game over.

It was amazing how quickly the winner would win once again, like in ten or fifteen more minutes of play. "Game-over."

I suspect that we are now in the final few minutes of the Monopoly game now in the real world, with quantitative-easing, zero-interest rates, Operation Twist, and all of the other emergency measures ( "arrows in the quiver" ) of the Federal Reserve Bank, the Bank of England, the Bank of Japan, and the other central banks. The Bank of China is now the winner in this Monopoly game, just as it was before.... because China has the manufacturing monopoly in the world, and the rest of the world imports manufactured goods from China.......... "Game-over."

**Like**

[GRG55]

Re: The BRITISH to do +£500 Billion QE !!!!!!!

Unusually straight talk for a Central Bank Governor...

[tallone]

Re: The BRITISH to do +£500 Billion QE !!!!!!!

Growing-up as a kid in San Jose, I do remember the hot afternoons in late summer: We would sit on the floor and play Monopoly. About late-afternoon, when it became obvious who would win the game, we would try an economic experiment in order to give the losers another chance, or at least more time to stay in the game. We would get the monopoly money from another Monopoly game box and dump it into the bank so that the bank could lend-out funds to those who were about to lose. So, with IOUs to the bank, the game would proceed for a few more minutes. The losers would hope for a miracle--- maybe to end-up in jail for a while and not have to pay rents.

Sometimes we would change the rules of Monopoly so that building could be uneven on properties, or maybe building could be on properties without a monopoly. Sometimes we would allow unlimited construction on a property; i.e, we might allow two hotels on one property. We could do this amendment because we had two Monopoly game boxes with double the houses, double the hotels, and double the money to work with......... The losers would hope for a miracle.

After a few more minutes of action--- quantitative-easing to expand the M1 in the bank, de-valuing the currency, allowing uneven building, zero-interest loans from the bank, "welfare for the poor", unlimited building schemes, $400 (instead of $200) for passing Go, etc.--- the end result of the Monopoly game would be unchanged. After a few more minutes of hilarious torture and agony, the winner would end-up with all of the new money and be even richer. Everyone else would be bankrupt once again. Game over.

It was amazing how quickly the winner would win once again, like in ten or fifteen more minutes of play. "Game-over."

I suspect that we are now in the final few minutes of the Monopoly game now in the real world, with quantitative-easing, zero-interest rates, Operation Twist, and all of the other emergency measures ( "arrows in the quiver" ) of the Federal Reserve Bank, the Bank of England, the Bank of Japan, and the other central banks. The Bank of China is now the winner in this Monopoly game, just as it was before.... because China has the manufacturing monopoly in the world, and the rest of the world imports manufactured goods from China.......... "Game-over."

China won this game fair-'n-square. It followed the rules. The mistake made in England and America, not to mention much of the rest of the world, was to try to substitute manufacturing jobs with jobs in service industries or with synthetic jobs created in government. And here we are now..... Clearly, Keynesian economics did not work.

Hilarious picture. Our games of Monopoly were very similar in Garden Grove, California. In addition, the winner was usually laughing at the losers, and sometimes the game ended with a fight.

[unlucky]

Re: The BRITISH to do +£500 Billion QE !!!!!!!

Unusually straight talk for a Central Bank Governor...

Mervyn King is right. There is no way out for the UK except money printing. And the time to do it is *NOW*, while investors are too scared to worry about inflation. The time cannot be far off when investors demand an inflation premium to hold UK gilts. At that point there will have to be a painful reverse-course. But just think of all that UK debt, both public and private, getting eroded at a nifty 5% per year (and more!) in the meantime.

Bernanke better hurry up or the US will get left behind!

[Chris Coles]

Re: The BRITISH to do +£500 Billion QE !!!!!!!

The problem is caused by there is no accepted system; set of rules; private sector institution; accepted by everyone; to enable the investment of the savings of the people, from within their local communities; as new equity capital; into new, free enterprise based competitive businesses; to create a raft of continuous new job creation; upon which the rest of the economy can stand.

Ergo, all the rules governing the savings industries are slanted towards debt and away from the use of equity capital.

Right now it is an illegal act for any FIRE economy institution to invest at arms length into new grass roots businesses. They are forced to instead buy, (here in the UK), Gilts. That is on the basis that by so doing, they reduce risk....

[lektrode]

Re: The BRITISH to do +£500 Billion QE !!!!!!!

The problem is caused by there is no accepted system; set of rules; private sector institution; accepted by everyone; to enable the investment of the savings of the people, from within their local communities; as new equity capital; into new, free enterprise based competitive businesses; to create a raft of continuous new job creation; upon which the rest of the economy can stand.

Ergo, all the rules governing the savings industries are slanted towards debt and away from the use of equity capital.

methinks you have hit the root of the problem right here, mr c.
why is it that the .gov (notionally/formerly known as We The People) has to 'borrow' money to fund operations? (aside from the fact that our (US) elected 'representatives' cant seem to bring themselves to even come up with a budget, never mind stay within it) - when the .gov, sucking up TRILLIONS in 'revenues' etc, should have a capital base from which to fund the _necessary_ expenditures for infrastructure/improvements - this capital base ought to be the 'social security trust fund' (had they not already blown it) - should it not?

it was one thing when in the past the .gov sold 'savings bonds' to The Public to fund sudden/emergency needs (ww2 for instance) - its another thing entirely when trillions in debt are held/traded/gambled by shadowy entities known as 'investment banks' and foreign entities that may not have our best interests in mind when they are tapped to 'fund' every day ops expenses - never mind when these same entities gamble and LOSE hundreds of billions/trillions and then get bailed out with "money for nuthin, like on MTV" while ZIRP allows them to pay us squat on our hard-earned savings, in the name of 'saving the system' - saving what, precisely?
the 'system' that allows them to earn risk-free returns in exchange for 'loaning' the .gov money to fund everyday operational expenses?

personally i find it outrageous that these bastards can take our money, pay us not even 1%/annum, while at same time collect again on riskfree returns from the .gov borrowing, and then RISK it all making stupid/greedy bets and when they screw up?
WE GET TO BAIL THEM OUT with a steadily and stealthily eroded currency that we then have to pay them interest on to borrow?

i may not know precisely what i'm writing about here, but even i know WE ARE GETTING SCREWED SOMEHOW, while they get billions in 'money for nuthin'

[aaron]

Re: The BRITISH to do +£500 Billion QE !!!!!!!

I always thought it had nothing to do with risk, but fairness. That what was so infuriating about all the MBS purchases in the U.S. --> they were direct payments to bankers. At least when the central bank buys Treasuries, all citizens benefit or are hurt equally.

[unlucky]

Re: The BRITISH to do +£500 Billion QE !!!!!!!

methinks you have hit the root of the problem right here, mr c.

The system has certainly screwed the people. I think Mr King understands this (now), and he has said as much in public. Recent comments from the chancellor in the UK (that too much debt is the root of the problem) also seem to show that the UK authorities have belatedly acquired an accurate perspective on their predicament. That at least is a positive sign for the long term. Right now tho, gotta print!

[metalman]

Re: The BRITISH to do +£500 Billion QE !!!!!!!

http://www.itulip.com/forums/showthr...n-Eric-Janszen

[lektrode]

Re: The BRITISH to do +£500 Billion QE !!!!!!!

... The mistake made in England and America, not to mention much of the rest of the world, was to try to substitute manufacturing jobs with jobs in service industries or with synthetic jobs created in government. And here we are now..... Clearly, Keynesian economics did not work.

+1
must say mr steve, when you is right, you is right!

tho the jury is definitely still out, on whether china has won yet, or not...
as we see another 'tug, tug, tug' is apparently doing just what EJ said would happen, is it not?

now i gotta go play (read) the game metalman just dug up...

[sishya]

Re: The BRITISH to do +£500 Billion QE !!!!!!!

Growing-up as a kid in San Jose, I do remember the hot afternoons in late summer: We would sit on the floor and play Monopoly. About late-afternoon, when it became obvious who would win the game, we would try an economic experiment in order to give the losers another chance, or at least more time to stay in the game. We would get the monopoly money from another Monopoly game box and dump it into the bank so that the bank could lend-out funds to those who were about to lose. So, with IOUs to the bank, the game would proceed for a few more minutes. The losers would hope for a miracle--- maybe to end-up in jail for a while and not have to pay rents.

Sometimes we would change the rules of Monopoly so that building could be uneven on properties, or maybe building could be on properties without a monopoly. Sometimes we would allow unlimited construction on a property; i.e, we might allow two hotels on one property. We could do this amendment because we had two Monopoly game boxes with double the houses, double the hotels, and double the money to work with......... The losers would hope for a miracle.

After a few more minutes of action--- quantitative-easing to expand the M1 in the bank, de-valuing the currency, allowing uneven building, zero-interest loans from the bank, "welfare for the poor", unlimited building schemes, $400 (instead of $200) for passing Go, etc.--- the end result of the Monopoly game would be unchanged. After a few more minutes of hilarious torture and agony, the winner would end-up with all of the new money and be even richer. Everyone else would be bankrupt once again. Game over.

It was amazing how quickly the winner would win once again, like in ten or fifteen more minutes of play. "Game-over."

I suspect that we are now in the final few minutes of the Monopoly game now in the real world, with quantitative-easing, zero-interest rates, Operation Twist, and all of the other emergency measures ( "arrows in the quiver" ) of the Federal Reserve Bank, the Bank of England, the Bank of Japan, and the other central banks. The Bank of China is now the winner in this Monopoly game, just as it was before.... because China has the manufacturing monopoly in the world, and the rest of the world imports manufactured goods from China.......... "Game-over."

China won this game fair-'n-square. It followed the rules. The mistake made in England and America, not to mention much of the rest of the world, was to try to substitute manufacturing jobs with jobs in service industries or with synthetic jobs created in government. And here we are now..... Clearly, Keynesian economics did not work.

good analogy, end result - people with money(capital) make more money.

[Techdread]

Re: The BRITISH to do +£500 Billion QE !!!!!!!

I always thought it had nothing to do with risk, but fairness. That what was so infuriating about all the MBS purchases in the U.S. --> they were direct payments to bankers. At least when the central bank buys Treasuries, all citizens benefit or are hurt equally.

Looks like the Baby Boomer's will be hit the hardest.
http://uk.news.yahoo.com/pensions-wo...045449474.html