Quantative Easing

[BlasterBates]

This now seems to be inevitable..
comment
This comment raises a good point...who should be responsible the bank or the government.

What will happen?

Basically they say the government simply spends money without having to issue any gilts.

 

[Doggy Styles]

Quantitative easing is well underway. The Bank’s balance sheet has ballooned from well under £100 billion last September, to nearly £240 billion by the year end.

Source: John Redwood, 8-Jan-09

 

[d000hg]

Everyone on this board says QE is inevitably going to lead to runaway inflation like happened in Germany and Zimbabwe. But even if you don't trust MPs, they do have access to experienced economists. So one has to think they have a reason for thinking it won't go wrong, are there any articles on what's supposed to happen with QE and why it (apparently) won't go belly-up?

 

[Doggy Styles]

Everyone on this board says QE is inevitably going to lead to runaway inflation like happened in Germany and Zimbabwe. But even if you don't trust MPs, they do have access to experienced economists. So one has to think they have a reason for thinking it won't go wrong, are there any articles on what's supposed to happen with QE and why it (apparently) won't go belly-up?

Would these be different experienced economists to the ones that have been advising them for the past 11 years?

 

[OwlHoot]

Everyone on this board says QE is inevitably going to lead to runaway inflation like happened in Germany and Zimbabwe. But even if you don't trust MPs, they do have access to experienced economists. So one has to think they have a reason for thinking it won't go wrong, are there any articles on what's supposed to happen with QE and why it (apparently) won't go belly-up?

Gordon Brown is interested in one thing, and one thing only - Winning the next election come what may.

Provided nothing goes obviously belly up before then (first half of this year most likely), it doesn't matter to him at all what happens afterwards whether or not he wins.

 

[Cyberman]

Gordon Brown is interested in one thing, and one thing only - Winning the next election come what may.

Provided nothing goes obviously belly up before then (first half of this year most likely), it doesn't matter to him at all what happens afterwards whether or not he wins.

Absolutely true. This is GB's 'scorched earth' policy that could be extremely costly for generations to come. 1970s revisited !!

 

[GreenerGrass]

Providing you can keep your job/contract QE doesn't have to be all bad, your mortgage burden could decrease over the next few years and if you move your ISA & SIPP funds into a mixture of gold, oil and index-linked gilts you can at least reduce the worst effects and benefit from the positives.

I can see pensioners who have all their assets in cash being in a pickle though.

I'm presuming we don't get Weimar/Zimbabwean hyperinflation of course.

 

[PM-Junkie]

Everyone on this board says QE is inevitably going to lead to runaway inflation like happened in Germany and Zimbabwe. But even if you don't trust MPs, they do have access to experienced economists. So one has to think they have a reason for thinking it won't go wrong, are there any articles on what's supposed to happen with QE and why it (apparently) won't go belly-up?

I can't figure out if you are a naive fool, or if you are just trying to wind people up.

The jury is out I think.

 

[Cyberman]

I can't figure out if you are a naive fool, or if you are just trying to wind people up.

The jury is out I think.

Definitely a naive fool !!!! No jury necessary.

 

[d000hg]

I can't figure out if you are a naive fool, or if you are just trying to wind people up.

The jury is out I think.

I'm sorry but if it's so obvious that QE is guaranteed to cause hyperinflation, I think even Gordon might realise that, if it's the equivalent of economics 101.

My question is, is it that cut-n-dried or are there cases where it has been used to either positive effect, or at least not total disaster? It's very well saying "is that the same advisors in power for 11 years" but they are still at least as well qualified as anyone here to advise. The popular news is only saying QE "might cause inflation to rise", no mention of hyperinflation, despite being quick to be reactionary normally, so that suggests QE is not the A-bomb people here are calling it. If it were, even the british public would notice.

How about you stop insulting people and answer the question, if it's so easy?