Money supply & gold

[M_B]

The BOE can buy private corporate bonds aswell as govt bonds.

[SantaClaus]

The BOE have diluted the value of the £ with quantative easing.
And the UK's credit rating is questionable.

And as BrownIssue and DimPrawn say, imports will become very expensive.

Have a look at the recent Jim Rogers interview on Channel 4 and you will see we are in dire straights.
He also claims the future boom industry here will be farming. City boys will be driving taxis and farmers will be driving Porsches.

[M_B]

The BOE have diluted the value of the £ with quantative easing.
And the UK's credit rating is questionable.

Have a look at the recent Jim Rogers interview on Channel 4 and you will see we are in dire straights.

Yeah but so is everyone else.

[Bunk]

Dont they have to get govt permission to do this first ?

According to this they have. The chancellor has written to Mervyn King agreeing to £75 billion of quantative easing.

[suityou01]

So you don't think printing money will cause the £ to devalue.
Making imported goods more expensive.
Causing inflation.

Oh yes. And just watch us start using Euros once we reach parity. Its all in the plan.

[icarus]

We're told that deflation is a terrible thing and we have to print and print to prevent it. If deflation kicks in, apparently, everyone will stop spending because everything will be cheaper tomorrow. But look at computer hardware: 30+ years of incredible deflation - and did people still buy computers? "Deflation" is just a smokescreen. The real point of printing money is to cause savers to bail out the debtors (through wealth destruction). I really recommend Peter Schiff's analysis of this: www.europac.net (American, but applies equally to UK).

[Bagpuss]

The BOE have diluted the value of the £ with quantative easing.
And the UK's credit rating is questionable.

And as BrownIssue and DimPrawn say, imports will become very expensive.

Have a look at the recent Jim Rogers interview on Channel 4 and you will see we are in dire straights.
He also claims the future boom industry here will be farming. City boys will be driving taxis and farmers will be driving Porsches.

and by the 1980s everyone will be working a 3 day week thanks to computers

[alreadypacked]

Oh yes. And just watch us start using Euros once we reach parity. Its all in the plan.

I think they will let it drop below parity, for a while arrange for it to go back to parity, then roll that plan out.

I am just not sure what problem they would solve doing that.

[PM-Junkie]

Stupid novice question:

When the government prints this money how is it "injected" into the economy?

Not a stupid question at all. No money actually gets printed, the BoE simply buys assets off banks (eg government bonds) so the banks have more liquidity, the idea (hope) being that that increased liquidity can be passed on to customers in the form of credit, and the economy comes up smelling of roses quicker.

That is one school of thought anyway. The other is that it is tantamount to throwing petrol on a fire. The truth is, nobody knows - so lots of people have their fingers crossed right now.

[BrowneIssue]

the BoE simply buys assets off banks (eg government bonds) so the banks have more liquidity

So, the Treasury has just delivered £1,500,000,000 to the shareholders of the banks?

Oh tulip.

That's it then.

We're doomed.