Reply to: Nationwide Building Society House Price Index March 2019

[meridian]

No matter how you spin it; it's still in effect the EU - Eurogroup being the collection of EU states in the euro currency collective.

Stating facts is not spin. You stating “in effect” is spin.

HTH, but at this point I seriously doubt it.

[TheGreenBastard]

Not quite. Executive members are put forward by the Euro countries, and discussed within the Eurogroup before going to the Council to agree on a recommendation. Given that this is political, it’s likely that the Eurogroup have already decided on their choice(s) before taking them to the Council.

The European Parliament is only consulted, it neither chooses nor approves.

Handy graphic here:
Appointment of the ECB Executive Board - Consilium

No matter how you spin it; it's still in effect the EU - Eurogroup being the collection of EU states in the euro currency collective.

[scooterscot]

Bit weird I could be exercising my democratic right voting in the European elections whilst me indigenous quitlings will be left without a voice despite the outcome of those elections having a considerable impact on them.

[meridian]

It's still "the EU", except it's limited to the currency union (naturally). All 19 are EU countries.

Me saying it's the EU is exactly it is, an institute of the EU handles QE. UK doesn't participate as it's not a member of the currency union.

The European Parliament chooses the executive members.

Not quite. Executive members are put forward by the Euro countries, and discussed within the Eurogroup before going to the Council to agree on a recommendation. Given that this is political, it’s likely that the Eurogroup have already decided on their choice(s) before taking them to the Council.

The European Parliament is only consulted, it neither chooses nor approves.

Handy graphic here:
Appointment of the ECB Executive Board - Consilium

[scooterscot]

Like Bitcoin ?

Exactly. I see a few posters have clocked on. Expect for the small difference being that the BoE can still keeping printing. Bitcoin, however can not. Go figure.

[shaunbhoy]

I suspect the majority of house price rises were thanks to the BoE burning printing presses and ultra low interest rates.

Thank you for contacting CUK with your puerile ramblings. All of our posters who give a toss are busy at the moment.

Your drivel IS important to us however and your views are currently 3789th in the queue, just behind the ship's cat. Please continue to vent your nonsense, there is not enough wind and piss here at the moment.

[TheGreenBastard]

A part of the EU, but not the EU. Similarly, the U.K. is (currently) a part of the EU, but not the EU.

So you saying the ECB is “the EU” implies that the U.K. is also involved in decisions for the ECB including QE, which is not correct. It is governed by an Executive Board plus the governors of the central banks of the 19 Euro area countries, not “the EU”.




Base it on any exchange rates that you like, as long as both the Euro and GDP conversion are consistently applied it shouldn’t matter significantly. What you’ll probably find is that there are fluctuations in percentages depending on whether you take exchange rates at the 2014 high of 1.7 or the 2017 low of 1.2 (cable) or anywhere in between.

It's still "the EU", except it's limited to the currency union (naturally). All 19 are EU countries.

Me saying it's the EU is exactly it is, an institute of the EU handles QE. UK doesn't participate as it's not a member of the currency union.

The European Parliament chooses the executive members.

[meridian]

You do realise the ECB is an institute of the EU (Institutions of the European Union - Wikipedia), as much a part of the EU as the European Parliament.

A part of the EU, but not the EU. Similarly, the U.K. is (currently) a part of the EU, but not the EU.

So you saying the ECB is “the EU” implies that the U.K. is also involved in decisions for the ECB including QE, which is not correct. It is governed by an Executive Board plus the governors of the central banks of the 19 Euro area countries, not “the EU”.

Also note your $0.570tn is based current USD/GBP exchange rates.

Base it on any exchange rates that you like, as long as both the Euro and GDP conversion are consistently applied it shouldn’t matter significantly. What you’ll probably find is that there are fluctuations in percentages depending on whether you take exchange rates at the 2014 high of 1.7 or the 2017 low of 1.2 (cable) or anywhere in between.

[TheGreenBastard]

Just because they are European countries, does not make it the EU. It’s not disingenuous, it’s accuracy.

Speaking of accuracy, you might want to redo your calcs with the correct UK amount of £435bn as per the BoE:

Page not found | 404 Error | Bank of England

And then translate both the ECB and BOE QE amounts to USD so that the calculations are working from the same basis.

So

UK : .570 / 2.6 = 21.9%

ECB: 2.92 / 13 = 22.4%

Assuming GDP is the correct measure to compare against.

Against currency in circulation (given that QE is used when printing new banknotes isn’t an option) then:
UK: 435 / 70bn = 6.2 times
ECB: 2.6t / 1.2t = 2.3 times

So depending on what measure you use to compare QE to, the ECB could be slightly more, or the UK could be.

Either way, it seems to me to be an exaggeration to say the “the EU” is the “worst offender”, when other comparisons may show differently.

You do realise the ECB is an institute of the EU (Institutions of the European Union - Wikipedia), as much a part of the EU as the European Parliament.

Also note your $0.570tn is based current USD/GBP exchange rates.

[northernladuk]

Imagine creating money out of thin air just by pressing a button.

Like Bitcoin ?

[meridian]

Nationwide Building Society House Price Index March 2019

That's disingenuous given the ECB is the central bank of the 19 European Union countries which have adopted the euro.

Quick back-of-the-envelope calculation of QE as % of GDP:

UK: 0.375 / $2.622tn = 14%

ECB: 2.81 / $13.0tn = 22%

Just because they are European countries, does not make it the EU. It’s not disingenuous, it’s accuracy.

Speaking of accuracy, you might want to redo your calcs with the correct UK amount of £435bn as per the BoE:

Page not found | 404 Error | Bank of England

And then translate both the ECB and BOE QE amounts to USD so that the calculations are working from the same basis.

So

UK : .570 / 2.6 = 21.9%

ECB: 2.92 / 13 = 22.4%

Assuming GDP is the correct measure to compare against.

Against currency in circulation (given that QE is used when printing new banknotes isn’t an option) then:
UK: 435 / 70bn = 6.2 times
ECB: 2.6t / 1.2t = 2.3 times

So depending on what measure you use to compare QE to, the ECB could be slightly more, or the UK could be.

Either way, it seems to me to be an exaggeration to say the “the EU” is the “worst offender”, when other comparisons may show differently.

[TheGreenBastard]

For a start, it’s the ECB, not the EU.

Given the quote from the article below, could you quantify your subjective description of “the worst offender”? What was the total QE arranged by the BoE, compared to population and money in circulation?

That's disingenuous given the ECB is the central bank of the 19 European Union countries which have adopted the euro.

Quick back-of-the-envelope calculation of QE as % of GDP:

UK: 0.375 / $2.622tn = 14%

ECB: 2.81 / $13.0tn = 22%

[meridian]

ECB ends €2.5tn eurozone QE stimulus programme - BBC News

Imagine that, the EU the worst offenders and it's speculated it mostly serves the wealthiest.

For a start, it’s the ECB, not the EU.

Given the quote from the article below, could you quantify your subjective description of “the worst offender”? What was the total QE arranged by the BoE, compared to population and money in circulation?

The ECB began its asset purchase programme in 2015, years after the UK and US took similar action to shore up their economies.

[TheGreenBastard]

I suspect the majority of house price rises were thanks to the BoE burning printing presses and ultra low interest rates.

Imagine creating money out of thin air just by pressing a button.

ECB ends €2.5tn eurozone QE stimulus programme - BBC News

Imagine that, the EU the worst offenders and it's speculated it mostly serves the wealthiest.

[Whorty]

Imagine creating money out of thin air just by pressing a button.

Isn't that what us contractors do daily?