SunnySideUp

...... which devalues every single pound in your wallet!!



The recession is all but over ..... after not being half as bad as feared ..... we should allow it time to grow under it's own steam!

http://news.bbc.co.uk/1/hi/business/8037685.stm

Coffin Dodger

You voted for this bunch of idiots that put the BoE in charge of such matters. It's pretty much on the governments say so that they are doing this anyway

unclebuck

What - Do Nothing you mean??

SunnySideUp

I'm not saying that Labour are doing this, they are NOT - it is the BoE I am annoyed at.

They are, after all, independant ..... a universally accepted piece of Governorship by Labour

We are coming out of this downturn due, 100%, to Labours excellent and correct response to it (copied the world over, I would add!).

Coffin Dodger

But from the very news item you have linked:

So in essence the Treasury (i.e. HM Government) has given them permission to print £150bn worth of extra cash if they wanted to.

I'm confused as to who you are saying is at fault here, the BoE or the government. Seems to me that the BoE are only following orders and have in fact under cut what the government offered making the pound slightly stronger than if they had followed what the treasury suggested to the letter

mrtheedge2u2

Come on, Coffiin Dodger. Dont make Pete run off and never post on this thread again

You know that when common sense and truth comes into his threads he panics and runs

ronjeramy

iTrader: (1)

So what your saying Pete is, if Labour hadn't made them independant, maybe we wouldn't have got into the mess in the first place?

Ant

Labour make the decsions. This Is the reason I don't vote there will be never a party does anything good or stick to there policies.

And SSU do you spend your day scouring BBC news for a story to put in nsr. I can't work out wheter it's to get your post count up or to cause needless debates.believe it or not we can all access BBC news

Petem95

The recession is potentially not even half way through - look at how many false dawns there were in the great depression!...

Devildog

Pete

I,d say it,s been/is pretty bad tbh.............

Terminator X

iTrader: (7)

I still don't understand this printing more money business ... how does it help the UK & why does it make me worse off? I still get paid the same

TX.

dpb

I think very occasionally he stops for a pissbreak

FlightMan

To be accurate, it's actually an extra £50 billion. They announced the first £75 billion a couple of months ago.

Coffin Dodger

Think its too late

mrtheedge2u2

looks that way! lol

speedking

You're paid £20000 which will buy you $20000, so anything you buy from the US costing $500 has cost you £500.

If HMG prints the same amount of UK currency as is currently in circulation, then the pound is devalued. Your £20000 (the same) now only buys you $10000, because the americans can see that each pound is only worth half as much as it was before, so now your $500 item costs you £1000.

So say we imported bread from the States, then it is now twice as expensive. You demand a big pay rise to be able to afford to eat, and so a massive hyperinflationary cycle starts, as per Zimbabwe.

As far as UK goods using UK resources are concerned, the real costs will not be affected. Therefore it helps the UK economy. But there aren't many of those left Imported goods like cars and TVs become more expensive.

dpb

I can see their cunning plan now - we all start manufacturing these goods ourselves

smokingkills

iTrader: (3)

I'm no economist, does this mean those in debt will owe less too?

stevebt

iTrader: (8)

I was under the impression it was £50bn ?? One thing people don't seem to think of is when the economy recovers and shares improve (happening now) The government who is in power will make a killing on all the loans to car companies and shares they hold in all the banks! the american goverment loaned money to the airlines after 9/11 to keep them afloat and when they recovered the american goverment made £145m profit from that help.

dpb

Lol , Well thatll pay welfare bills for a couple of days

SunnySideUp

You are quite right .... the Government do appear to be in charge of this quantative easing - I didn't actually give them credit for such a move - I guess it is needed to continue their good work in turning the country around and leading the world out of the financial problems we have experienced. Well spotted

SunnySideUp

Excellent contribution to the thread Dave ......

Terminator X

iTrader: (7)

This is the bit that loses me! Who devalues the £? Is it just the Market? If so, why not just not tell anyone that we've printed more money & they'd be none the wiser?! The general impact then is that stuff gets more expensive whilst my income remains static?

As consumers though, we'll just switch from stuff that's rising in price over to stuff that isn't won't we?

TX.

Leslie

I cannot believe that your intelligence does not allow you to really understand what is happening Pete!

They are doing what they have done since 1999, ie over borrowing in order to finance their proflgate and largely useless spending and virtually allowing the banks freedom to gamble with our cash. This made it appear that we had a bouyant economy when in actual fact it was going downhill and nothing left eventually to help us get through this depression.

The big difference now of course is the scale of the borrowing so that they can continue to **** it against the wall as they cannot resist doing, as long as they are spending someone else's money of course!

The borrowed sums are vast and much much more that ahs ever been borrowed before, and effectively means that we are using our descendant's and our own future tax money to bolster up their ridiculous spending policies for years to come.

On top of all that, having also flogged half our gold reserves for peanuts, they are now following the example of Zimbabwe and printing more money to further finance their headlong dash into unimaginable debt! "Quantitative Easing" is yet another piece of goobledegook to as ever, attempt to hide what they are really doing!

How you can possibly claim all this as a victory for sound fiscal policy is truly unbelievable Pete. As you know, unlike you, I am apolitical and will only support a party which seems to be capable of doing good for this country. I can't say if the alternatives are the definitive answer, but having seen what they have done, I am 100% sure who I don't want to continue to drag this country even further down the tubes!

Les