News Does this mean more money is to be printed?

[cHodAX]

Just read this on the BBC...

BBC NEWS | Business | UK interest rates to fall further

Am I reading this right? £150 billion in new notes or available through government securities to be poured into the economy? Surely that equals devalution of the pound right?

 

[kirennia]

And here comes the euro... seriously, that's where this whole thing has been pointing from the beginning, the only problem needed to be overcome was persuading the people it's what they want. People can say tin-foil hat all they want, it isn't going to change where this is leading; it wont be long before its suggested as a cure for the falling economy but sadly I think it's going to get worse before it gets better.

 

[Zenith.UK]

No matter how many times you slice up the cake, you still have the same amount of cake that you started with. All you get is less cake each.

Printing money is a bad sign as all it does is start cranking up inflation.
Germany after WW1.
Zimbabwe today.
UK next?

 

[Aoami]

Decoinage is hardly a new phenomenon, but hasn't really be practiced in a modern economy. If we end up with sky high inflation for a few months but it sorts out all this nonsense in the end is it really a bad thing?

 

[chipper]

kirennia has hit the nail on the head ive been saying exactly the same thing since this all started i give it another 6 months before its suggested as a solution that we switch currencies to the euro cos frankly labour will never get a better opportunity to do so. printing money is a sign of things going really tits up

 

[rynnor]

We would never join the euro during such circumstances because its too unstable and theres no way the governments stated conditions for joining the euro can be met.

Tbh many of the eurozone countries are heading into terrible problems too so its not neccesarily going to save us in the longer term - the markets are slowly beginning to realise that countries like germany that appeared strong are actually incredibly dependant on continuous high demand for their manufactured output.

I think the print money mentality is pure panic and worthless as a strategy - its probably time to give up on these kinds of attempts and spend our efforts more usefully on freeing up credit for companies in the uk so that the viable ones dont collapse.

 

[Milkshake]

I've really no knowledge of the economic stuff, but as for using the Euro - I've really no problem with it.

Might mean that our Scottish 20 Euro notes are valid in England

 

[dysfunction]

I think the print money mentality is pure panic and worthless as a strategy - its probably time to give up on these kinds of attempts and spend our efforts more usefully on freeing up credit for companies in the uk so that the viable ones dont collapse.

Thats exactly what they are trying to do by "printing" more money!
They are in effect putting more money into the economy so there is more of it for the banks to make use of...

 

[MYstIC G]

We would never join the euro during such circumstances because its too unstable and theres no way the governments stated conditions for joining the euro can be met.

Yeah, because it's not like a government to change the conditions of anything to suit themselves...

If anyone so much as mentions the Euro, Brown will have strung himself up politically for good. I mean he has already broken his own peoples Royal Bank ffs.

 

[rynnor]

Thats exactly what they are trying to do by "printing" more money!
They are in effect putting more money into the economy so there is more of it for the banks to make use of...

They are just buying up debt - theres an arguement that they are seeking to devalue the pound to stimulate exports but its dangerous as it effects their debts.

 

[Scouse]

What they are doing is stealing from the pockets of everybody in the UK by devaluing what they have.

Quantitative easing is tantamount to theft really. But it's OK. Our elite masters don't give two shits about wage slaves.

 

[Furr]

Put what sterling you have left into Dollars, Euros or Gold!

 

[rynnor]

Put what sterling you have left into Dollars, Euros or Gold!

Dollars - not the other 2

 

[Chilly]

And here comes the euro... seriously, that's where this whole thing has been pointing from the beginning, the only problem needed to be overcome was persuading the people it's what they want. People can say tin-foil hat all they want, it isn't going to change where this is leading; it wont be long before its suggested as a cure for the falling economy but sadly I think it's going to get worse before it gets better.

What a load of shite. Have you seen how FUCKED all the euro states are? They have no control over their currency, it's up the germans effectively. Half of the new EU states are absolutely fucked purely because they are in the euro and have virutally no control.

 

[Ch3tan]

We are not going in to the Euro because of this. The euro country's are just as fucked if not more than we are.

If the Euro was stable, and was doing well, then I would agree. But it is not.

 

[Bahumat]

if this gets any worse i'm going to have to consider becoming a nigerian scammer!

 

[Wij]

I think Gordon's already been taking lessons from the 419ers tbh with this funny-money policy :/

 

[Furr]

 

[Vae]

Judging by the exchange rate the market must have built this expectation into the rate because there's been no real change all day. Given the overall state and size of the economy I don't expect £75bn to have a huge effect on the exchange rate from where it is.

 

[mr.Blacky]

What a load of shite. Have you seen how FUCKED all the euro states are? They have no control over their currency, it's up the germans effectively. Half of the new EU states are absolutely fucked purely because they are in the euro and have virutally no control.

sorry but this is utter nonsense.

first of all the "new" EU states do not have the Euro.
The latest Euro countries are actually still growing, though on a much lower rate then the last 2 years.

The only Nation to do worse then the UK atm is Ireland, and they are to blame for the state of their economy not the euro.

Most EU countries are expected to report a growth in 2010.

 

[inactionman]

Tell that to the PIIGS (Portugal, Ireland, Italy, Greece and Spain) in the euro-zone. All their economies are fecked and are looking at france/germany to bail them out. Austria may not be far behind due to the prospective Eastern European defaults.

 

[chipper]

and brown will use spin as usual to say that joining the euro would help stabilise not only our own economy but that of the european union. if the pound sinks below a 1:1 exchange rate AND we have bought up all this debt we will be forced to go into the EURO, for the simple reason we will be better off its a win win situation for a pro euro government.

technically no money will be printed ie extra bank notes

 

[Embattle]

The issues at hand and the reason they came about have little to do with currency.

 

[SilverHood]

I don't think it's wrong to print money in this scenario.

The economy was propped up on balance sheets that were artificially high. A lot of that value has now been wiped out. The money hasn't gone somewhere, it's been written off, as it never existed. However, there was debt based on that money, and that still exists. It's a balancing act, they introduce some more money and hopefully ease the shortage of money, but as soon as things start to stabilize, they need to start removing money from the economy again. They also need to not continue to print money as a solution to fiscal problems.

What wouldn't surprise me, is that if they kept on printing money in secret.