Got change for a £1million pound note......

  Grey Goo 09:21 05 Mar 09
Locked

It seems that the printing of about £100 billion is to go ahead, the so called "Quantative Easing"
It seems rather a large sum.

  newman35 09:58 05 Mar 09

"It seems that the printing of about...".

Not printing money, it seems.

" Quantitative easing

The Bank is expected to try and boost the money supply by a new measure - so far untried in the UK - called quantitative easing.

It is sometimes referred to as printing money, but it will not expand the supply of money by making new banknotes. "

  JYPX 10:04 05 Mar 09

As a saver I cannot stop myself from feeling nervous about this step. For some reason I cannot shake off an image from my distant memory of PM Harold Wilson slipping his hand into his pocket....

  Grey Goo 10:36 05 Mar 09

You can give it a fancy name and not actually print banknotes but in effect new money is flooding the market. I hope the BoE can keep a tight control on inflation that's all.

  johndrew 11:37 05 Mar 09

I sincerely hope this group of bankers know what they are doing. Both Germany and Zimbabwe did this and ended up with hyper-inflation.

  wee eddie 11:39 05 Mar 09

you beat me to it

  GANDALF <|:-)> 11:51 05 Mar 09

Could someone explain to me, for I must be truly thick, how diluting something can strengthen it?

These are the illogical actions of a very desperate Government who are playing it by ear. What many people seem to be unaware of is that our economy, over the last 12-15 years, has been based on consumerism fuelled by high levels of debt and £gazillions being lent in an almost cavalier, unprofessional and criminal way by the banks who have constantly lied about their indebtedness and have made some truly awful(for us) business decisions. Reverting back to this will just make matters much worse, if that is possible. The Government clearly want this type of economy to re-appear with all it's inherent problems for the beleaguered tax payers.

Straws+drowning+clutching is a phrase that worryingly springs to mind. If anyone doubts that we are floundering in desperate times, this should make their minds up unless they have already checked their savings accounts.

G

  Quickbeam 12:04 05 Mar 09

Prepare now for hyper inflation, you may need one of these if printing money has the same effect as previous instances click here

  GANDALF <|:-)> 12:20 05 Mar 09

Printing money worked remarkably well for Germany after WW1. Looks like 'learning from history' does not really work.

G

  newman35 12:45 05 Mar 09

This latest tactic may or may not work, but as we are where we are, what other alternatives are there?

  Grey Goo 13:06 05 Mar 09

The idea is to raise inflation to offset the deflationary trend going on, it all hinges on getting the balance right.

This thread is now locked and can not be replied to.

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