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LOL, England literally printing money

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No Lifer
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None of this pesky selling it to people like in the US, they are literally printing it up:

The Bank of England has taken an historic "step into the unknown" by pledging to create £150 billion of cash and pour it into Britain's stricken financial system...It pledged for the first time in its 315-year history to start effectively printing money...The Bank announced the radical step after cutting rates by half a percentage point to an all-time low of 0.5 per cent yesterday - the lowest it judges they can go without causing the entire financial system to malfunction...described the new post-interest rates world as representing "a step into the unknown"...it will pay for these assets not with a pre-raised cache of funds but by creating new money and transferring it to the investors
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This artcile makes an incredible assertion--incredible for its idiocy. Apparently 1/4 of Britons are not saving money because with interest rates so low their interest return is basically null. WTF, this is not time to be worrying about investing for that BMW, people, damn don't they realize they need to be worried about their mortgage, car payments, keeping the power on?

People of Anandtech P&N, this truly is a historic point in the global economy. This is the real fvcking deal this time, there is no way around it and no doubt of it anymore.
 
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Interesting. Canada cut its rates that low as well, but from what I can see Canada is in a pretty good position to deal with this (save the manufacturing, but manufacturing is always in trouble). Did British banks get greedy too?
 
Anyone want Zebo's survival on a budget guide PM me.... Running everyday, taking my vitamins, MSM, & glucosomine getting ready for lights out personally.
 
Originally posted by: Zebo
Anyone want Zebo's survival on a budget guide PM me.... Running everyday, taking my vitamins, MSM, & glucosomine getting ready for lights out personally.
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What do your arthritis tips have to do with England's inflation?
 
Originally posted by: Zebo
Anyone want Zebo's survival on a budget guide PM me.... Running everyday, taking my vitamins, MSM, & glucosomine getting ready for lights out personally.
Click to expand...

You should add seal or fish oil (i prefer seal oil, it's better regulated and has a higher concentration of the active ingredients) to that regimen for the same reason you take glucosamine. 😉

I'd add creatine too, preferably creatine pyruvate but that's just because it can help, doesn't neccessarily help everyone with joint problems though.

However, this is slightly of topic. 😀
 
Originally posted by: Jack Flash
Originally posted by: Zebo
Anyone want Zebo's survival on a budget guide PM me.... Running everyday, taking my vitamins, MSM, & glucosomine getting ready for lights out personally.
Click to expand...

What do your arthritis tips have to do with England's inflation?
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I elaborate on the importance of physical fitness in a TEOTWAWKI scenario in my guide which is available free of charge only here at AnandTech. Just ask....in the mean time enjoy the ride of worse news by the day & be prepared to get washed out with the tide.
 
I am in precious metals big time. Yamana (already doubled my money), Silver Wheaton, GLD calls. Looking at SWC (beaten down due to platinum exposure to industrial/auto demand)
If banks are openly and unabashedly printing money, we could see a stampede into monetary metals like gold, and maybe side bets in other commodities.
Fiat paper money is only as good as public confidence in its ability to hold its value and not getting diluted through inflation. Once you shake that confidence people don't want to hold on to money anymore. Ask anyone who lived in Russia in the 90s, or Zimbabwe, or pick your favorite printing press country.
 
Originally posted by: senseamp
I am in precious metals big time. Yamana (already doubled my money), Silver Wheaton, GLD calls. Looking at SWC (beaten down due to platinum exposure to industrial/auto demand)
If banks are openly and unabashedly printing money, we could see a stampede into monetary metals like gold, and maybe side bets in other commodities.
Fiat paper money is only as good as public confidence in its ability to hold its value and not getting diluted through inflation. Once you shake that confidence people don't want to hold on to money anymore. Ask anyone who lived in Russia in the 90s, or Zimbabwe, or pick your favorite printing press country.
Click to expand...

Be glad you're not a UK bank who's invested a LOT in the Icelandic banks.

That is what really brought this over the edge.
 
This is a move to get people to spend. If everyone kept their cash under the mattress, then the economy will never get better. However, once they begin printing money and raising inflation, everyone will want to spend the hidden cash because literally, every day you keep your money under the mattress is a day you lose a portion of the value. When UK's economy recovers, the government will then proceed to destroy the extra money it printed.
 
Originally posted by: JohnOfSheffield
Originally posted by: Zebo
Anyone want Zebo's survival on a budget guide PM me.... Running everyday, taking my vitamins, MSM, & glucosomine getting ready for lights out personally.
Click to expand...

You should add seal or fish oil (i prefer seal oil, it's better regulated and has a higher concentration of the active ingredients) to that regimen for the same reason you take glucosamine. 😉

I'd add creatine too, preferably creatine pyruvate but that's just because it can help, doesn't neccessarily help everyone with joint problems though.

However, this is slightly of topic. 😀
Click to expand...
Thanks a lot will research it.
I dont have any knee problems but and ounce of prevention is worth more than a pound of cure.


 
Originally posted by: Zebo
Originally posted by: JohnOfSheffield
Originally posted by: Zebo
Anyone want Zebo's survival on a budget guide PM me.... Running everyday, taking my vitamins, MSM, & glucosomine getting ready for lights out personally.
Click to expand...

You should add seal or fish oil (i prefer seal oil, it's better regulated and has a higher concentration of the active ingredients) to that regimen for the same reason you take glucosamine. 😉

I'd add creatine too, preferably creatine pyruvate but that's just because it can help, doesn't neccessarily help everyone with joint problems though.

However, this is slightly of topic. 😀
Click to expand...
Thanks a lot will research it.
I dont have any knee problems but and ounce of prevention is worth more than a pound of cure.
Click to expand...

No probleme, there are some good studies over at nih.gov, peer reviewed and consistant, it was the reason i started using it, it has helped my ankles a great deal and with the amount of walking involved in my line of work, i really needed that.
 
Originally posted by: senseamp
I am in precious metals big time. Yamana (already doubled my money), Silver Wheaton, GLD calls. Looking at SWC (beaten down due to platinum exposure to industrial/auto demand)
If banks are openly and unabashedly printing money, we could see a stampede into monetary metals like gold, and maybe side bets in other commodities.
Fiat paper money is only as good as public confidence in its ability to hold its value and not getting diluted through inflation. Once you shake that confidence people don't want to hold on to money anymore. Ask anyone who lived in Russia in the 90s, or Zimbabwe, or pick your favorite printing press country.
Click to expand...
You are right, but the question is the timing, isn't it? I don't know if Japan actually printed money, as that article alluded to. CLEARLY, if this is going to be a big thing, and it probably will be, there will be a devaluation, but the question is if they print enough to get hyperinflation carried away vs just keeping it basically at even (because the economy has a deflationary pressure right now).

So, what's the balance?
This is a move to get people to spend. If everyone kept their cash under the mattress, then the economy will never get better. However, once they begin printing money and raising inflation, everyone will want to spend the hidden cash because literally, every day you keep your money under the mattress is a day you lose a portion of the value. When UK's economy recovers, the government will then proceed to destroy the extra money it printed.
Click to expand...
Great optimism. I don't share it, though.
 
If they split that up equally that's £2,586.21 each. I'll take mine in used twenty pound notes and shares in cigarette companies.
 
Originally posted by: Skoorb
Originally posted by: senseamp
I am in precious metals big time. Yamana (already doubled my money), Silver Wheaton, GLD calls. Looking at SWC (beaten down due to platinum exposure to industrial/auto demand)
If banks are openly and unabashedly printing money, we could see a stampede into monetary metals like gold, and maybe side bets in other commodities.
Fiat paper money is only as good as public confidence in its ability to hold its value and not getting diluted through inflation. Once you shake that confidence people don't want to hold on to money anymore. Ask anyone who lived in Russia in the 90s, or Zimbabwe, or pick your favorite printing press country.
Click to expand...
You are right, but the question is the timing, isn't it? I don't know if Japan actually printed money, as that article alluded to. CLEARLY, if this is going to be a big thing, and it probably will be, there will be a devaluation, but the question is if they print enough to get hyperinflation carried away vs just keeping it basically at even (because the economy has a deflationary pressure right now).

So, what's the balance?
Click to expand...

Think of it this way, central banks are trying to fill a bowl with water by pouring it from the 10th story with a hose, but not to overfill it. They can't really see how much water is in the bucket from up there, there is a delay from the time they turn the spigot off and when water stops coming out of the hose, and there is water in flight too, and they have to do it fast. So if you tell them to keep pouring until they fill the bucket, most likely they are going to over do it. Of course they could luck out and time it just right, but the likelihood is not in their favor.

 
Wow...They haven't printed money for 315 years?
I consider that to be an accomplishment.

Is that the reason why the pound sterling is stronger than most currencies?
 
Originally posted by: senseamp
I am in precious metals big time. Yamana (already doubled my money), Silver Wheaton, GLD calls. Looking at SWC (beaten down due to platinum exposure to industrial/auto demand)
If banks are openly and unabashedly printing money, we could see a stampede into monetary metals like gold, and maybe side bets in other commodities.
Fiat paper money is only as good as public confidence in its ability to hold its value and not getting diluted through inflation. Once you shake that confidence people don't want to hold on to money anymore. Ask anyone who lived in Russia in the 90s, or Zimbabwe, or pick your favorite printing press country.
Click to expand...

Good hedge senseamp as inflation starts, which is predicted by current gold price, there will be no going down in value. But right now in USA CASH is where it's at because of deflation happening everywhere and assets waiting to be snapped up cheap.


Skoorb Yes Japan is going to print.
http://news.bbc.co.uk/2/hi/business/7922815.stm

They need to inflate debt away, all G8 do - you can't seriously believe we are capable of servicing these debts/bailouts.
 
There is big demand for dollars right now, driving up the price in the near term. Long term, value of dollars is a function of not just demand, but supply. There is huge demand for cash to fill holes in balance sheets, but there is also an unlimited potential supply of it. And betting on dollar is ultimately putting your faith in the hands of those who control money supply. But even more than that, in the global economy, if one country starts devaluing its currency, it puts pressure on other countries to do the same, to stay competitive in trade. So really, you are betting not just on one, but all major central banks to perfectly time and size their quantitative easing measures in coordinated fashion, without letting politics and trade get in the way.
It could happen, but I would rather be on the other side of that bet.
 
Originally posted by: Hacp
This is a move to get people to spend. If everyone kept their cash under the mattress, then the economy will never get better. However, once they begin printing money and raising inflation, everyone will want to spend the hidden cash because literally, every day you keep your money under the mattress is a day you lose a portion of the value. When UK's economy recovers, the government will then proceed to destroy the extra money it printed.
Click to expand...

that hysteria won't take place unless there's hyperinflation
 
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