Quantitative easing was supposed to reduce interest rates. As far as long term government yields were concerned, the Bank of England's controversial policy worked for about a week. Thereafter, rates began to creep upwards. Yesterday, yields were almost at the same level they were before the BoE began to print money.
The policy is beginning to look like a failure.
What a surprise!
ReplyDelete"Yesterday, yields were almost at the same level they were before the BoE began to print money."
ReplyDeleteWell it's obvious really. We need to print more money, after all, it is expensive business saving the World.
Brown needs to save himself. His government is imploding, and there might be a coup this week end.
ReplyDelete"there might be a coup this week end."
ReplyDeleteHas it occurred to you to wonder why Blair and now Brown have kept the British military busy on overseas adventures for the last twelve years?
or it might be a unprecedented opportunity to buy gilts.... govt selling (=issuing gilts) at same price than b4 while we have QE + deflation at the same time...
ReplyDeletei think its rather a tremendous *BUY* opportunity at least for the next 6months
Anon at 01:27, what deflation is that? All the real indicators of inflation are well into the positive territory but i guess like General Melchett said to Captain Blackadder "If all else fails a sheer bloody minded refusal to stare facts in the face will see us through". Wonder if it will work as well for GB as it did on the Somme?
ReplyDeleteThis exchange shows the silliness of anonymous blogging.Do any of these comments warrant anonymity?
ReplyDeleteI suppose the one about the coup might: on the grounds that the sender was too embarrassed to put his/her name to something so silly.
OK, DBC. I take your point.
ReplyDeleteThe only force in the land (well, out of it actually) capable of a coup happens to be the most fervently patriotic whose allegience is sworn to The Queen.
They haven't had respite from war since Blair took office ! Coincidence as he went about the abolition of Britain ?
Of course another thing about anonymity is that you don't put your name to bad spelling .And
ReplyDeletedon't reveal that you're at it in the firm's time.
This exchange shows the silliness of anonymous blogging.Do any of these comments warrant anonymity?
ReplyDeleteI suppose the one about the coup might: on the grounds that the sender was too embarrassed to put his/her name to something so silly.
Either the content has value or it doesn't. Attaching a name (branding?) provides no value except to the lazy.
DBC
ReplyDeleteAnother thing about anonymity is altruism. Producing a cracking comment without ever taking credit for it.