QE2... why and what if it fails?

[Black Swan]

How about just stop taxing the **** out of us and maybe we will have some money to spend. A concept that's way over the head of many edumakated politicians.

Peter

Well in the UK it'll break down like this by 2020;

Tax 50%
NI 11%
Student debt 9%
Local tax 5%
Vat 20%

Bottom line insde the next decade at least 75% of what you make (if you are a high P.A.Y.E. earner) you'll never get to see and if you are on average pay it'll be 55%, but it'll feel much worse as a real percentage...

 

[robster970]

What like Aus, NZ, Sweden are suddenly poor? Fook America should be our attitude, but when you've got a Bilderberger as chancellor whose best mate is Nat Rothschild you realise that this idelogical vandalism has nothing to do with the electorate, who btw didn't give the current Condem fooktards any mandate to unleash their madness.

Democracy is over anyhow, even with the vote on student fees Clegg and Cameron are busily looking for ways to bypass parliament on the decision so no Lib dissenters can have a voice or be seen to break rank..That's not a ballot box we have, it's a canteen suggestion box for debt slaves...

It'll happen via currency devaluation dude. I agree with MR that ultimately western lifestyles will go down the pan in a rebalancing of the world economy. It all started 20 years ago when the chinese devalued there currency against the USD - that's when the process started IMO.

 

[meanreversion]

What like Aus, NZ, Sweden are suddenly poor? Fook America should be our attitude, but when you've got a Bilderberger as chancellor whose best mate is Nat Rothschild you realise that this idelogical vandalism has nothing to do with the electorate, who btw didn't give the current Condem fooktards any mandate to unleash their madness.

Democracy is over anyhow, even with the vote on student fees Clegg and Cameron are busily looking for ways to bypass parliament on the decision so no Lib dissenters can have a voice or be seen to break rank..That's not a ballot box we have, it's a canteen suggestion box for debt slaves...

The UK needs to pull out of the EU now. I genuinely believe that the reason all the mainstream parties are pro-Europe is because the politicians know it's a ballot-free gravy train to which they can retire when they lose an election.

It's really fking rich for the EU to want to change the Lisbon treaty to clamp down on overspending states, whilst simultaneously asking for a 6% increase in their own budget.

I'm not voting Tory again, as long as Wavy Davy is in charge. UKIP at the next election, unless the Tories dump Cameroon and put a genuine Euro-sceptic in charge.

 

[robster970]

Leave the country seems to be the only option. Anyway, game on for me now.

 

[meanreversion]

That's interesting - where did you find that info MR?

I used a website called "Google", it's pretty good

http://www.shareworld.co.uk/index.php/news/123/230/UK-Government-index-linked-gilts/darticles/

 

[robster970]

I used a website called "Google", it's pretty good

http://www.shareworld.co.uk/index.php/news/123/230/UK-Government-index-linked-gilts/darticles/

Cheeky b@stard - lol

 

[meanreversion]

I struggle to see how QE can ever end. If at any point the Fed announces it's going to start selling Treasuries.... my word..... shudder to think.

If inflation ramps up and they move to a tightening bias, they'll presumably hang onto all the bonds they've bought at the absolute peak of the market and then suffer huge losses.

It's going to end messily I think.

 

[scose-no-doubt]

How about just stop taxing the **** out of us and maybe we will have some money to spend. A concept that's way over the head of many edumakated politicians.

Peter

Tax reduction leads to paying down debt. Can't have that now can we? Need to perpetuate spending by making even more credit available as people refuse to accept lower standard of living -so repair banks' balance sheets hence QE.

This thread was meant to be more about markets reaction to failed(or maybe not as MG pointed out) qe1, why qe2 and what happens if qe2 has v little or muted effect.

You girls are always turning thing literary and political

lets see/discuss more numbers you fannies

 

[meanreversion]

Oh yes, something else I forgot.

Fractional reserve banking means that most of our "money" is in fact debt. New money must be created, by definition, in order to pay off interest on existing debt. Money supply MUST always go up, otherwise defaults will occur.

This thread is turning out to be decent, but more importantly, does anyone have a view on who is going to win X Factor this year?

 

[robster970]

So if a bunch of people on a bulletin board with probably a better grasp of economics than the great unwashed seem to arrive at a conclusion nomatter which way you look at it that:

a) QE won't work in the medium to long term due to inflationary pressures, currency devaluation, risk asset appreciation, etc

b) There is no political will to do anything different because the answer to the problem (wholesale writedowns of assets, personal and institutional) is so unpalatable that it is societal and political suicide

You would expect Bernanke, King, Trichet, any other central banker to know this. So they must be doing it for a reason - what is that reason? Is it better to have a go and fail rather than to take it on the chin?

Are we missing the elephant in the room?

X-Factor - Anne Widdecombe.

 

[meanreversion]

You would expect Bernanke, King, Trichet, any other central banker to know this. So they must be doing it for a reason - what is that reason? Is it better to have a go and fail rather than to take it on the chin?

Are we missing the elephant in the room?

X-Factor - Anne Widdecombe.

Anne Widdecombe is an elephant?

Bernanke is an academic, and now gets to play out his theories in real life. Let's be honest, no-one really knows where QE is going to take us. The Japs did it, and life continued for them.. their 10yr yields are below 1 pct.

Who the fck knows. Ok, off to the gym now.

 

[scose-no-doubt]

Anne Widdecombe is an elephant?

Bernanke is an academic, and now gets to play out his theories in real life. Let's be honest, no-one really knows where QE is going to take us. The Japs did it, and life continued for them.. their 10yr yields are below 1 pct.

Who the fck knows. Ok, off to the gym now.

Best answer so far IMO.

I have a question for any bond traders here.

Are they depressing and can they continually depress yields and is this the aim of the game or what?

This QE thing seems like it's striking several targets at once from what I can see but I'm not sure whether this is down to lack of comprehension.

 

[scose-no-doubt]

Also doesn anyone know why it's better to have a bash at a coordinated QE experiment rather than coordinated bond restructure?

 

[robster970]

Anne Widdecombe is an elephant?

She certainly isn't a human.

 

[Martinghoul]

What "coordinated bond restructure"?

 

[Rugby Trader]

I struggle to see how QE can ever end. If at any point the Fed announces it's going to start selling Treasuries.... my word..... shudder to think.

If inflation ramps up and they move to a tightening bias, they'll presumably hang onto all the bonds they've bought at the absolute peak of the market and then suffer huge losses.

It's going to end messily I think.

assuming the madness that is QE ends somewhere down the line, rather than selling treasuries which i will assume will do horrible things, wouldn't the sensible route be to let the bonds expire, collect and cancel the money. or am i barking up the wrong tree?

Not that they would ever do anything sensible.

 

[scose-no-doubt]

What "coordinated bond restructure"?

There hasn't been one. I'm just wondering why they couldn't do that instead of QE2. Might seem stupid to you in the industry but why now that banks have been capitalised (havent they?), can get they not get deficits under control way of a co-ordinated bond restructure rather than co-ordinated qe2

 

[wackypete2]

Leave the country seems to be the only option. Anyway, game on for me now.

Might as well come to the USA...we could use more suckers..err, taxpayers, I mean.

Peter

 

[Martinghoul]

There hasn't been one. I'm just wondering why they couldn't do that instead of QE2. Might seem stupid to you in the industry but why now that banks have been capitalised (havent they?), can get they not get deficits under control way of a co-ordinated bond restructure rather than co-ordinated qe2

But why do you think restructuring is better?

 

[robster970]

Might as well come to the USA...we could use more suckers..err, taxpayers, I mean.

Pter

Would that mean I can vote for Sarah Palin as the republican nominee for the 2012 presidential election?