Chart of the Day: how much QE can Merv get away with?

Ah, of course, the economists all clearly saw the financial crisis coming and gave us all good warning! Good reason to believe them this time? I doubt it.

The only way out of this problem is to try and increase NOMINAL GDP by printing money to create a little inflation to prevent it becoming obvious that REAL GDP is falling. Keeping interest rates below the engineered rate of inflation then helps depreciate the real value of the debts away. All part of the smoke and mirrors game that our trusted economists and their government use to confuse the public.

“How much more money can the Bank of England churn out while keeping inflation under control?”

Firstly money it isn’t, churn out is about right, like butter it will just melt away just like the pound. As for inflation being under control that is pure fantasyland.

All thanks to Sir Merv and his pathetic cronies, who really do live in a fantasy world.

Churn it out they will! The USA, Japan, and Europe are all running the electronic presses so the B of E will have lots of cover with no fear of a Sterling Crisis. Government fiat is going to be totally discredited by the time they have all finished printing. Gold and Silver are the only honest monies.

Fantasy world is absolutely correct. The trouble is that the rest of us who do not "earn" in excess of £300,000 per year will have to deal with the reality of the mess they are making.

I wouldn’t worry about it Mary, just get a few wheelbarrows and you should soon be selling them for billions.

This unfortunately will only get you an extra loaf of bread, providing you are faster enough with your wheelbarrow.

When I ran a successful ad agency in the 70's, I used to by a new 911 Porsche every year. The first one was under £7k and the third one was around £8k.

And that, of course, was when there was no quantitive "easing. Now, they start at over £70k. Another ten years of this and they will probably cost a quarter of a million! Needless to say, I can't afford such a car today.

Jeff,

Yes, the fact that everything cost 10 times the amount it did in the 70's is one of the surest bits of evidence that printing money causes inflation. If fact the government/central-bank/BOE printing money is the only cause of long term inflation.

Decimalisation was another good wheeze..prices doubled over night. This is of course part of the master plan..we are just hamsters caught in a wheel running faster and faster trying to get...nowhere!

Have any of you seen "The American Dream" a cartoon film on You Tube? It outlines the vast deception very well!

Debt slavery in the UK lives! After the property debt supercycle, more and more are stepping into the trap but this time it is students borrowing to get valueless degrees. The difference between the 70's and now is that there were some pretty good jobs that paid well enough to pay back the HP on fast car.

All governments like debt and inflation because they can tax it. They cant tax deflation and still balance their books. In the 19th Century there were periodic bouts of deflation but people gradually were becoming better off as they moved away from cultivating the land. Deflation in the price of goods was fantastic news - increased production at lower prices was possible as a result of genuine rising productivity. People generally benefited from deflation. Today it is an evil in politicians eyes only because governments are hooked on borrowing and spending like drunken sailors.

Since WW1 we have lurched from one bout of inflation to the next, all a result of the various politicians that have been elected.

Come the revolution, King, Osborne, Brown, Balls et al will lose their pensions and be guests of HM for more than a few years because of their frauds and counterfeiting.

Actually, it's pretty normal practice for the BOE to print money. It's just they are having a bit of an extra splurge at the moment. They just don't like to let the general public (or the Chinese) know that this is their game. Sell your pounds!

Sure, sell your pounds...and buy what exactly ???

I think the answer is obvious.

Buy the things that go up with inflation.

Rare postage stamps rose by up to 700% in the 70's, according to Stanley Gibbons.