Cable Tumbles As BOE Monetary Policy Committee Raises Possibility Of QE2

Tyler Durden's picture

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qussl3's picture

ECB to follow by aug.

deez nutz's picture

printing money is all that is left.  stop it and you stop the world from spinning. 

bernanke starts his machine back up in august to start buying the debt of the U.S. he has no choice.  (coinciding with the debt ceiling raise the 3rd week of July) 

MiningJunkie's picture

The Central Banks with their Cartel agenda are moving into VERY DANGEROUS territory. The next move to all-time highs in the P.M.'s is nigh...

hugovanderbubble's picture

ECB is in default

IMF too

Bank of Japan too

*Close the door before exit...which  door? Burned for fire in the new ice age

 

P.S. Federal Reserve of course has infinite ammo...of fiat backed securities...lol

breezer1's picture

the comex paper gold is losing its relevance. 

hugovanderbubble's picture

Uk needs more bailout to save Irish banks and British too( RBS, Barclays)

Barclays kaput in Spain

Quintus's picture

Deflation?  Utter Crap.  More QE is coming because there is no market for UK Government debt now that the UK Banks which have (as ZH pointed out not long ago) bought just about the entire UK Gilt issuance this year no longer need to do so to build up their reserves.

It's the same problem that The Bernank faces.  Without QE, there are no bond buyers.  No matter how he spins things in todays FOMC announcement, the net/net will be that the Fed will continue buying the majority of US debt this year, next year and in perpetuity until the whole system collapses under its own weight.

qussl3's picture

Change the RR and accept only gilts.

 

Sam Clemons's picture

Nice man.  Plus, all of the financial instrument's models rely on exponential debt ("money") growth to make a profit.  If banks run the show, which it appears they do, there will be no possibility of the boogey man deflation.

A Man without Qualities's picture

There's a genuine fear that the bond vigilantes could turn on the Gilt market.  I don't think Mervyn King is a big fan of using QE in the way Bernanke has ended up doing, i.e. allowing profligate politicians to ignore economic reality, but it makes sense to remind the market that it is an option.  

The first round of QE in the UK did nothing for growth, as those who sold Gilts ended up dumping Sterling (or rather UK plc) assets completely.

However, this is a tell, because the UK did QE before the US and they are pretty coordinated in action, so it shows there is clearly a discussion about more QE in the US.  I still argue they won't move immediately, given inflationary pressure, but they will when the time is right.

pauldia's picture

All debtor nations must devalue. No other choice, at least with the current group of leaders. The question remains, individual devaluations, or one simultaneous currency En masse debtor "switch" and devaluation? Alternative currency on horizon.  Creditor nations are now in drivers seat and meetings have been held. Protocol exists. Legislation being laid, note the Dodd-Frank provisions.  Calender most likely circled. Any guesses when? 

qussl3's picture

Why would the guys with the guns willingly submit to debt peonage?

pauldia's picture

U S Navy cannot force a bankrupt dollar to be worlds reserve. SDR"s etc already moving in to replace dollar as world reserve. Not tomorrow, America has a kabuki dance in November 2012 and some chair reshuffling. But not long after. 

trav7777's picture

got no choice...the sovereign is bankrupt.  The stay of execution brought by the North Sea Forties field is now over

PaperBear's picture

I thought I saw a report that Mr. Bernanke used the word 'stimulus' a few days ago, was this the case ?

alexwest's picture

nice .. idiots spelled out

#recovery struggles and “downside” risks to growth and inflation mount.

SO RECOVERY = GROWTH= INFLATTION..
i dont know what planet are those asshoels from? since how paying for bread/milk/gas/etc is better for economy..

alx

Sam Clemons's picture

Easy.  It makes the pretty GDP, the most worthless indicator of economic well-being of a citizen, numbers look better by having everyone pay more for everything.

AUD's picture

RAN Squawk said earlier that Gilts have been on a seven week rally.

Bond speculators 1

BoE 0

DogSlime's picture

There really is no end to the stupidity.  Kick the can down the road.  Nevermind that when the whole thing collapses, it will be much worse as a result.

We're screwed.  I have abandoned all hope.

AUD's picture

Chin up old boy, it could be worse. Jerry could be firebombing your house.

Josephine29's picture

I think that it was put well here.

The Monetary Policy Committee Minutes

 

These latest minutes just released have shown that we are further away from an interest-rate rise as the new member Ben Broadbent voted for unchanged policy. As I mull over the idea of an ex-employee of Goldman Sachs voting for no change to the current – very beneficial for Goldman Sachs- status quo I am reminded of the quote from Turkish in the film Snatch.

Who’d da thunk it?

 

http://t.co/H4Z3Mha

 

All of our official bodies seem to have suffered from instituttional capture by the banks...

 

 

Franken_Stein's picture

 

WeAreChange Confronting Zbigniew Brzeszinski:

http://www.youtube.com/watch?v=q9pDY_ny6Qo&feature=related

 

WeAreChange confronting Larry Silverstein, the owner of World Trade Center, hit on 9/11:

http://www.youtube.com/watch?v=7YWpW4Vpo6w&feature=related

 

WeAreChange confronting Ben Bernanke:

http://www.youtube.com/watch?v=4AcpznV4RGY

 

WeAreChange confronting Karl Rove:

http://www.youtube.com/watch?v=1_51XsphHi4&feature=related

 

WeAreChange confronting Michael Hayden, head of NSA:

http://www.youtube.com/watch?v=lQTW-58YHgE&feature=related

 

Pictures of the 2010 Bilderberg meeting in Sitges, Spain.

http://www.youtube.com/watch?v=IXe88S9lAEE&feature=related

http://www.youtube.com/watch?v=Q33JhOriEXM&feature=related

 

 

Movies of the Bilderberg Group meeting 2011 in St. Moritz, Switzerland.

http://www.youtube.com/watch?v=WGDW03FeZq4&feature=related

 

ivana's picture

Damn "deflation" again ha ha ha

PS

UK banks seems to be in distressssssssssssss

GlynG's picture

Hi bitchez, is now a good time to buy gold for the first time or should I wait a few weeks incase the price drops due to Greece / QE2 ending? (I'm in the UK and new to financial stuff)

Quintus's picture

Spend some time reading on this Precious Metal focused site (www.tfmetalsreport.com) before you do anything.  There are many points of view regarding the potential price movement of Gold this summer (traditional Summer doldrums vs Crisis-driven spike etc.) so it would be wise to familiarise yourself with the issues and form your own opinion.  It's also a good site to pose questions like yours - you will probably get more responses there.

 

PaperBear's picture

I see the banksters are selling paper silver again so that when Mr. Bernanke this afternoon says the words we all know he is going to say, the price of paper silver is at the low of the day.

morph's picture

More housing ponzi moves. I'd love to buy a house or apartment, but they are simply not reasonably affordable in the UK.

House prices here have to fall around 20%, or to put it another way, wages need to increase by around 25-30%

dcb's picture

they say the definition of insanity is to try the same thing over and over and expect different results. I think being insane is a requirement of being a central banker. I used to like KING, but now I can see he's just another bernanke

Lord Peter Pipsqueak's picture

It is only a matter of time,and don't forget,the Bank of England did their own version of QE BEFORE the Fed,that's how despertate they are to avoid falling house prices.Because that is what it is all about,preventing prices from falling and getting them to go back up again, so people start taking out new or bigger mortgages.The Uk is a post industrial economy with a minor league manufacturing sector that is a mere shadow of its former self,so banking profits mainly come from mortgage business.The banking and finance sector have like the proverbial cuckoo, expanded to a point that totally destabilisies the entire UK economy,consequently its survival means it is paramount to the Bank of England.Add in the rather unpalatable fact that the banks gambling debts/losses(sorry - banking liabilites) in the UK are around 450% of GDP,and there is only one policy the Bank of England is following - and that is to reflate and print money until those liabilities are wiped off the banks balance sheets,their reserves are back to normal solvency levels,and people once again start to discuss how much their house have gone up in "value" at dinner parties.

A devastating article on the failures of the Bank of England is below,but then again is anyone surprised?the Bank of England's job,like that of the Fed, is to protect the interst of banks not the people.

http://www.telegraph.co.uk/finance/comment/jeffrandall/8529749/The-Bank-of-England-is-failing-this-country.html