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Knee Jerk Responses To BOE "Aggressive" QE Expansion

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Thu, 10/06/2011 - 07:31 | 1744681 tocointhephrase
tocointhephrase's picture

First Bitchez

Thu, 10/06/2011 - 07:57 | 1744734 Harlequin001
Harlequin001's picture

and yet they tell us it's for our benefit and they act like it's a good thing. Stop it you arseholes, you are ruining the country!


"It's a good injection of capital....' It's not capital if it is merely printed money. It is stealing from every English citizen.

Thu, 10/06/2011 - 08:31 | 1744824 jekyll island
jekyll island's picture

Well, based on the US results this should probably create about 750 jobs, so it's got to be good, right? 



Thu, 10/06/2011 - 13:32 | 1746467 Harlequin001
Harlequin001's picture

At least one, to drive us all down to the unemployment office on the bus when they're done...

Thu, 10/06/2011 - 14:23 | 1746698 BigJim
BigJim's picture

It's exactly this that convinces me we're in for an inflationary or even hyper-inflationary future, at least in terms of stuff not bought on credit.

This is just the beginning of the endless printing we'll see throughout the West until the debt has been diminished as a proportion of GDP.

Thu, 10/06/2011 - 09:30 | 1745081 tocointhephrase
tocointhephrase's picture

-17 Second Bitchez?

Thu, 10/06/2011 - 10:05 | 1745284 covert
covert's picture

no thought, it's everywhere



Thu, 10/06/2011 - 07:32 | 1744684 TradingJoe
TradingJoe's picture

It tells me for sure they are in deep shitto and in my book its a net negative!!! Short term shot in the arm! But i'll take it!

Thu, 10/06/2011 - 08:57 | 1744924 Sancho Ponzi
Sancho Ponzi's picture

Exchanging bonds of (x) duration for bonds of zero duration does NOTHING to stimulate an economy. There is no stimulus effect that results from an asset swap of equal value. These central bankers have no clue what they are doing and should be immediately sacked.

Thu, 10/06/2011 - 07:32 | 1744686 Racer
Racer's picture

They cut pensioners winter fuel allowance by 25% that pays for fuel that has gone up 30 or more %

Yeah more QE helps the economy of rich banksters only

Thu, 10/06/2011 - 07:41 | 1744707 earnulf
earnulf's picture

Please Sir, May I have another lump of coal for the furnace?

Thu, 10/06/2011 - 08:00 | 1744745 Harlequin001
Harlequin001's picture

You certainly can sir, providing you can afford to buy it.

If not, you can sod off!

Thu, 10/06/2011 - 07:33 | 1744690 ZeeGerman
ZeeGerman's picture

Printing will not save your sorry fat asses! it will just give you enough to fuel the rolls one last time...

Thu, 10/06/2011 - 08:34 | 1744836 jekyll island
jekyll island's picture

The credit deflation hurricane is just offshore and about to make landfall.  QE is the only weapon they have, so of course they are going to use it.  BOE and Gov't more interested in their self preservation than doing what is best for the country.  

Thu, 10/06/2011 - 07:33 | 1744692 Tense INDIAN
Tense INDIAN's picture

one of the early fake revolution to be hitting ur country ...beware...



Thu, 10/06/2011 - 07:35 | 1744694 PaperBear
PaperBear's picture

"capital" ?

No, debt.

Thu, 10/06/2011 - 07:36 | 1744695 JR
JR's picture

The Fed Twists, the Market Shouts by Ron Paul | October 6, 2011

Last week the Federal Reserve began the second incarnation of "Operation Twist", an attempt to drive down interest rates by purchasing long-term Treasury debt and selling short-term debt. This is just the latest instance of the central bank desperately flailing around doing something merely for the sake of doing something. Fed officials still do not understand – or admit – that the Fed itself caused the financial crisis by driving interest rates too low and relentlessly expanding the money supply. Thus, this latest action will just exacerbate the problem.

Markets, however, understand that the Fed has failed and has no clue what it is doing. This is why markets went into a tailspin after the Fed's new strategy was announced. Stock, bonds, and commodities dropped in price while the financial press wondered whether this worldwide sell-off meant that the entire system was collapsing. Not since 2008 had there been such a dramatic drop across so many different sectors of the market.

Because of continued rising inflation and the Federal Reserve's suppression of interest rates, investing in traditional safe havens such as savings accounts, mutual funds, and Treasury bonds has become unprofitable. Lots of money is moving through the system seeking a return on investments or at least some measure of safety, as increasingly desperate investors move their funds around in search of long-term profits and stability. Until the Fed stops its monetary intervention and allows interest rates to be set by the free market, investors will move their money in a volatile manner. They will invest in commodities and stocks while prices swing upwards, but will flee to bonds and cash at the first sign of a downturn

The uncertainty caused by the Fed does help some people – professional traders on Wall Street for example. Increased volatility and huge price swings mean more opportunities for profit, as sophisticated electronic trading programs can buy and sell huge positions within a fraction of a second of a major market movement. But small businessmen are misled by the artificially low interest rates into making unwise investments, and those whose jobs vanish when the Federal Reserve's latest bubble pops suffer. Without the knowledge or ability to move with the markets or diversify overseas, average Americans see their savings stagnate or depreciate – along with their hopes and dreams for a better tomorrow.

The only way to return to a sound economy is for the Federal Reserve to cease and desist its monetary manipulation and allow interest rates to be determined by markets, just as the price of goods, services, and labor should be determined by markets. Everything the Fed is doing by pumping money into the economy benefits only the insolvent, too-big-to-fail banks. Low interest rates encourage consumers to take on more debt, meaning more profits for the banks issuing those loans. Purchasing mortgage-backed securities, as the Fed has done, keeps housing prices inflated, helping the banks who have non-performing mortgages on their books. However, it hurts consumers who continue to be priced out of the housing market. In order to maintain a decent standard of living for the American people and to restore the vibrancy of the U.S. economy, it is time to end the Fed.


Thu, 10/06/2011 - 08:56 | 1744922 LongSoupLine
LongSoupLine's picture

Ron Paul is off on 1 point.  The Fed knows exactly what it's doing, and does have a "clue".  However, their clue and direction is NOT in the best interest of American taxpaying middle class, employment, or the strength and longevity of the US Dollar.

End the Fed, Arrest Bernanke, his "board", Geithner, and all domino effect members of Congress, Justice and "Regulatory" agencies associated with the oversight as well as protection of America.  Following arrest, Charge with Treasonous acts against the American people and America's sovereign security, and/or willful negligence of duty resulting in safety and security endangerment of America and it's citizens.

 PRESIDENT WOODROW WILSON: "A great industrial Nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the Nation and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the world - no longer a Government of free opinion no longer a Government by conviction and vote of the majority, but a Government by the opinion and duress of small groups of dominant men". (Just before he died, Wilson is reported to have stated to friends that he had been "deceived" and that "I have betrayed my Country". He referred to the Federal Reserve Act passed during his Presidency.)

Thu, 10/06/2011 - 07:36 | 1744696 pelagivore
pelagivore's picture

Yep, more QE than expected so of course the market should be euphoric... but wait, doesn't QE mean the that systemic risks are much larger than expected? Doesn't more QE mean that monetary authorities really don't have a clue? Does QE really work? We need more Keynesians to get us out of this mess. 

Thu, 10/06/2011 - 07:37 | 1744697 Racer
Racer's picture

Petrol and diesel near all time highs, food costs soaring, heating, water and all other bills going up way above inflation. wages not going up, cuts  cuts cuts..

yeah QE ahead and kill the economy what's left of it

Thu, 10/06/2011 - 08:01 | 1744753 Harlequin001
Harlequin001's picture

Deflation my friend is a terrible thing, if only one could find it...

Thu, 10/06/2011 - 07:37 | 1744698 chump666
chump666's picture

great job, BOE!  you just sent a wave of oil inflation back into Europe.  Now we look forward to the protests/riots going into winter.

asia is gonna love this...stagflation crash in realtime

Thu, 10/06/2011 - 07:38 | 1744700 SpaDe
SpaDe's picture

Short term fix for a long term problem seems to be the running modus operandi.

Thu, 10/06/2011 - 07:39 | 1744701 SpaDe
SpaDe's picture

Dbl post..............

Thu, 10/06/2011 - 07:40 | 1744706 msmith
msmith's picture

The USD is setting up for weakness ahead.  A look at the USD Index and the EURUSD.  http://bit.ly/pcrsPQ

Thu, 10/06/2011 - 07:42 | 1744710 chump666
chump666's picture

also they (BOE) just KO'ed UK bonds and GBP, nice work.  UK is heading towards a fiscal trainwreak.

Thu, 10/06/2011 - 07:44 | 1744712 Debtless
Debtless's picture

Since the US gdp is 7x more than England - this latest QE is over a trillion $ relatively. 

Thu, 10/06/2011 - 08:04 | 1744756 Harlequin001
Harlequin001's picture

Give it 12 months it will be a trillion, 'literally'...

Thu, 10/06/2011 - 07:50 | 1744722 dcb
dcb's picture

well, you know these central bankers. if first something doesn't work keep doing it again and again instead of admitting maybe there is something wrong with your theories. of course britain has high inflation above what the central banks is supposed to allow. But hey, that never stopped them when it cam to keeping their banker owners happy. I am starting to realize this is only going to ed when the public starts on a massive campaign to go after these people as targets of the economic warfare they are engaging in against us civilians.


These people are legit targets of economic warfare 

Thu, 10/06/2011 - 07:50 | 1744724 razorthin
razorthin's picture

It tells me it is time to add to my AGQ

Thu, 10/06/2011 - 07:53 | 1744730 EL INDIO
EL INDIO's picture

High inflation, Austerity and more QE !

People are getting fucked from all orifices.

Thu, 10/06/2011 - 08:00 | 1744747 Global Hunter
Global Hunter's picture

"It takes away quite lot of risk. This is positive for the market."


What Chris doesn't mention is whether the positive market moves will keep pace with the rate of decline of the Pound, I assume he hasn't contemplated that yet.

Thu, 10/06/2011 - 08:07 | 1744765 Harlequin001
Harlequin001's picture

Who gives a shit; I've got gold.


Thu, 10/06/2011 - 08:01 | 1744754 yabs
yabs's picture

this iws finannacial terrorism

inflation is already 5 pewrcent in uk and now the pound is being butchered

This is a cpital offencer IMHO

only another bailout foir banketrs

I cannot say hoiwangry this makes me

If you read thias KINg you should have your throat slit

Thu, 10/06/2011 - 08:15 | 1744782 Catequil
Catequil's picture

Expect riots in London soon.

Thu, 10/06/2011 - 08:21 | 1744794 MorningStar
MorningStar's picture

I am becoming confused about Eu.  I read the banks are trying to bailout the government and then I read, in another article, that the government is trying to bailout the banks (and Greece).  This mush of confusion can only add to the fear of the world markets.  Great article & well researched.  Thanks again.

Thu, 10/06/2011 - 08:22 | 1744797 Jimmy_86
Jimmy_86's picture

Remember though folks, this is just an "asset swap"!! Nothing to see here...move along now, there's a good chap...

Thu, 10/06/2011 - 08:39 | 1744852 Enkidu78
Enkidu78's picture

Its funny we pay over £75 to fill our cars up with fuel, shopping for food is so so expensive everyone has made cut backs...   Not we got 75Bn of pure inflation injected straight into what seems like our housing bubble? 

Thu, 10/06/2011 - 08:42 | 1744866 FunkyOldGeezer
FunkyOldGeezer's picture

The UK already had its TWIST operation, so this gives a nice look into what future US policy might well be.

Erm... 75 Bilion X 7 is 525 Billion, NOT 1 Trillion, so maybe another $1.5 Trillion in US QE3 when it comes?

Good news for UK metal holders, risk is now more OFF than ON. GBP to 1.20s again or even Dollar parity in the short term, unless US QE3 is announced earlier? Either way, metals will be bought again, this time with commercials likely to take long side too.

Who knows?????


Thu, 10/06/2011 - 09:03 | 1744958 snowball777
snowball777's picture

Iain Macleod must be spinning at high RPM as the country that coined the term 'stagflation' is steering straight into it.

Full speed ahead!

The conservative party in the UK will pay dearly for this stupidity in short order.

Thu, 10/06/2011 - 09:17 | 1745028 FunkyOldGeezer
FunkyOldGeezer's picture

What's the use of having an 'independant' Bank Of England if government policy forces it to make decisions it might otherwise have had far less interest in taking?

A fool's paradise, but marginally better than when the bank was fully in the politicians claws.

The stagflation we've had, for at least the past 15 years, continues.

Wed, 10/12/2011 - 10:21 | 1765546 karmete
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