RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 27/03/12

Comments

[writingsonthewall]

Check out us - we're having our own deepwater horizon spill!

http://www.scotsman.com/news/exclusion-zone-set-up-around-north-sea-oil-...

So much for this 'economically viable' oil deposits around the world - as the fields are more difficult to drill - they are more difficult to control.

Watch this story - could be as much of a political headache for the UK as it was for the US - especially as our moronic chancellor just gave tax breaks to oil companies wanting to drill in the North Sea.

You can't eat oil - but you could have eaten the (depleted) fish stocks which the oil will destroy.

Watch this story unfold - luckily however someone is already doing something about the demand side.

http://www.dailymail.co.uk/news/article-2120334/Fuel-strike-Nearly-8k-pe...

Did anyone expect anything else? - really???

This is how depressions work (or rather don't)

[Irish66]

Pain in Spain this a.m.

[EconSammie]

International readers may be interested to learn that UK stamp prices are about to shoot up. For example the price of a 2nd class postage stamp is about to go from 36 pence to 50 pence or 38%! And yet as I read in an article today the Bank of England has not even got to the real dangers of QE yet...

Comment

David Miles presses his case like the true believer that he is. The problem is simple which is that it is not working and his attempts to twist reality only end up in him misrepresenting the truth. Before this episode is over I expect one more problem to emerge and it is based on this.

The tricky task ahead for the MPC, and for the Fed and the ECB, is to know for how long to keep monetary policy at an exceptionally expansionary setting. What is the right trajectory back to a more normal setting? The challenge here is not because of any practical difficulties in unwinding asset purchases, it is the much more fundamental and timeless one of assessing the outlook for the economy and judging the appropriate monetary stance.

I have emphasised the section which is utter rubbish but my main point is that I feel that the Bank of England will be so desperate for any recovery to take place that it will fatally delay any policy tightening. So it will open us up to a more dangerous phase for inflation as letting it grow in a recovery has a very poor track record in UK economic history and it will make the losses from QE rise further as bond prices fall.

Oh what a tangled web we weave,
When first we practise to deceive!

http://www.mindfulmoney.co.uk/wp/shaun-richards/as-uk-qe-rises-above-300-billion-and-counting-david-miles-confesses-that-the-uk-taxpayer-will-get-a-large-bill/

[MiddletonRobert3]

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