Gold Spikes After BOE's Posen Demands More QE, Wants To Buy Corporate Debt

All is fair in love and central bank war. Which is why we see the following headlines from England, showing just how important it is in the global game theory, which has now turned to outright war, how important it is to defect first.

  • BOE's Posen: I think further monetary easing should be undertaken in UK, subject to debate
  • BOE's Posen: If QE does not work, then time for further fiscal stimulus, corporate debt purchases
  • BOE's Posen: Additional monetary stimulus should begin in the form of addition QE gilt buying
  • BOE's Posen: Possible that QE will not be able to create sustained recovery on its own
  • BOE's Posen: Still open to argument, vote for easing at Oct. MPC meeting is not foregone conclusion
  • BOE's Posen: Sees CPI falling well below target without stimulus, 1990s Japan style scenario possible
  • BOE's Posen: Possible that QE will not be able to create sustained recovery on its own
  • BOE's Posen: Most signs point to CPI falling well below target, wage spiral seems impossible
  • BOE's Posen: Believes better BOE and more central banks did large-scale asset purchases together

Gold obviously jumps, cable drops, and central banks everywhere are battening down the hatches