Thursday, May 07, 2009

Bank of England pledges to pump another £50bn into the economy

The Monopoly game Banker that controls the game board in the UK economy, the Bank of England, will be printing up another £50 billion to buy UK government bonds with, on top of the £75 billion it has already printed up from thin air.

Expect a lot more of this counterfeiting nonsense in the next year, before Gordon Brown's red socialist government finally crumbles, and possibly for many more years after that as the incoming blue socialist government struggles to cope with Brown's enormous legacy of government spending gone mad.

Assuming a fractional reserve ratio of 10%, £125 billion will eventually turn into £1.25 trillion pounds, from out of thin air, or approximately a full year's GDP.

Isn't life grand.

Get out of the Pound. Do it now.

6 comments:

denverthen said...

As I'm sure you know, Anglo, according to the Spectator there are indications and suspicions that this money is being used for precisely the thing that ensured Weimar's woes in 1923(?): paying down govt. debt - effectively funding departmental spending by printing money. There are also signs, Fraser Nelson claimed, that the situation could already be heading out of control.

Help!

Jack Maturin said...

It headed out of control the moment Brown stepped in to 'save' Northern Rock.

The rest has been a slow-motion train wreck.

Get your assets, if you have any left, out of the UK stock market and out of the pound.

The more of us do this, the quicker they will have to stop this madness. Just 10% of people putting 10% of their assets into gold should be enough to halt them in their tracks.

Otherwise, they will suck up all the wealth you have in pounds, and excrete it into the public spending monster, via the Zimbabwean magic of printing money.

Tom H said...

I see that your all-time favourite, Edmund Conway is propogandizing for QE again.

According to Mr Conway, "There are v good economic reasons for doing what it has done and increasing the amount spent on QE. Aside from anything else, we have not yet seen convincing signs that it is working."

I imagine if it were "working", Mr Conway would also consider that a v good reason for expanding QE too.

http://blogs.telegraph.co.uk/edmund_conway/blog/2009/05/07/the_banks_money_printing_blizzard_continues

Jack Maturin said...

I don't know why they don't just print a million quid for everyone in the UK, and post it through everyone's letter box.

Then we'd all be millionaires and the credit crunch would be completely over.

Anonymous said...

What a bloody good idea, restrict it to once per family and it would only cost £30,000,000,000,000: a snip.

Jack Maturin said...

:-)