They did the quantitative easing thing before and inflation went up. Now they're doing another lot of QE, which will presumably result in even more inflation and hence a reduction in ordinary people's spending power, thus cancelling out any "growth". Here we go again...
"BoE Boss: Economic Crisis 'May Be Worst Ever'
The Bank of England's governor has warned Britain could be in the grip of the "most serious financial crisis ever" and defended its decision to pump £75bn into the economy.
Sir Mervyn King said the global and UK economies had been turned on their heads in the past three months alone and added: "The world has changed."
The situation could be even worse than the Great Depression of the 1930s, he said, making it crucial do "the right thing" - which in the UK now means pumping more cash into the economy.
Sir Mervyn was speaking after the Bank's Monetary Policy Committee (MPC) voted to unleash a fresh round of quantitative easing (QE) to stimulate economic growth, while holding interest rates.
The move, which means effectively printing an extra £75bn of cash, has prompted fresh fears that the UK is on the brink of another recession."
Maggie b!t@h thatcher was big on tightiening the purse strings for anyone below upper class status or pig rich - now they are unable to do the same for the fat rich is the problem. The banks are just another means of control of the masses, the rich control the economy through stocks and shares, the government licks their butt and the system just accomodates their greed and self interest.
In simple language, the economy is going down the tubes while the rich run the country but as they are international are not directly affected and so sit back and watch.
Where is the protest, where is the free speech opposition, why isn't everyone supporting the Wall St protesters, why isn't everyone screaming about how the media is portraying the protesters as vandals while breaking multiple laws in beating them and preventing them demonstrating ?
We, the sheeple, are being suckered big time - and so many people support the suppression and illegal activities of our governments.
It's more of this trickle down BS isn't it?
I heard it suggested today that to give everybody in the UK £1000 would be far more effective than QE. It would also be cheaper.
Think about it, some people would go out and spend at least a substantial amount of that £1000 immediately whilst others would bank it, giving the banks money to lend rather than to divi up amongst themselves in bonuses.
It would also have a massive feel good factor to it which is probably why the government would never go for it, they want us to sweat!
Yep, it's the consumers that really create wealth. They need us to spend, the banksters just sit on it.
If you really think that "spending" is how prosperity is created, then please go $80,000 in debt!
Do your part!
Obviously spending isn't the key to prosperity. We need PROPER capital investment, which can only happen in an unhampered market.
How about a market unhampered by people with no money to spend in that unhampered market?
It does'nt matter how much capital investment flows, if people cannot afford to buy goods and services offered further wealth cannot be created. At no point in that post did I suggest that people borrow to spend. Spending is nit synonymous with debt.
The Fed issued over $16 Trillion to failing banks around the world.
We're WELL beyond QE2.
by Doug Hughes7 years ago
In 20 years, the history books will call this the 2nd depression. We are in a liquidity trap, according to Paul Krugman, nobel-prize economist. That’s central to the problem. “The term liquidity trap is used in...
by Alex Frias6 years ago
Question. If the Bush-era tax cuts were so popular and such the "economic reality" as it's being coined, then why did Obama fail to see this until recently. Where was his voice in favor of the Bush...
by James Smith5 years ago
http://www.unelected.org/audit-of-the-f … t-bailouts"What was revealed in the audit was startling: $16,000,000,000,000.00 had been secretly given out to US banks and corporations and foreign banks everywhere...
by lady_love1586 years ago
http://www.huffingtonpost.com/dan-dorfm … 67131.htmlThe action by the Fed to counterfeit a trillion new dollars will make the rich richer and the poor, poorer. Inflation will spark, your savings already earning...
by rhamson2 years ago
Two trains of thought are being bantered back and forth. Does a raising of the minimum wage create job loss and lower profits and more unemployment or does it increase disposable income thereby jump starting the economy...
Copyright © 2017 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.