Good.

It worries we that the default assumption is now that, if inflation is within 1% of the target, QE is an inevitability. There is no evidence that it does any good for the real economy, and it is a dangerous, experimental policy.

When I hear people like Adam Posen saying that Japan has 'proved' that QE does not cause inflation, I get very worried indeed.

That should have read 'it worries me'. Oops.

Yeah inflation is 3 % Yet my food bill and energy is up at least 10% + ....

The magic of government statistics they can make the infaltion figure anything they want by substituting different items that are experiencing deflation like electronic goods in the basket of commoditied they use to calculate CPI!

In America they do not even include food and energy in there CPI calcualtions!!!

Dont beleive a word about the officail infaltion rate jsut look at your food and energy bill's that are rocekting to see the real infaltion rate, because soon Food and energy will be taking up the majority of peoples disposable income

WageslaveX14. And the alternative is? Ultimately the BoE should start buying other assets but for the time being it helps the government to fund at great rates. Additional fiscal stimulus is off the table given how big the stimulus is already. Infrastructure spending separately funded is just talk, Uk planning procedures torpedo all of that, tax code changes too difficult, see the last budget. So. This is what's left hopefully with some additional liquidity stimulus like the ECB LTRO equivalent. Yes pushing on a piece of string, but the only thing we have got bar buying lots of private assets outright.

I am with Blanchflower though, and hopefully we get QE of another gbp 100bn quickly and more aggressive liquidity provision.

As shown in this article, the Bank's policy of ultra-low interest rates have also impacted the country's pension schemes:

http://viableopposition.blogspot.ca/2012/06/worlds-growing-pension-pains.html

The level of under-funding has now reached over £300 billion or nearly one third of the total public debt.

Yes, so none of these funds in trouble had proper duration matching on, nor did they take in enough contributions. If they stick to their former allocations they might get lucky, I wouldn't hold my breath though given how poor the outlook really is. Don't blame the BOE for this, but trustees and managers, and sponsors for always underfunding in years following great performance.

I myself am in the unlucky situation of being in a scheme of one of the UK banks. It is massively underfunded, but I guess Bob never minded a bit of gearing.

I am looking for a safe investment for my little nest egg.
Does anyone know the name of the company that provides printers ink to the Bank of England?
: - )

Hahaha. It's actually De La Rue. But they won't get much of the benefit of most of it (electronic)

I am looking for a safe investment for my little nest egg.
Does anyone know the name of the company that provides printers ink to the Bank of England?

Look no further than physical precious metals.....in fact its the only thing left to invest in and protect yourself from the collapse of fiat currencies

Here are some research sites for you that will lead you to other research sites , if you spend enough time researching on these sites you will realise the potential of owning precious metal rights now

Kingworldnews.com
maxkeiser.com
http://dont-tread-on.me/
http://sgtreport.com/
http://www.futuremoneytrends.com/
zerohedge.com

Zerohedge research ? That's like saying that the monster raving looney party were serious! Re precious metals, please explain how to value Gold. None of the analysis is much more than the dogmas taught in the Catholic church. Nobody knows how to value it, other than that it "will go up forever"

Yes Zerohedge the most respected, highly regarded ,accurate popular ,finanical news site on the face of the planet.

How to value Gold,

Gold's value is purely psychological as value does not exist outside of the human mind,

Then again Fiat currency like the Dollar , GBP ,Euro, Yen only have value because psychologically we for some reason still have trust it will be worth anything in a years time even though they are just pieces of paper that are gettingdevalued by the central bank on daily basis through QE.

However , as the fiat currencies become more and more devalued which is 100% inevitable as every single other fiat currency in history has become compeltely worthless (fact)

The psychological trust of these currencies will be lost and then that value will find a new medium, which as it has been for the last 6000 years Silver and Gold the only things in history that have been classified as real money. When this happens there value will sky rocket. Why do you think central banks purchasing of Gold is skyrocketing, because they dont know whats going to happen!

if you dont think this will happen i would start doing some proper research on zerohedge and other sites listed above instead of trolling with no intellectual backbone to back up your claims.

Whats even funnier is if you even dare mention precious metals on any newspaper forum you get instantly attacked by trolls, this instance above proves my theory , and that theory is that governemnt oepratives fronting as legitamate commenters are used to quell any interest in anything that would attack the central power of government and the bankers which they derive from the printing of fiat currency through the fractional reserve banking system.

The next thing they do then is comment on your theory comment, by calling it nothing but consiparcy theory! The oldest trick in the book,

Shouldn't the sub-heading for this article be reading:-

“Bank of England governor blocked from pumping extra £50bn into economy to help banks desperate to build up their reserves.”

This would be more representative of the the truth and the real reason lying behind this QE favour Mervyn King has been operating for so long for his incompetent banking chums.

QE devalues the Pound and makes exports more attractive , but at the same time just inflats the rest of the economy and normal working people are worse off.
Make the rich richer and the poor poorer, that is the recipe for global collapse as we are already seeing in parts of the globe.

Could not agree more , but this also applies to land until we have a Mugabe moment and give land back to the state or favoured croonies.

KeiserCelente

Whats even funnier is if you even dare mention precious metals on any newspaper forum you get instantly attacked by trolls

... and JM Keynes.

It seems to me that King and those supporting his QE policy have decided that ordinary peoples pensions and savings no longer matter and that they'll just have to accept that losing one's life savings is hard luck.
This wouldn't be so bad if we were "all in this together" but their pensions and those of MP's is guaranteed and gold plated.
This government now seeks to persuade the younger generation to start saving for their pensions "as soon as possible"! If the young have any sense they'll see what's happening now and spend the lot before unscrupulous MP's and the BoE decide to play fast and loose with their money as well!!!

Bank of England governor wanted to pump extra £50bn into economy

I do wish people would learn how this works.

There is no pumping involved.

An amount of Gilt edged paper is removed from the economy and replaced with some not so gilt edged paper at a lower interest rate.

The effect is on the interest rate, which according to the Bank of England has Magic Cow Powers.

QE is the prime means by which the government's budget deficit is funded. Fiat money is spent buying existing debt from banks, insurance companies and pension funds who, for regulatory reasons, hold gilts and so buy fresh issues.
This drives the price of government debt up and its yield down giving Boy George something to crow about. In turn, it facilitates government spending and so augments the politically sensitive GDP figure. It has the further advantage, despite what the MMT crowd say of increasing inflation and so pursuing the policy of successive UK governments of default by stealth. Government spending augments individual spending on imports and as foreigners have a decreasing need for sterling, drives the value of sterling down and import prices and hence inflation up. That fall in the value of sterling being welcomed by the dim wit economists and commentators attracted by reason of ego into tv studios to claim this as a master stroke in making UK exports cheaper.
A sad attempt by a sad country to kick the can down the road as UK debt steadily and inexorably grows.

Whats even funnier is if you even dare mention precious metals on any newspaper

That's because precious metals are just that precious and a metal.

Oil is similarly a precious hydrocarbon. It is precious and a hydrocarbon.

Both of them are just assets. Like land, or widgets.

A great shame this wasn't a vote for him just to go away and stop making even more of a mess of things than he already has in the last 10 years.

May I be so bold that that one is held next month and he is booted out early with a nice cup of coco and a copy of the Radio Times?

Oh look, Last Of the Summer Wine is on Yesterday, that'll be nice.

It has the further advantage, despite what the MMT crowd say of increasing inflation and so pursuing the policy of successive UK governments of default by stealth

And yet inflation falls as QE continues.

So there isn't even any correlation now, never mind any causation.

The Austerity measures have shown in spades that the government is not pulling money from the private sector that it would rather spend itself. The causality is entirely the other way around. The private sector is desperate for somewhere safe to stash its spare cash - and that's what 'government savings bonds' provide.

Government spending augments individual spending on imports and as foreigners have a decreasing need for sterling, drives the value of sterling down and import prices and hence inflation up.

And yet studies by economists have shown no such correlation. There is no robust theory of exchange rates. None. Nada.

So if you've invented one, I would expect you to have retired to your own private island on the proceeds.

I wish you would learn that this increases in the amount money in circulation, which is then used to fund imports, the UK running a permanent balance of trade deficit.
Foreigners holding that sterling have no need of that sterling for purposes of buying UK goods as the UK runs, er, a permanent balance of trade deficit. The only reason for holding that sterling would be the 'investment' opportunities, i.e bets they can have on the 2:30 at Canary Wharf, afforded by the City. So increaseing the external debt liabilities of the UK, liabilities that make the UK look increasingly like Iceland,
Those investment opportunities looking increasingly weak. So sterling falls in value and import costs rise so creating more inflation
And then there are the social costs of those in the private sector who are encouraged to save in poorly managed funds typical; of those foreigners increasingly avoid. These funds being obliged to waste savers money on this paper tissue asset. Their pension on retirement being a disgrace as they are not invited to ride the gravy train packed with public sector passengers.
Sound money requires a sound attitude of mind. Tissue paper money produces a society of equal substance.

QE devalues the Pound and makes exports more attractive

No it doesn't. The exchange rate graphs show that the pound has risen during QE.

It's up against the Euro 7.58% and fractionally up against the dollar since October last year.

The data is here. Knock yourself out.

http://www.oanda.com/currency/historical-rates/

Er, read the headline. They wish to re-commence qe. To re-commence requires it having previously stopped.
Read this and learn
http://good2use.com/wordpress/?p=6650

I wish you would learn that this increases in the amount money in circulation, which is then used to fund imports, the UK running a permanent balance of trade deficit.

No it doesn't.

An amount of Gilts are removed from circulation, and an amount of Sterling is introduced.

And that Sterling just stays as savings because there is no transmission mechanism for it to go anywhere.

The only reason for holding that sterling would be the 'investment' opportunities

No. They hold it because it is an investment in its own right. You have to look at the aggregate. Foreigners buying assets is a swap. The person who had the asset now has the cash and vice versa.

So for there to be a trade deficit at all a foreigner entity has to hold the *cash*. And you'll find that the majority of those are held by the central banks of our export partners, where it will stay forever as draining a export target of cash is a tool to keep their own currency from flying upwards and demand up.

So sterling falls in value and import costs rise so creating more inflation

And yet it doesn't, because as I said there is *no* robust theory of exchange rates. As the financial characters move out, those interested in the improving returns on real assets brought about by stimulus spending move in.

Layer on that expections to the power 'n' and it could go anywhere.

Sound money requires a sound attitude of mind. Tissue paper money produces a society of equal substance

Sound money require an attitude of mind that denies the very essence of humanity. That we do each other favours on the understanding that they will be returned in the future.

To get rid of credit would require a reprogramming of the human condition.

Desperate stuff now.

The second batch of QE ran from 6 Oct 2011 to 3 May 2012

Sterling Index 6 Oct 2011: 78.8336
Sterling Index 3 May 2021: 83.5567

QED.

Nearly 50% of sterling's trade weighted value is related to the Eurozone. Problems in the EZ have caused an influx of funds from the EZ, hence the further lowering of gilt yields and support for sterling.
Your base proposition, that sterling is held for reasonsons of intrinsic value They hold it because it is an investment in its own right is obviosuly false since it is an electronic creation whose value can only be backed by tangible goods. MMT theory itself recognises that. Goods the UK fails to produce, which only leaves the investment account as a home for those sterling holdings.
And with yields of less than 2% with inflation at over 3% anyone considering that an investment is surely mentally incapable.Centrica corporate bonds pay 5.2% and HSBC over 6%. Both safer bets than HM Treasury.

Bank of England governor wanted to pump extra £50bn into economy

So the BoE boss wanted to give virtual money to bankrupt banks, for them to lend to a bankrupt country and pay themselves fabulous bonuses, and then send real bills to the ordinary folk, so that they can pay for the whole shabby scam with their pensions and savings!

Who says this country's economy is being run by a bunch of callous Conservative cretins?

Because they're right!

Hearing news about the Bank of England's every fart and belch is really boring. It was a failing institution, but its governor had been dissembling success. Let the Mervyn be gone, not that anything is certain to improve, but at least it might have a small chance.

Agreed, but Is Mervyn King a Conservative? He is known as a neo-liberal economist (free-market monetarist), but that is not the same as a Conservative, or even a conservative..