[U.K] Bank begins printing money

Its that the way UK is going to stimulate the economy? hey that is what US has been doing for quite sometime.

And guess what is not working.

reply to post by passenger


Yes you can.

Hitler stabilized the Nazi German economy in the 30s with increased levels of public spending (Autobahn being the flagship), utilizing a fiat currency.

He actually managed to reverse the damage that hyperinflation caused under the previous Weimar administration. The introduction of the Rentenmark was the stabilizer, but Hitler's use of quantitative easing of the Rentenmark helped speed recovery.

I know it seems counter intuitive, but before the bubble crashed, there was a very rapid creation of wealth. The same principle can be used in a controlled manner to ease some of the damage.

Of course, it could just be a conspiracy to get rid of the sterling in favour of the euro. I really wouldn't be surprised.

Originally posted by 44soulslayer

but before the bubble crashed

I think this is the key point here.

And I too think this has been entirely contrived.

reply to post by 44soulslayer


Hitler was very successful economist.

Pity he didn't last...

reply to post by DangerDeath


Lets not resort to reductio ad hitlerum... despite his other evil actions, his economic policy during that period was successful for Germany.

Only printing 75-150 Billion? Maybe you don't understand what the Velocity of Money is? Through fractional reserve lending you get a multiple of 10X. That's 750 Billion to 1.5 Trillion.

reply to post by passenger


i was thinking this
how long before we have a Million pound Note?
thats only worth a couple sents on the world stage

goverment just loves making the hole bigger every day

The introduction of the Rentenmark was highly significant, it allowed the currency to stabilise and supported by the Dawes Plan it stood a good chance of not succumbing to inflationary pressures as had previously happened. The new Rentenmark was valued at 1 Rentenmark to One Trillion old marks (no typographical error there). The Rentenmark was exchangeable for bonds in land and industrial plant – in other words they were worth something. Inflation ceased to be a problem, the German people accepted the value of the new currency and businesses accepted it as being of worth.

The stability of the new currency couldn’t be taken for granted however and a range of new fiscal measures were implemented that would keep inflation and the exchange rate at acceptable levels. For example, the government opted to stop offering credit to industry as this had led to widespread speculation and consequently inflation. Borrowing therefore slowed and the circulation of money returned to ‘normal’ levels. Similarly the government altered the policy with regards the printing of money. Previously the government had increased the amount of money being printed as inflation had risen, this had simply led to prices rising even more rapidly. Now the government decided that the amount of money in circulation would be strictly limited to the real worth of economy.

www.schoolshistory.org.uk...

Apparently the Rentenmark was not devalued in the way the previous currencies were.

IMHO things would have to be pretty bad here before the British people would leave the pound and accept the Euro. I wouldn't be supprised if that was the intention though.

Actually the Rentenmark came in 1923, a decade before before Hitler became chancellor. It was in fact the "monetary policy spearheaded by Hjalmar Schacht—the Central Banker—together with the fiscal policy of German Chancellor Gustav Stresemann and Finance Minister Hans Luther brought the inflation in Germany to an end." Source

[edit on 6-3-2009 by TheComte]

reply to post by HimWhoHathAnEar


Actually that's a good point, I didn't consider that.

I think the bulk is going against gilts, so the leverage shouldn't be existant there.

According to the Daily mail(uk newspaper) They are not actually printing money, but they are rather putting more numbers into the system. Virtual money that is.

reply to post by 44soulslayer


gilts are Debt and Monetizing Debt is Inflationary.

MR BOB,

Paper Money is Virtual Money since it has no intrinsic value of its own. So I fail to see the difference between the paper and electronic versions of counterfeiting, which is what we're talking about.

Originally posted by HimWhoHathAnEar
...
Paper Money is Virtual Money since it has no intrinsic value of its own. So I fail to see the difference between the paper and electronic versions of counterfeiting, which is what we're talking about.

Beg your pardon, but since it's the government doing it , it's not counterfeiting, it's a monetary instrument.

More seriously , it's dreadful to see the UK head-diving onto this quagmire, but hey, we had it coming. If we look at things like the silly average price of a property, when compared with the average wage, we can easily understand that this was already an unrealistically moving economy, moved by all the greed of the Andy Hornsby's of this world. In the end, we are getting what we bargained for, people never worried where their 'super-saver' rates where coming from, nor where overly concerned on why they and their friends could spend far more than they ever could hope to receive.

Maybe people will learn to think.

Originally posted by HimWhoHathAnEar
Only printing 75-150 Billion? Maybe you don't understand what the Velocity of Money is? Through fractional reserve lending you get a multiple of 10X. That's 750 Billion to 1.5 Trillion.

I didn't even think of that! Star for reminding me.

This could essentialy allow them to loan out (therefore 'materialise electronic money') around a trillion!

Now that would sink the currency.

EMM

[edit on 8-3-2009 by ElectroMagnetic Multivers]