Bank of england prints another £50 billion

**bigfootedfred** · August 06, 2009, 09:46 AM

The Bank of England's rate-setters have decided to pump another £50bn of new money into the economy in their programme of quantitative easing.
It will take their total spending to £175bn, unexpectedly going over the £150bn set aside by the chancellor.
In a statement, they said that the UK recession "appears to have been deeper than previously thought".

No, you always knew that, you just tried to bs us that it was better than it was, maybe you even tried to bs yourselves.

The rate-setters also decided to keep interest rates unchanged at their historic low of 0.5% for a fifth month.
BBC economics editor Stephanie Flanders said that the Monetary Policy Committee's (MPC) £50bn expansion of the programme had surprised many in the markets.

"Most expected the MPC to either put the quantitative easing policy on hold or simply spend the remaining £25bn authorised by the chancellor in March," she said.
"I think they believe that the fragility of the economy right now is such that there's more risk in doing too little than in doing too much," she added.
Following the announcement, the pound gave up much of its recent gains against the US dollar

Yeah, just keep printing more money, that'll work

http://news.bbc.co.uk/1/hi/business/8187360.stm

**Generaal Van Heutsz** · August 06, 2009, 09:51 AM

Originally Posted by Bigfootedfred

Yeah, just keep printing more money, that'll work

http://news.bbc.co.uk/1/hi/business/8187360.stm

It worked in Zimbabwe, everyone is filthy rich over there, they have the world record of trillionairs in Zimbabwe. I don't think any other country even has trillionairs. *They also have the highest GDP in the world and the highest consumer spending, so I believe the UK is on the right path, soon the recession will be over and GDP will start to sky rocket.

**Ahlerich** · August 06, 2009, 09:59 AM

good time to spend your money if you have some. better now then after the hyperinflation starts. next year autumn i assume.

**Generaal Van Heutsz** · August 06, 2009, 10:00 AM

Originally Posted by Ahlerich

good time to spend your money if you have some. better now then after the hyperinflation starts. next year autumn i assume.

* Better yet buy gold and silver, so you can keep an emergency fund....

**Mangalore** · August 06, 2009, 10:08 AM

Originally Posted by Generaal Van Heutsz

* Better yet buy gold and silver, so you can keep an emergency fund....

Risky business because those prices are already up because tons of other people had the same idea...

**Generaal Van Heutsz** · August 06, 2009, 10:14 AM

Originally Posted by Mangalore

Risky business because those prices are already up because tons of other people had the same idea...

I don't really know how much the british central bank is inflating but against the dollar gold is expected to rise to maybe even $2000 or more.....gold prices won't really fall. Some nations are talking about *a new reserve currency backed by gold, so that would increase gold price to. Silver is undervalued but probably won't play a role in the new reserve currency. If I had dollars, I would loose them asap, the same might be true for the pound but again I know too little about the financial situation of Europe in general and Britain in particular. The US$ is in dire shape this I do know...

**Каие** · August 06, 2009, 11:52 AM

Bloody.... hell. Now this is desperation, and the Prime Minister cannot be questioned on it until October when the Politicians holidays finish.

**michael123** · August 06, 2009, 04:01 PM

Only October? It just reminds you what hard lives these politicians lead, and why they just have to have another pay rise, and expenses to top up their tiny wages.

**Каие** · August 06, 2009, 04:05 PM

To be fair, they work in their constituency offices, but they are just absent from the House of Commons where the government is held to account.

**Denny Crane!** · August 06, 2009, 04:34 PM

A little bit scary.... I'm worried about what this is going to do to our economy. Hyperinflation aside from the horrendous effects on the economy would mean my insane mortgage is no longer that insane hahaha.