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Re: QE and New World Economics      7-Nov-09 10:59 AM    
‘what you are saying AlexB is that the current labour government is NOT printing money-it is easy to print money-the problem comes when you have to take REAL unpopular decisions to avoid the side effects of the ignorant money printing consumer boom!’

I think this is about UK being Weimer Germany.
Let me explain, taking out one thing in what hapend without looking at the whole picture and amounts involved is not possible.
Germany in 1921-23 was a country devastated by war.
Her industrial heart had been ripped out and after significantly restricting her ability to generate income she was asked to pay massive war repatriations.
If she fell behind her payments more of her territory and $%^&ts were occupied by allies.
The only way she could pay war repatriations was to print marks and purchase dollars or to get high interest dollar loans from US banks.
That was the reason for her hyperinflation.
Printing money without the other factors will not lead to hyperinflation.
In the case of UK it is just a presumption that massive amount of cash will be made available to consumers to cause hyperinflation.
Plans to freeze pays and increase taxes will infact mean less money available and thus reduce demand for goods with a fall in prices.
The other possibility is imported inflation due to UK inability to meet her debt payment.
There is no evidence yet that money will be printed to pay off debt.

Bottom line is that while some inflation is possible chances of a Weimer or Zimbabwe style hyperinflation is very remote indeed.
Even countries like Ukraine and Pakistan who have been printing money for a decade to meet they expenditure have run moderate hyperinflation (around 20% per year) and not 29,500% per month seen in Germany.

£200 billion is a trivial amount considering the 2000 billion plus UK economy.
Weimer inflation is possible when UK is a war devastated economy printing more money then her GDP every month.
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Alex B

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Yet more QE announced by the monkeys in charge of BOE. All they have succeeded in do ...
Christos 1-Nov-09 12:37 PM  
 
self interest means they wish to print to keep paying their own wages
Ian RATE IT 1-Nov-09 08:25 PM  
 
before QE, centre for policy studies estimated true Govt Debt at £1.5 tril ...
Kernow (2 Ratings) 1-Nov-09 09:45 PM  
 
Very sad post Kernow, but I fear your vision of the future is close t ...
Mike L RATE IT 2-Nov-09 10:22 AM  
 
kernow "Try writing na letter to your local newspaper, enlightenin ...
Declan B RATE IT 2-Nov-09 10:51 AM  
 
The thing about external debt is interesting. UK external debt is ...
Alex B RATE IT 2-Nov-09 11:15 AM  
 
Kernow, If the government issues a £1000 bond which is bought by a ...
unapologist RATE IT 2-Nov-09 11:36 AM  
 
unapologist.... yes but wouldn't it be nice to live in a coun ...
FIGJAM RATE IT 2-Nov-09 11:47 AM  
 
"yes but wouldn't it be nice to live in a country that is b ...
Declan B RATE IT 2-Nov-09 12:09 PM  
 
I don't watch TV. My wife watches TV and whilst she ...
FIGJAM RATE IT 2-Nov-09 12:15 PM  
 
JDR, "wouldn't it be nice to live in a country that is b ...
unapologist RATE IT 2-Nov-09 01:48 PM  
 
There are other ways to do things. You may have seen t ...
Louis Supers... RATE IT 2-Nov-09 01:57 PM  
 
‘Why do the West have to do everything on Credit, ...
Alex B RATE IT 2-Nov-09 03:26 PM  
 
yes I don't mean the assets that are made of paper bas ...
FIGJAM RATE IT 2-Nov-09 01:59 PM  
 
FIGJAM,the members of the weimar government actua ...
richard RATE IT 6-Nov-09 06:49 AM  
 
‘FIGJAM,the members of the weimar government ...
Alex B RATE IT 6-Nov-09 09:26 AM  
 
‘FIGJAM,the members of the weimar government ...
Alex B RATE IT 6-Nov-09 09:26 AM  
 
what you are saying AlexB is that the c ...
richard RATE IT 7-Nov-09 09:58 AM  
 
Re: QE and New World Economics
Alex B Not rated 7-Nov-09 10:59 AM  
 
Alex B,they are using the sam ...
richard RATE IT 9-Nov-09 03:54 PM  
 
Richard "Printing mon ...
Declan B RATE IT 10-Nov-09 10:51 AM  
 
Christos - Yeah! Them bloody foreigners! Eh Christos? "Slow recovery, Yea ...
Declan B RATE IT 2-Nov-09 10:54 AM  
 
"Yet more QE announced by the monkeys in charge of BOE" Where is this announ ...
FIGJAM RATE IT 2-Nov-09 11:19 AM  
 
Warren Buffett said it all. Do not borrow money. IF UK companies had been ...
Kernow RATE IT 2-Nov-09 08:15 PM  
 
Declan, rather than having a go why dont you extend me the courtesy o ...
Christos RATE IT 2-Nov-09 08:39 PM  
 
Christos, where is the annoucement for more QE?
FIGJAM RATE IT 2-Nov-09 08:48 PM  
 
figjam, Moremysticdave beat me to it. But I feel you are mi ...
Christos RATE IT 2-Nov-09 10:48 PM  
 
This family in debt Christos. Is this Gordon Browns` " ...
Louis Supers... RATE IT 3-Nov-09 08:30 AM  
 
sustainable development MEANS THE GOV IS GOING TO ...
liam m RATE IT 3-Nov-09 09:03 AM  
 
Christos, You said: "Yet more QE announced by th ...
FIGJAM RATE IT 3-Nov-09 09:53 AM  
 
Figjam i think it is a certainty that QE will be ...
Christos RATE IT 3-Nov-09 06:15 PM  
 
Thats rich coming from you FIGJAM!!! Like you hav ...
Mike L RATE IT 4-Nov-09 05:11 PM  
 
Mike L, still have a hard on for me do yo ...
FIGJAM RATE IT 6-Nov-09 10:10 AM  
 
WTF are you on about FIGJAM.... I think ...
Mike L RATE IT 9-Nov-09 04:23 PM  
 
Christos Do you think that the UK population will h ...
Declan B RATE IT 3-Nov-09 10:22 AM  
 
Declan how does it work then?
Christos RATE IT 3-Nov-09 06:10 PM  
 
'UK has nothing but debt' Are you sure? Read this: Fraser Nels ...
Alex M RATE IT 2-Nov-09 10:47 PM  
 
It is coming this week. If you read the FT today, you would have seen the ...
moremysticda... RATE IT 2-Nov-09 10:17 PM  
 
mysticdave, yes I am aware there is speculation that they are goin ...
FIGJAM RATE IT 3-Nov-09 09:55 AM  
 
FIGJAM Another £25bn QE would be a drop in the ocean and not wor ...
Kernow RATE IT 3-Nov-09 12:11 PM  
 
kernow There is a simple rule of thumb: If you find y ...
Declan B RATE IT 3-Nov-09 12:28 PM  
 
and as for the facts in the balance of my case how do ...
Kernow RATE IT 3-Nov-09 12:33 PM  
 
kernow based on your historical ramblings: not ...
Declan B RATE IT 3-Nov-09 01:51 PM  
 
In round figures UK Personal Debt 1997 was ...
Kernow RATE IT 3-Nov-09 05:45 PM  
 
Kernow having read your post I am of th ...
Christos RATE IT 3-Nov-09 06:24 PM  
 
Christos, Let's say the governm ...
unapologist RATE IT 4-Nov-09 09:49 AM  
 
Christos This is my understandi ...
Declan B RATE IT 4-Nov-09 10:52 AM  
 
QE is allowing the banks to l ...
Kernow RATE IT 4-Nov-09 05:17 PM  
 
If houses are selling (a ...
Louis Supers... RATE IT 4-Nov-09 05:25 PM  
 
We will only be stopped ...
Mike L RATE IT 4-Nov-09 05:37 PM  
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