The Virtual Pub
Come Inside... => Saloon Bar => Topic started by: Miss Demeanour on March 05, 2009, 01:53:04 PM
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Ok - so interest rates are now down another half per cent. Just in time for anybody with ISA's etc to receive their annual interest on their accounts - cynical not me evil:
This concept of quantitative easing is something I have not heard of before - as I understand it - we are pumping more money into the banks to encourage them to lend.
But its alright because it's not 'real ' money it's all electronic noooo:
) The Bank creates new money electronically in its accounts.
2) The Bank buys bonds (companies’ IOUs) and gilts (Government IOUs) from commercial banks.
3) The value of the bonds and gilts bought is now credited to banks that sold them.
4) The commercial banks can make new loans against the increased funding.
5) Extra lending boosts cash and credit flowing in the economy.
6) Extra demand for bonds and gilts from the Bank drives down interest rates for business and consumer borrowers.
7) Flows of extra and cheaper money stimulate growth
That'll work evil: evil:
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I wish I could create some electronic money to be used just by me evil: But that would be illegal
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Q Inflation... ::)
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I'd like to see Bird & Fortune's take on this ;)
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The problem is that the plan stops at step 4:
The commercial banks can make new loans against the increased funding.
The bank have enough money already to make loans it's just that they're holding on to their funds, just as you and I are not spending our savings at the moment. None of know what the future holds for us.
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I did some Quantative Easing this morning ~ felt much better afterwards ~ had to open the bathroom window tho' redface:
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The problem is that the plan stops at step 4:
The commercial banks can make new loans against the increased funding.
The bank have enough money already to make loans it's just that they're holding on to their funds, just as you and I are not spending our savings at the moment. None of know what the future holds for us.
Especially not an "Idiot Pinko" ::)
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I did some Quantative Easing this morning ~ felt much better afterwards ~ had to open the bathroom window tho' redface:
See - those cremated vegetables are good for some things lol:
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The bank have enough money already to make loans it's just that they're holding on to their funds, just as you and I are not spending our savings at the moment. None of know what the future holds for us.
Spot on Unc. Not only their funds... my fecking funds too Banghead
7 - 10 working days to make a transfer.... Arse evil:
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I did some Quantative Easing this morning ~ felt much better afterwards ~ had to open the bathroom window tho' redface:
See - those cremated vegetables are good for some things lol:
http://www.youtube.com/watch?v=LhMkUPe8GyQ&eurl (http://www.youtube.com/watch?v=LhMkUPe8GyQ&eurl)
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lol: lol: lol:
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The problem is that the plan stops at step 4:
The commercial banks can make new loans against the increased funding.
The bank have enough money already to make loans it's just that they're holding on to their funds, just as you and I are not spending our savings at the moment. None of know what the future holds for us.
Especially not an "Idiot Pinko" ::)
True. ;D
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The problem is that the plan stops at step 4:
The commercial banks can make new loans against the increased funding.
The bank have enough money already to make loans it's just that they're holding on to their funds, just as you and I are not spending our savings at the moment. None of know what the future holds for us.
Especially not an "Idiot Pinko" ::)
True. ;D
It must be tough to be jostled by someone who admits to living in Wales!