61 1 min 9 yrs

I’ve argued against the printing of money by central Governments since it was first introduced under the euphemistic cloak of convenience that is “quantitative easing”. To my mind, this is vindication for all us cynics and an explanation as to why GOVERNMENT thinks it so useful…
McKinsey-QE-graphic
As you can, there is only ONE big winner but lots of losers. It is a wicked policy but one that the State has become hooked on and so have the markets. The very THOUGHT of the withdrawal of the free money will strike at the heart of the false boom …. and they it will go bust. So, just keep on printing and assure the gullible that we all win from it.

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61 thoughts on “THE GREAT QE CON…

  1. Sticking with real definitions, the inflation tax has always been theft. Money printing is theft.

    One undeniable success of this current round which, in scale and duration, is unprecedented by a million miles, is that we have the greatest financial crime in the history of the world – the literal theft of tens of billions from the people here, in the US and Europe – and not only do few complain, but the perpetrators have convinced many that it’s necessary.

    This is the crime of the century.

  2. And this short speech by Bill Still addresses the issue – monetary reform, meaning no government borrowing and no currency created by banks:

  3. The bankers are not being arrested because they own the politicians of the Establishment parties (they ARE the Establishment), they own the judiciary, the ‘education’ system, the media and the corporations. They also own the minds of those who are willingly corrupted by the money created by themselves for the reward of their dupes. The summary below is of interest:

    http://therebel.org/index.php?option=com_content&view=article&id=711614:a-litmus-test-will-you-arrest-the-bankers&catid=211:videorebel&Itemid=1229

  4. Again, yet again, they walk:

    JP Morgan agrees $4.5bn mortgage settlement

    US investment bank JP Morgan has agreed to pay $4.5bn (£2.8bn) to investors who lost money on mortgage-related securities during the financial crisis …

    Last month JP Morgan agreed a separate, preliminary $13bn deal with the US government over mortgage securities …

    What JP Morgan is alleged to have done was sell the mortgage-backed assets knowing full well that many of the home loans were in fact very risky.

    In other words, these are mega-billion frauds. Who else can avoid prison for a mega-billion fraud? In the US, if you’re not part of the power elite, you’ll never be released, but yet again JP Morgan’s criminal syndicate doesn’t suffer a single arrest.

  5. Great comments, totally agree.

    The low interest theft has saved the UK government £120 billion in interest charges. The market can force rates higher by offering lower bids for new government debt which will raise the yields and force other rates higher. It will happen.

  6. As all on this thread pretend not to remember, as 2008 turned into 2009, the US and Europe and beyond were very, very close to a meltdown of the economic system. The credit system had frozen. Companies were afraid to extend credit.

    A depression – a real one – very nearly happened.

    A depression that would have been an inconvenience to the relatively wealthy westerners who read this blog, and a great disaster to the many in Asia and South America whose very recent and relative and tenuous prosperity comes from selling stuff to America, Europe and Japan. There would have been hunger.

    The meltdown of the economic system was avoided because Ben Bernanke and others took extreme measures. These measures worked.

    QE and the other measures taken to avoid economic collapse benefit every person reading this. Unless they’re gold coin hoarders who had a depraved wish to be the ” last man standing ” in a Mad Max post apocalypse world.


    Pete trashes JP Morgan for a $4.5 billion settlement, but he and the lazily written BBC article he links to leaves out the following:

    -The overwhelming majority, perhaps all, of the bad actions alleged were committed by employees of Washington Mutual ( bank ) and Bear Stearns before JP Morgan Chase bought those institutions. And they bought those institutions at the request of the US government in the desperate days when the economy was in freefall.

    – Jamie Dimon didn’t get Chase into the CDO / Credit Default Swaps business. They were already in it when he took the top seat there in July 2004. He studied the complex derivatives, didn’t like what he saw, and ordered Chase to start a massive unloading of the exposures.

    This left JP Morgan in a much stronger financial position than many of its rivals, including Citigroup, and Bank Of America, which is why the feds implored them to buy up Washington Mutual and Bear and the others.

    ( I have no financial interest in Chase, nor have I ever had any )

    There has been no ” low interest theft ” unless someone wants to make the point that there is any person in the UK or US who is -only- a saver and who has no stake in the financial or pension system otherwise.

    I don’t know anyone who is in this category, who only cares about interest paid by a bank account. People who own no stocks, mutual funds at all, who don’t own any land, a house or an apartment.

    The ” low interest theft ” sloppiness also presumes that even if interest rates were higher that bank interest rates would have a lower spread against inflation than we have now.

    What about retirees? In this country, many have private pensions that are not indexed for inflation. These retired folks do very well from the current low interest/low inflation environment.

    This is one of the laziest and sloppiest threads anyone has ever seen here, and that’s really saying something. Some of you should know better.

  7. Phantom’s correct – things are much better for a few of us than they are for the rest. If you’re one of the few, enjoy life 🙂

  8. In a ruined world economy, all would have been crushed.

    An incredibly obvious point, that none of you managed to think about.

  9. An incredibly obvious point, that none of you managed to think about.</em

    I will tell you what I think about, and I have asked this question before, printing billions and billions of paper notes (cash money), generates 100's of tonnes of weight, in fact i would imagine so much weight on pallets that even non-stop printing presses, would fill thousands of pallets of hard cash stacked five feet high ..

    So with hundreds and hundreds of Artic size lorries lined up to transport all those palllets of printed hard cash in banknotes .. where is it all delivered to?

    And who?

  10. I am asking for help here ..

    Where is all that hard printed cash delivered to?

    And who?

    Someone, somewhere must know.

    Phantom, you profess to be a financial whizkid, maybe you could enlighten me

  11. It is delivered to me, in unmarked sacks.

    I’d tell you where I keep it, but I’d have to kill you.

  12. Phantom

    Don’t feel too bad, It is a pretty tough question, I have yet to get an answer out of anyone on the matter.

  13. Apparently QE is ‘printing money?

    So they don’t actually print money then.

    They just say they do?

  14. Phantom, on November 18th, 2013 at 2:00 PM Said:

    I hate to tell you, but the huge majority of money is not in cash or coins.

    Look it up.

    Why not just tell me?

  15. Okay, I suspected as much, they don’t actually print bugger all ..

    Is this printing money?

    These days the Bank of England does not have to literally print money – it is all done electronically.

    However, economists still argue that QE is the same principle as printing money as it is a deliberate expansion of the central bank’s balance sheet and the monetary base

    Another bank robbery in progress, why does no one call the police?

  16. Harri

    I’ll come back to you later, on another subject.

    I will be asking you to make a major contribution to it, based on your first hand experience.

  17. Phantom, on November 18th, 2013 at 2:33 PM Said:

    Harri

    I’ll come back to you later, on another subject.

    I will be asking you to make a major contribution to it, based on your first hand experience.</em

    If it's surviving a heart attack .. I am your man 😉

  18. It is now, but the heart attack surgery and aftercare was private.

    BUPA put up their prices so much for little in return, that even after my companies contributions it became far too expensive.

  19. By the way, I still see the same consultant, only not at the private clinic.

    And i prepay my medication yearly £110 for a medical card for all prescriptions, apparently and according to N.I.C.E heart attack medication is not ‘life threatening’ even though if you do not take the medication you risk dying.

    Only Cancer, diabetes and thyroid is now classed as ‘Life threatening’

    Nice 😉

  20. At the specialists, at the Hospital, in my experiance, yes, but the private healthcare was far far superior.

    At the doctors .. no

  21. I believe that you said that you relocated back to the UK due to the health issue.

    Was this move made so that you could access the NHS?

    Or to access better private care at the time than was available in Slovakia?

  22. Was this move made so that you could access the NHS?

    Or to access better private care at the time than was available in Slovakia?

    No Phantom, I was already in the UK, I travelled back to Slovakia to collect the rest of the family ( I drove there from the UK ) and to keep awake on the 26 hour car journey I drank 10 cans of Red Bull, that was the trigger for the heart attack, By the way I paid full national insurance in the UK for over 30 years, I owe the NHS system .. nothing.

    I had private healthcare in Bratislava private hospital, owned by Germans, it was very good.

    I carried on my private healthcare in Harpenden Spire hospital UK, and one final assessment at an NHS hospital, I waited for 3 hours to be seen, but still better than i expected.

    The doctors is a different story, I was still registered at my local doctors, when I left i reckon he had about 600 patients, when I returned he had about 6000, not many of them English, it takes about 4/5 weeks just to get an appointment, and even if you go private, you have to be referred to an NHS doctor first, and as I said that alone can take weeks upon end.

    By the way, the private healthcare bill for surgery, ambulance, and ICU was a tad over 25,000 Euro’s

  23. Phantom, on November 18th, 2013 at 3:18 PM Said:

    I believe that you said that you relocated back to the UK due to the health issue.

    The main reason I moved back to the UK was financial, We have property back in the UK, and the Euro is literally killing people back in Slovakia, it just became too expensive to live a half decent life.

  24. Those “energy drinks” are bad news.
    But good to hear you got the best treatment directly after the attack.
    I presume your contract didn’t provide for continued treatment after retirement.

  25. Red bull, I had never drank the stuff before ( well only with Vodka ) .. I had absolutely no idea just how dangerous caffiene can be taken in large amounts.

    Never again will I ever touch the stuff, or any other energy drinks.

  26. Noel

    I am not retired.

    I only gave up BUPA, the same as most of the engineers did at my level in the company, because the monthly payments went up to silly money every month, and the company were paying consdierable amounts, only for BUPA to place more and more stipulations on how much treatment and what treatment can be claimed for.

    The private care was faultless though.

  27. I have no idea if this is true, but if you have private heart surgery, the stents they fit are the chemical release type, and are very expensive, the lifespan is, I have been informed quite limitless, your body will give up before they do, but the NHS fitted stents are non-chemical release type, and do have limited 100% working lifespan.

  28. That’s the problem here too — whether its public or private care or public or private insurance, there has been very considerable cost inflation.

    Its a tough, complex issue to deal with and it’s not one that the left or right sloganeers add any value to.

    The good news? There’s a lot of great new machines, drugs, and techniques.

    The bad news? That stuff costs a lot of money to invent, and those costs have to be recouped somewhere.

  29. The good news? There’s a lot of great new machines, drugs, and techniques.

    So very true, 10 years ago, if someone suffered a heart attack the survival rate was I have been told very slim, now it’s over 75% survival rate if you actually get to the hospital in time for treatment.

    I only had heartburn for several hours, it started travelling on the Autobahn through Germany, when I reached Bratislava the pain was quite intense, my wife is a nurse and suspected that it was more than simple heartburn, and drove me to the private hospital she worked at, well, the rest is history.

    So, if you are going to have a heart attack .. have it in the presence of a couple of doctors 😉

    I can now only quaff one small glass of red wine in the evening, no smoking, and all low-cholesterol food, plenty of excercise and the Statins at first caused me all sorts of muscle problems and aches and pains.

    And I only took 6 weeks off work, let’s see the youth of today do that 😉

    On another note, the NHS sessions on rehab I had only wanted to patronise
    talk about one thing and one thing only ‘Smoking’ they were infatuated with the subject, whilst the private healthcare wanted to discuss a far wider range of health topics, I actually mentioned this to the same consultant who treated me privately, I was interested to understand why when he saw me as a private patient did he hardly ever mention smoking, but when he saw me as an NHS patient he wanted nothing else, he just winked at me as if I already knew the answer .. I don’t

  30. //Euro is literally killing people back in Slovakia,//

    Actually, the Slovak economy has greatly improved, according to the usual indicators, since the country joined the Euro. Growth is on a constant rise (for many years the largest growth in the EU), as is foreign investment, while unemployment has fallen.
    There are still a lot of problems, of course, not least due to the kind of crony capitalism typical for the countries of eastern Europe after the end of “communism”.

  31. Noel

    Trust me, what the ‘stats’ say and reallity is worlds apart

    I have seen those queues for bread start up again, bread is almost a price level which does not make you balk on wedensdays at Kaufland, the queues are even longer than they were in the days of full blown communism, but the again information like that you will find in any government stats

    The same goes for prescriptions funny enough, since new EU rules were forced through, free prescriptions for even diabetics have to be paid for in full, and they are far more expensive than the UK.

    Wages are still at slave level as well.

    There is and has been absolutely no benefit to Slovakia joining the Euro currency to the man and women in the street. the gap between rich and poor is even wider.

  32. *but then again information like that you will NOT find in any government stats*

    And the corruption is even more prevalent

  33. Phantom

    And no doubt the pollster ‘Andrea’ has vested ineterests..

    All I have to say about the Slovak spectator report is .. bollocks.

  34. Just read it ..

    I rest my case.

    The euro caught on quickly,” Andrea Elscheková-Matisová, the head of the European Commission Representation in Slovakia

    Andrea, earns more in a day, than a ‘citizen’ of Slovakia earns in a month.

    You can take the girl out of the Soviet union but you can’t take the Soviet union out of the girl.

  35. Phantom

    ‘Andrea’ fails to mention the tens of thousands of ‘Citizen Slovaks’ who find it far cheaper to cross the border into the Czech Republic (Brno) is the closest city, to buy everyday items ( and fuel ) far cheaper than in theie own adopted beloved Euro currency country .. why would that be, and why does Andrea on I guess over 100,000 Euro’s a year fail to report that fact.

    She is paid to not say it.

  36. Fuel before the beloved Euro came into Slovakia wirked out at about 37 pence a litre, and that reflected the slave wages, soon enough fuel was an average of one Euro 54 cents a litre, or 3 and half times what it was, wages are still the ame though, no matter what the EU drones propaganda rubbish says about the so called EU ‘minimum wage’

    The Roma earn about 30 cents (thats about 19 pence an hour) and that’s for hard labour, and some Slovak citizens earn a bit more, about 40 to 50 cents an hour.

    Anything the EU propaganda machine tells you is an absolute lie.

    My wife was a nurse there and earned 350 Euros …. a month, and all for working on a childrens Leukemia ward.

  37. 5th post in a row ..

    If the Euro is such a great success, and is so wonderful and ,loved by Eastern Europeans, why are so many coming to the UK?

    Maybe ‘Andrea’ the EU Kommisar earning a small fortune in Euros could answer that one.

  38. Harri, what nurses earn is, unfortunately, not indicative of a country’s economic..er.. health, nor are the earnings of the Roma.

    All the statistics show that the Svk. economy has seen vast improvements over the past 8 or so years. Above all unemployment has been halved, and the standard of living has risen.
    In know that in its cousin Slovenia you can see huge differences in wealth, with some real destitution of a kind that didn’t exist before. There is also huge prosperity, and in general the people are on average much better off in material terms.
    A close friend is a Slovak, who happens to be an economist, and she paints a very different picture of her country.

  39. Harri

    I am not saying that the Euro was good for Slovakia

    From my limited knowledge base, I think that the UK was pretty smart to stay out, and a good few other countries should have stayed out also.

    But despite the huge problems of the past years, the thing remains surprisingly popular, and not just in Germany and France.

    The UK is rich compared to Eastern Europe, and this would have been so regardless of whether these countries joined the Euro or not.

  40. //If the Euro is such a great success, and is so wonderful and ,loved by Eastern Europeans, why are so many coming to the UK?//

    The big movements of people are all from non-Euro countries. Naturally they go to the developed parts of western and northern Europe – both Euro and non-Euro countries.
    In fact – you won’t hear this so often on ATW – there are more EU non-native nationals living in Germany, France and even Spain than in the UK.
    There is also an unusually high number of UK nationals living in other EU countries, so the net immigration effect is much lower.

  41. Noel

    With all resect you freind is an Economist, she would be hard pressed to convince most if not all the Slovak pople I have ever met, but point taken.

    Phantom,

    Why the sudden interest in health issues?

    I hope and trust you have not had any bad health news concerning yourself or close one.

  42. Harri

    I am only asking ( if I get too nosy, let me know ) because some here, who don’t use the NHS, thank you very much, have nothing but the most extreme criticism of it.

    I have noticed that those who actually use it here seem to have fewer complaints.

    The NHS ( Communist Slaughterhouses ) and Obamacare ( Tyranny! Death Panels! ) will remain popular topics here forever.

    I remain healthy as a horse , knock wood.

  43. I remain healthy as a horse , knock wood.

    A Stallion no doubt 😉

    Point taken about the NHS, but if I do have any issues with NHS treatment, it has to be Dental services.

    Apart from a filling and extraction, everything else appears to be now classed as ‘Cosmetic’ and costs a small fortune.

    I had all my teeth crowned two years ago, now that I should have had carried out in Slovakia, the cost was horrific as it was painful.. I am talking many thousands here.

  44. I am talking many thousands here

    That is indeed a crazy amount to pay. I have friends who went to Hungary and got extensive dental work done very cheaply and to a standard they all seemed very happy with.

  45. That is indeed a crazy amount to pay. I have friends who went to Hungary and got extensive dental work done very cheaply and to a standard they all seemed very happy with.

    It was £7000 to be precise Petr, and although I was very happy with the standard of work carried out at first, I am now starting to have a few problems, and you are absolutely correct, I have a friend and a colleague who had work carried out in Hungary (cosmetic work) and the standard I have to say is superior to mine, and the quality of the Crowns is also far superior.

  46. Petr

    The cost of the same work in Hungary a tad under £1500, and that included the flights and hotels.

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