Re: Re: Conference in Madrid with Spain’s head of Housing

#108924
Chopera
Participant

@logan wrote:

Chopera.
I think that the money created by QE has not actually entered the broad money supply. That’s the reason it’s not yet had any impact on inflation. QE is designed simply to keep UK bonds yields low enough for the treasury to balance the budget and see it through the crisis.
I agree with Ardun in that hyperinflation is waiting around the corner, particularly in US and UK once the crisis stabilises.
Counter measures may well not be enough. However personally I look forward to it. Asset values will increase and so will capital returns. Debt will devalue substantially. The true value of assets of course will then depend which currency they are in.
Maybe then we can all return to some capital growth. I wish. 🙄

When things pick up the BoE says it will start selling all the debt it is currently holding back onto the market, and then destroy the money it receives for it, therefore removing it from the system. I guess we’ll have to wait and see if that’s what really happens. I’m not sure what people mean by hyper-inflation. I don’t consider say 20% to be hyper-inflation, that’s just high inflation and while not desirable, is perfectly manageable. I consider hyperinflation to occur when there is a complete loss of confidence in a particular currency, and prices in that currency start doubling every month. This scenario must be avoided at all costs.