Tomorrow?, page-59

HI Timber and all,

I agree so far to date there is little evidence of runaway inflation.

In your opinion at some point in the future do you think there will be absolutely no bad consequences as a result of QE?

Personally I can’t see things improving until this money is applied to industry employing people and manufacturing tangible goods much the same way as it has been done since the onset of the industrial revolution.

My fears are that if we continue with QE and other schemes instead of addressing the real problems people will just naturally feel this is the new (easy) normal way and forget about doing the heavy lifting and living within their means (personal, business and government.)

The same reason in the national parks you see signs asking you not to feed the animals as they can become dependent on the hand outs and forget their natural foraging habits.

“Since 2009, the Bank of England’s balance sheet has quadrupled, and now a third of all government bonds are now held by Bank of England. The programme fears this is storing up future inflation and a possible loss of confidence in the bond market.”

http://www.economicshelp.org/blog/9356/monetary-policy/quantitative-easing-risks-vs-benefits/


Cheers and very best regards: Andy