BLOG
Bank of England Authorizes Another £50 Billion in Quantitative Easing!
Bank of England Quantitative Easing
I have said over and over again that this year will be a year with an extrordinary amount of quantitative easing and government stimulus. As a result of this it will be one of the best years for gold and silver to date. Today, the Bank of England unrolled another round of quantitative easing amounting to £50 Billion. This brings the total amount of quantitative easing put out by the Bank of England at £325 Billion since March of 2009.
The Effect of Quantitative Easing
The only possible result of such action is continued inflation. In fact, research from a financial services company called Hargreaves Lansdown found that a 65-year-old man with £100,000 could have bought a level income of £7,855 in July 2008, but someone in the same situation today would only receive an income of £5,923, a drop of just under 25pc.
More Federal Reserve Quantitative Easing?
England is beginning to see the practical impact of an inflationary monetary policy and it is not looking pretty. These monetary policies are especially harmful for retires who have static incomes and have no way of fighting against the inflationary forces that hack away at the real value of their income. Ironically, one of the reasons the Bank of England has launched this new round of QE is because of fear that inflation will fall below the Bank of England’s target inflation rate of 2%. It was just two weeks ago that Federal Reserve Chairman Ben Bernanke came out and said that the Fed would now establish a target inflation rate of 2%. This move by the Federal Reserve is setting themselves up for the next round of QE. Many economists fully expect to hear about a new round of QE before the end of the summer.
