Thursday, June 03, 2010

Money made worthless!

This blog has been stating the obvious regarding Quantitative Easing for so long it became pointless, for example here, so it is somewhat gratifying to see the supposed expert financial journals at last cottoning on to what is soon to occur, for example FT Alphaville this morning carrying a study by Morgan Stanley suggesting Central Banks will be the next to go bust, thus leaving money worthless, just as forecast over the years on Ironies and Ironies Too. Read the report from here. One quote from Morgan Stanley is this: Yes, central banks can extend unlimited amounts of credit to banks and governments. But they do so by issuing ever more of their own liabilities – money. And just as the trust in banks’ and governments’ liabilities eroded when they issued ever more, we believe that the trust in money will erode if central banks issue ever more of it. And who do they expect to be hit first? Yes you guessed it the poor old UK! No wonder BoE Governor, Mervyn King, is today reported to have refused a fifteen thousand pound salary increase! What use fake pounds sterling when finals day tickets in the Royal Box at Wimbledon come with the job? (Update - since posting this earlier I have just read this post on Samizdata, complex but seeming to draw the same conclusions). Also again thanks to Samizdata for the following

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