Thursday 9 February 2012

QE III

No no, not some new luxury cruise liner, just observing that something weird is going on when the day the Bank of England announces it is going to devalue all existing money in circulation by creating £50bn out of thin air, the financial markets celebrate by increasing the value of the pound against every other currency.

So why is that exactly? Was £50bn less than the markets expected to be created out of nothing, or is the UK creating less new money than every other nation? I have no idea.

Think I will go and buy some silver.

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