Evaluating the effect of Quantitative Easing

(1) The effect of QE on savers is examined here in this excellent video and studio discussion led by Faisal Islam, the Economics Correspondent at Channel 4 news. Those households that don’t borrow are less interested in sustained low interest rates. One significant effect of QE and the decision to keep the base rate at 0.5% is to effectively eliminate the returns to saving. Is the policy worthwhile?

Quantitative Easing is destroying UK economy and savers (09 Feb 12)

The criminals in the Bank of England are destroying savers to bailout feckless borrowers – including the government itself. When the good money runs out / turned to bad money, there will be nothing left of the economy because the greedy feckless borrowers would have trashed it all to save their necks.

This is part of the biggest financial crime in the history of planet Earth, and the government and Bank of England are in on it.

Recorded from Channel 4 News, 09 February 2012.

(2) What is Quantitative Easing?
Normally central banks, such as the Bank of England or US Federal Reserve, cut interest rates when they want to help the economy out.

But what about when interest rates hit rock bottom? Then they have to resort to a new, and untested, kind of policy called “quantitative easing”.

The BBC’s economics editor, Stephanie Flanders, explains (Video).


About benvitalis

math grad - Interest: Number theory
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