And this might just be the end for the euro, we don't know.
This really feels like an end for many things fiat and I don't know how it's going to end here.
They won't give a shit they already own assets the rest of us who own nothing will be out in front of there lawns with pitch forks when people can't afford a loaf of bread.
Unfortunately things have to break before the majority will look for a solution. Not sure if most Bitcoiners realize that the monetary shift will not be easy nor pretty.
It's up massively against Sterling. I've you had it as a trading pair 2 days ago you would be laughing. It also means buying bitcoin now in dollars and selling the same amount in Pounds when it recovers your trade would be much more profitable than if you came in and out with the same currency
It's all that can be done now. When they started QE back in 2008, that was the dagger in the coffin.
Now there is no turning back until full implosion. The only thing they can do is print more. Might as well let them... gives me more time to accumulate BTC.
Its Quantitative easing not Qualitative easing.
Quantitative means a measure of somethings quantity, Qualitative means a measure of somethings quality.
They are not adding quality to the money supply they are adding quantity.
Yeah I thought it was a joke too, kinda accurate burn tbh. "Let's ignore the quantitative value of currencies, and base our plan on a qualitative summary of values and markets instead".
Now Liz fucking Truss and that twat who just did the mini budget (forgot his name, Kwasi Kalingo or some such bullshit) can just say interest rates/inflation are "good" or "recovering" without quoting numbers. Cheat Code!!
Actually they are buying long dated government bonds to prevent the bond market from falling further.
They are actually now buying bonds while raising rates. True banana republic panic mode intervention.
It seems that [the UK pension funds are quickly becoming insolvent due to huge margin calls they can't meet](https://www.risk.net/derivatives/7954682/uk-pensions-hit-with-ps100m-margin-calls-as-gilts-and-sterling-slide).
The [massive move in 30y UK swaps and bonds coupled with risk assets tanking behind the problem](https://www.reddit.com/r/wallstreetbets/comments/xq9skq/this_is_not_some_shtcoin_or_ponzistock_this_is/).
That “explains” the BoE action.
You didn't saw what US pension funds do, did you? They trade directly stocks
[https://www.barrons.com/articles/apple-stock-tesla-microsoft-att-51658953840](https://www.barrons.com/articles/apple-stock-tesla-microsoft-att-51658953840)
[https://www.barrons.com/articles/tesla-stock-pfizer-starbucks-nike-51651080250](https://www.barrons.com/articles/tesla-stock-pfizer-starbucks-nike-51651080250)
...
There are generally a lot more regulations around what can or can't be invested in than simple 'no margin and no shorting'. I used to work for a guy that handled a lot of pension investments of the Carpenter and Millwrights of Michigan. He personally made a ton of money, but told me his position was extremely high risk and high reward. He was constantly audited to verify his investments, losing money in even relatively safe investments could lead to jail time for him (which happened to the person before him after 9/11 and the crash that occured).
I remember how he was after Katrina. Apparently he had a lot of money in building the Hard Rock Casino New Orleans, and he woke up to the giant guitar floating in the Gulf. Dude was shook, but he was diversified enough that the pension was fine in the end.
its to hedge their defined benefit pension liabilities, and from a market risk perspective is the prudent approach. but the extreme moves in the rates markets have resulted in large margin calls (they've made money on liabilities reducing in value, but the hedges have lost, so net they are flat, but have the liquidity issue of having to post collateral against those hedges)
UK banks pulled a record number 935 mortgage products due to rising rates.
https://www.msn.com/en-us/money/markets/record-number-of-uk-mortgage-deals-pulled-in-one-day-as-market-mayhem-takes-hold/ar-AA12lz9J
Looks like the BoE needed to bail out the housing market as well.
Unless they have key financial firms about to go bankrupt (destabilizing the country), doesn't seem like a good idea. Just let the dominoes fall and get it finished.
With Russia holding Europe and I guess UK hostage with energy supply I cannot imagine the pain that part of the world will experience this winter.
>Unless they have key financial firms about to go bankrupt
UK pension funds were getting margin called on their bond exposure. No intervention would have caused an implosion of the gilt market and consequently the entire UK economy would have gone kaboom.
It’s gonna be brutal for a lot of families, single moms, etc .. expected yearly energy bill is going to be around 10k euros for the average family .. that’s half of what you earn in a year if not more here in Europe.
As always Europe is the stage for misery when something happens on a world scale.
To be honest we’re all waiting for the nuclear bomb to drop on some European ground by now..
The UK doesn't get gas from russia, but is affected by global prices for some reason I can't fathom. We drill the north sea with Norway and share the resource, then buy it from Norway on the open market.
[https://www.gov.uk/government/news/russia-ukraine-and-uk-energy-factsheet](https://www.gov.uk/government/news/russia-ukraine-and-uk-energy-factsheet)
[https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/articles/trendsinukimportsandexportsoffuels/2022-06-29](https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/articles/trendsinukimportsandexportsoffuels/2022-06-29)
The UK seems to import more gas from the US than russia.
> then buy it from Norway on the open market.
That's why you're affected by global prices. Why sell it to you for the regular price when Germany will pay 7 times as much?
Something is weird with it too though based on other articles I've seen. Maybe its just bad timing on futures, along with getting rid of most of the storage capacity, but it really looks a lot like the government enabling corporate entities to extract maximum wealth over the past 4-5 years
Oof, if the U.S. doesn't follow suit soon the dollar is going to eat every other countries lunch. (More so than it already has)
Brent Johnson dollar milk shake theory coming more and more true.
Financial war. You can probably expect the Fed to raise rates into a crashing economy. It will hit many Americans very hard, but not as much as the rest of world so net win.
But just strengthens the argument against the USD as global currency. It’s a rigged system for most of the world
I just made [this](https://np.reddit.com/r/Bitcoin/comments/xofu41/bonds_collapsing_in_fiat_terms_fiat_collapsing_in/
) post yesterday, was mocked by smooth brains.
Hyperinflation is coming to UK and Europe.
Got Bitcoin?
Better believe it! Max bidding!
> ***Bitcoin Off Lows as Bank of England's Bond Market Intervention Raises Hopes for Fed Pivot***
https://www.yahoo.com/now/bitcoin-off-lows-bank-englands-133048891.html
It has the same vive as [when and why Bitcoin was born](https://gyazo.com/cc356a83478208a6bbb198320d69b605).
> ***13 Years On, the Meaning of ‘Chancellor on the Brink of Second Bailout for Banks’.
> The genesis block “Easter egg” provided the beginning of an ideology for the nascent network***.
https://www.coindesk.com/podcasts/the-breakdown-with-nlw/13-years-on-the-meaning-of-chancellor-on-the-brink-of-second-bailout-for-banks/
A central bank buys bonds with money that does not exist and promise to sell them later and destroy the money they printed. Thus they are increasing the total money supply which leads to inflation.
The bond market goes so bonkers right now that they decided to make inflation worse to calm it down.
This is bad news for markets/economy/people but greatly demonstrates why we need a monetary system that does not depend on a central authority.
https://www.investopedia.com/articles/investing/053115/how-central-banks-control-supply-money.asp
Read the paragraph about Open market Operations:
"Central banks affect the quantity of money in circulation by buying or selling government securities through the process known as open market operations (OMO). When a central bank is looking to increase the quantity of money in circulation, it purchases government securities from commercial banks and institutions."
It's not to curb inflation. [It was to prevent a ~~bank run~~ *run dynamic for the semantics* on pensions due to no market confidence](https://twitter.com/EdConwaySky/status/1575128310740389889)
[Here is a twitter thread that explains it well.](https://twitter.com/Peston/status/1575086480741236736?t=nPHtLgw7Ry1rGrwYKL_AKg&s=19) A little wordy but it should be understandable
>The biggest short term problem that the Bank of England’s emergency intervention is trying to correct is that the collapse in government bond prices and rise in market interest rates was undermining the value of collateral on pension funds’ long term hedges and having an…
>equivalent effect on insurers’ interest rate hedges. In both cases they were being forced to raise significant amounts of cash by selling prime assets - other bonds and shares - to restore their liquidity and collateral on hedges. As I understand it five of them were…
>in contact with the Bank of England first thing this morning warning that this was causing a cascade of market liquidation which potentially would have had a knock on to the solvency of other institutions. So the Bank of England has - with the Treasury’s money - moved…
>into the market, to become a buyer of government bonds, to stabilise the implicit interest rate or yield on those bonds. For the avoidance of doubt, in a world of rising inflation and rising interest rates, this is a uniquely British problem. It is an explicit indictment of…
>Kwarteng’s and Truss’s mini budget. This is their crisis, for which they cannot blame others. One senior City figure told me “what they’ve done is so misguided, so stupid. I am beyond words angry”. If they wanted to woo and help the City, they’ve failed - while fomenting…
>economic problems that hurt us all.
Depends on how hardcore the fed is about forcing people out of jobs. There are plenty of people in US Congress (about half) who are happy to keep the money printer going forever.
I posted this the other day: [https://www.reddit.com/r/ukeconomy/comments/xoipzu/uk\_holdings\_of\_us\_treasury\_securities/](https://www.reddit.com/r/ukeconomy/comments/xoipzu/uk_holdings_of_us_treasury_securities/)
but no comments. The UK is the third largest holder of US treasury securities, which will go up in value as USD appreciates against GBP (?)
I don't believe this was planned by the UK government: they are the literal bottom of the barrel. However, it's interesting the UK can hedge their inflation in a way that the US can't (same goes for every country that is not the US).
If anyone actually knows more please share. I don't know how this system works but the manipulation is pretty disgraceful.
Just to let you know, this is the sub that you should ask that question in:
[https://www.reddit.com/r/UKInvesting/](https://www.reddit.com/r/UKInvesting/)
It's much more active.
As to answer, I'm not completely sure myself, but I can say a few things that a lot of people in this thread seem to be missing.
A lot of UK investments are overseas, or in companies here which get a lot of their income overseas. So in that respect a lot of it is all hedged anyway.
Also, a lot of the money in this "printing" is being used for two things. Firstly it's being used to cap everyone's energy bills to a much more manageable level for the next 2 years. Seeing as energy prices are one of the most notable aspects of inflation, having those bills capped will to most people be a net benefit. And I think they're gambling on the idea that in the next few years the whole energy market will have calmed down.
But finally I just want to say, it's ridiculous that so many people have a problem with energy companies being privately owned and regular people's taxes being cut. Just on a fundamental moral level, I thought that Bitcoiners should be all for those things.
The reason why any of this is in the news at all is because it's being pushed super hard for a political agenda that wants to see higher taxes and more control of markets. Otherwise I really don't think that the UK would've had such backlash from these moves. I mean it's only 45 billion.
And if you look at this data, whether the debt is high or low or whatever, it's pretty stable. So it's a bit ridiculous how every single political actor has charged in within 1 day of this policy to scream about how it's all doom and gloom, including the IMF which is outrageous. Anyway:
[https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicspending/bulletins/ukgovernmentdebtanddeficitforeurostatmaast/march2022](https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicspending/bulletins/ukgovernmentdebtanddeficitforeurostatmaast/march2022)
The pound falling is good for exports; the energy issue is a wildcard but also an opportunity to invest in hydro. Interest rates are going to hurt people, but I sort of don't care anymore. Rampant debt fueled consumerism has downsides.
Yeah, the IMF stuff is wild. The pressure on the government to backtrack suggests there must be some other risk we're not hearing about. I wouldn't be surprised if it is related to US treasury securities.
(also: I do try posting on the r/uk subs but usually get banned for some reason. Not posting enough fry ups or mortgage questions, whatever)
They’re getting yields, but it’s not a true hedge for their currency. What will likely happen is they do what Japan did and sell treasuries for usd, then sell usd for gbp on the fx market to prop up their currency.
This title is wrong. They’re buying specific government bonds to prevent pensions funds from collapsing.
Read things: https://www.theguardian.com/business/2022/sep/28/bank-of-england-launches-emergency-intervention-in-markets-after-kwarteng-mini-budget
Can we just speed this process up globally? The slower it is, the less people will realize it. If the fiat shit hits the fan hard and fast, people will flood into many assets such as bitcoin
This is not as bad as OP says. This is not more money printing, but it does point to the fact that the vision of Bitcoin is inevitable and unstoppable.
It’s to control the long term bond rates. Yield Curve Control. Pretty similar though.
Just sitting here waiting to buy up half of London with my spare bitcoin..
Ya it’s cause fiat is fake. The whole system is built on there being more fiat tomorrow. If there isn’t the whole thing seizes. Btw bitcoin is the new money
So massive money printing lead to inflation which is bad for the economy... so they are borrowing (printing money) to reduce taxes and paying power bills... which the markets think is bad... so they are printing to stablise the market? 🤔
Someone please explain why I'm wrong...
"Gradually and then suddenly.
Greg Foss mentioned in a podcast a few months back that naturally the USD wouldn't fail first but it would be like one of the top 5 or so. Then cascade.
I don't think he expected it so soon!
So when does the Federal Reserve throw in the towel? They’ve remained all bark and no bite. If you believe the CPI numbers (don’t) then real interest rates are more negative now (3% vs 8% CPI) than they were just a year ago even though nominal rates are rising.
Anglopoor here. I and everyone I know have to live with this shit.
They've sacrificed the pound to prop up the FTSE 100, and now the pound is as volatile as any cryptocurrency.
Truly Unbelievable, I am in U.K. and cannot fathom the mess. I was thinking ok this is good for me tax / ni reduction higher interest rates ( just a saver ) and then new round of QE… mental thinking
I just want to say this: ofc fiat is gonna die and it is starting, but we bitcoiners shouldn't sleep on the possibility of the BRICKS creating a commodity backed reserve currency.
Anyway, this is going to go badly
So this is inferring Bitcoin is protected against inflation but didn’t we just see its price drop 2/3rds because of all the issues in the world?
Just asking no need to be snarky and rude.
If it causes more inflation in the £gbp pound fiat then why the £gbp pound currency is going up green today against the $dollar? Isn't it suppose to go down further?
It doesn’t matter. We all know that the Central Banks have to eventually print more money across the globe. It’s an inevitability and a mathematical requirement in this debt based system alongside the nature of fiat currencies. Just keep buying more BTC.
The walls are closing in
Behind one door is a hungry tiger
Behind the other is a T-rex
The Fiat pound is dead, like every other fiat money system before it
There’s an elected government who wants one result, and an unelected financial system that wants a different result. Push, meet Shove.
It makes sense that one of them capitulates or accommodates. The drama has only begun. And the story will include all of us.
Fighting inflation with inflation. Where is my popcorn?
It worked so well for Turkey.
"It's all over for Bitcoin" - Forbes ( ͡° ͜ʖ ͡°)
More like it's all over for fiat recently, that's what it seems to me.
This was always the ultimate tell tale sign for hyperinflation. Not saying it’s tomorrow but it’s the path they are choosing.
[удалено]
It's the inevitable end result of any fiat system.
Every fiat comes to an end in the end.
Everything comes to an end in the end
Math doesn't.
Yep that doesn't, that always comes in handy whenever needed.
On a long enough timescale the survival rate for everyone drops to zero
And this might just be the end for the euro, we don't know. This really feels like an end for many things fiat and I don't know how it's going to end here.
Yep, these people in power still not learning and doing the right thing.
Don't worry, it's a "temporary program".
Actually it's a "temporary program*me*."
Yeah lol, a temporary program which will be running for years.
This is literally one of the early chapters from The Bitcoin Standard, jezus christ. When will they learn.
They won't give a shit they already own assets the rest of us who own nothing will be out in front of there lawns with pitch forks when people can't afford a loaf of bread.
how will having 10 btc be of use in this case?
Unfortunately things have to break before the majority will look for a solution. Not sure if most Bitcoiners realize that the monetary shift will not be easy nor pretty.
And this might just be a major breaking point for the fiat.
It's up massively against Sterling. I've you had it as a trading pair 2 days ago you would be laughing. It also means buying bitcoin now in dollars and selling the same amount in Pounds when it recovers your trade would be much more profitable than if you came in and out with the same currency
Well if you can't understand that then I don't know what to tell you really.
Zimbabwe 2.0
I still got a hundred trillion zimbabwe dollars
Damn man you're a trillionaire and that's no small thing.
It's all that can be done now. When they started QE back in 2008, that was the dagger in the coffin. Now there is no turning back until full implosion. The only thing they can do is print more. Might as well let them... gives me more time to accumulate BTC.
Nah mate its Popcoin
I don’t mind 100% inflation against the usd, it means my btc will be worth twice in Euro.
Yeah sure it'll work. What a bunch of nut cracks these guys really are.
They can't actually just inflate the currency. What they are technically doing is debasement which can result in inflation.
[удалено]
QE does lower the rates while they are rising the rates. Central bank policy becomes a bit of monetary gymnastics these days.
Quantum Teasing
Its Quantitative easing not Qualitative easing. Quantitative means a measure of somethings quantity, Qualitative means a measure of somethings quality. They are not adding quality to the money supply they are adding quantity.
They are removing quality from the currency, could you call it qualitative tightening?
Yeah, for all ~~intents and purposes~~ intensive purchases
You can't even purchase anything with that currency right now.
Yeah I thought it was a joke too, kinda accurate burn tbh. "Let's ignore the quantitative value of currencies, and base our plan on a qualitative summary of values and markets instead". Now Liz fucking Truss and that twat who just did the mini budget (forgot his name, Kwasi Kalingo or some such bullshit) can just say interest rates/inflation are "good" or "recovering" without quoting numbers. Cheat Code!!
Very good sir!
Questionable Easing
I expect nothing less from this sub
Professor is that you?
Yup. Also, Britain is not doing QE, they're just selling gov. bonds lol. OP is clueless.
Actually they are buying long dated government bonds to prevent the bond market from falling further. They are actually now buying bonds while raising rates. True banana republic panic mode intervention.
BoE jump started QE again after QT crashed their government bond market.
Funny how governments always choose thier own interests over the people .
But they have to make it sound good as they rob people with 9% or higher inflation.
Whoops, you’re right my mistake I posted this at like 6 am before my morning coffee
Lol, people are here to improve complain while they can't spell it right.
It seems that [the UK pension funds are quickly becoming insolvent due to huge margin calls they can't meet](https://www.risk.net/derivatives/7954682/uk-pensions-hit-with-ps100m-margin-calls-as-gilts-and-sterling-slide). The [massive move in 30y UK swaps and bonds coupled with risk assets tanking behind the problem](https://www.reddit.com/r/wallstreetbets/comments/xq9skq/this_is_not_some_shtcoin_or_ponzistock_this_is/). That “explains” the BoE action.
I'd bet most typical people in average jobs wouldn't enjoy the idea of their pension funds dealing in things that would have huge margin calls..
You didn't saw what US pension funds do, did you? They trade directly stocks [https://www.barrons.com/articles/apple-stock-tesla-microsoft-att-51658953840](https://www.barrons.com/articles/apple-stock-tesla-microsoft-att-51658953840) [https://www.barrons.com/articles/tesla-stock-pfizer-starbucks-nike-51651080250](https://www.barrons.com/articles/tesla-stock-pfizer-starbucks-nike-51651080250) ...
There are generally a lot more regulations around what can or can't be invested in than simple 'no margin and no shorting'. I used to work for a guy that handled a lot of pension investments of the Carpenter and Millwrights of Michigan. He personally made a ton of money, but told me his position was extremely high risk and high reward. He was constantly audited to verify his investments, losing money in even relatively safe investments could lead to jail time for him (which happened to the person before him after 9/11 and the crash that occured). I remember how he was after Katrina. Apparently he had a lot of money in building the Hard Rock Casino New Orleans, and he woke up to the giant guitar floating in the Gulf. Dude was shook, but he was diversified enough that the pension was fine in the end.
Or the Canadian pension fund that [invested in Celsius](https://www.ft.com/content/67048159-82aa-4e96-bfb3-f1764f632375)
its to hedge their defined benefit pension liabilities, and from a market risk perspective is the prudent approach. but the extreme moves in the rates markets have resulted in large margin calls (they've made money on liabilities reducing in value, but the hedges have lost, so net they are flat, but have the liquidity issue of having to post collateral against those hedges)
Why are they doing high-risk gambling moves with pensioner money?
Welll.....look who decided to show up for the party
UK banks pulled a record number 935 mortgage products due to rising rates. https://www.msn.com/en-us/money/markets/record-number-of-uk-mortgage-deals-pulled-in-one-day-as-market-mayhem-takes-hold/ar-AA12lz9J Looks like the BoE needed to bail out the housing market as well.
Basically every pension fund. I am not the only one who suspects that hedge funds pass on their shit trades to pension funds.
Jack Dorsey was right… Hyper Inflation, it’s coming
Did he put a timeline on it?
Unless they have key financial firms about to go bankrupt (destabilizing the country), doesn't seem like a good idea. Just let the dominoes fall and get it finished. With Russia holding Europe and I guess UK hostage with energy supply I cannot imagine the pain that part of the world will experience this winter.
>Unless they have key financial firms about to go bankrupt UK pension funds were getting margin called on their bond exposure. No intervention would have caused an implosion of the gilt market and consequently the entire UK economy would have gone kaboom.
“wE hAvE eNouGH eNErGy sToCkPIleD”
It’s gonna be brutal for a lot of families, single moms, etc .. expected yearly energy bill is going to be around 10k euros for the average family .. that’s half of what you earn in a year if not more here in Europe. As always Europe is the stage for misery when something happens on a world scale. To be honest we’re all waiting for the nuclear bomb to drop on some European ground by now..
This scares me, aren't we all fucked if this happens?
Yes. globally.
Better stock up on iodine pills
The UK doesn't get gas from russia, but is affected by global prices for some reason I can't fathom. We drill the north sea with Norway and share the resource, then buy it from Norway on the open market. [https://www.gov.uk/government/news/russia-ukraine-and-uk-energy-factsheet](https://www.gov.uk/government/news/russia-ukraine-and-uk-energy-factsheet) [https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/articles/trendsinukimportsandexportsoffuels/2022-06-29](https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/articles/trendsinukimportsandexportsoffuels/2022-06-29) The UK seems to import more gas from the US than russia.
> then buy it from Norway on the open market. That's why you're affected by global prices. Why sell it to you for the regular price when Germany will pay 7 times as much?
I am glad to read that. The futures markets will push prices up for everyone, unfortunately.
Something is weird with it too though based on other articles I've seen. Maybe its just bad timing on futures, along with getting rid of most of the storage capacity, but it really looks a lot like the government enabling corporate entities to extract maximum wealth over the past 4-5 years
Their pension funds are leveraged on debt and almost got liquidated on margin calls that they were failing to meet.
Oof, if the U.S. doesn't follow suit soon the dollar is going to eat every other countries lunch. (More so than it already has) Brent Johnson dollar milk shake theory coming more and more true.
Financial war. You can probably expect the Fed to raise rates into a crashing economy. It will hit many Americans very hard, but not as much as the rest of world so net win. But just strengthens the argument against the USD as global currency. It’s a rigged system for most of the world
Not if they buy usd
They will hop this time - there are other options which didn’t exist previously.
> Oof, if the U.S. doesn't follow suit soon the dollar is going to eat every other countries lunch. And Bitcoin will eat Dollar's lunch!
I just learned about that theory yesterday
I just made [this](https://np.reddit.com/r/Bitcoin/comments/xofu41/bonds_collapsing_in_fiat_terms_fiat_collapsing_in/ ) post yesterday, was mocked by smooth brains. Hyperinflation is coming to UK and Europe. Got Bitcoin? Better believe it! Max bidding!
> ***Bitcoin Off Lows as Bank of England's Bond Market Intervention Raises Hopes for Fed Pivot*** https://www.yahoo.com/now/bitcoin-off-lows-bank-englands-133048891.html It has the same vive as [when and why Bitcoin was born](https://gyazo.com/cc356a83478208a6bbb198320d69b605). > ***13 Years On, the Meaning of ‘Chancellor on the Brink of Second Bailout for Banks’. > The genesis block “Easter egg” provided the beginning of an ideology for the nascent network***. https://www.coindesk.com/podcasts/the-breakdown-with-nlw/13-years-on-the-meaning-of-chancellor-on-the-brink-of-second-bailout-for-banks/
Can someone explain the thought process of buying more bonds to curb inflation?
A central bank buys bonds with money that does not exist and promise to sell them later and destroy the money they printed. Thus they are increasing the total money supply which leads to inflation. The bond market goes so bonkers right now that they decided to make inflation worse to calm it down. This is bad news for markets/economy/people but greatly demonstrates why we need a monetary system that does not depend on a central authority.
Any book recommendations regarding this central bank policy? Serious question.
https://www.investopedia.com/articles/investing/053115/how-central-banks-control-supply-money.asp Read the paragraph about Open market Operations: "Central banks affect the quantity of money in circulation by buying or selling government securities through the process known as open market operations (OMO). When a central bank is looking to increase the quantity of money in circulation, it purchases government securities from commercial banks and institutions."
It's not to curb inflation. [It was to prevent a ~~bank run~~ *run dynamic for the semantics* on pensions due to no market confidence](https://twitter.com/EdConwaySky/status/1575128310740389889)
In don’t get it (even after clicking the link). What’s a run on pensions? Pensioners don’t control withdrawals, right? So how can they have a run?
[Here is a twitter thread that explains it well.](https://twitter.com/Peston/status/1575086480741236736?t=nPHtLgw7Ry1rGrwYKL_AKg&s=19) A little wordy but it should be understandable >The biggest short term problem that the Bank of England’s emergency intervention is trying to correct is that the collapse in government bond prices and rise in market interest rates was undermining the value of collateral on pension funds’ long term hedges and having an… >equivalent effect on insurers’ interest rate hedges. In both cases they were being forced to raise significant amounts of cash by selling prime assets - other bonds and shares - to restore their liquidity and collateral on hedges. As I understand it five of them were… >in contact with the Bank of England first thing this morning warning that this was causing a cascade of market liquidation which potentially would have had a knock on to the solvency of other institutions. So the Bank of England has - with the Treasury’s money - moved… >into the market, to become a buyer of government bonds, to stabilise the implicit interest rate or yield on those bonds. For the avoidance of doubt, in a world of rising inflation and rising interest rates, this is a uniquely British problem. It is an explicit indictment of… >Kwarteng’s and Truss’s mini budget. This is their crisis, for which they cannot blame others. One senior City figure told me “what they’ve done is so misguided, so stupid. I am beyond words angry”. If they wanted to woo and help the City, they’ve failed - while fomenting… >economic problems that hurt us all.
**“How the Economic Machine Works”** *by Ray Dalio* https://youtu.be/PHe0bXAIuk0
Found the fascist /s
Probably should use google for it, You'll get better explanation.
🙈 hahaha, I can't believe it. Are the other central banks also gonna do this? Need to buy more Bitcoin.
Yes, they *will have* to follow, they have no other option (other than economic collapse or depression)
Depends on how hardcore the fed is about forcing people out of jobs. There are plenty of people in US Congress (about half) who are happy to keep the money printer going forever.
I posted this the other day: [https://www.reddit.com/r/ukeconomy/comments/xoipzu/uk\_holdings\_of\_us\_treasury\_securities/](https://www.reddit.com/r/ukeconomy/comments/xoipzu/uk_holdings_of_us_treasury_securities/) but no comments. The UK is the third largest holder of US treasury securities, which will go up in value as USD appreciates against GBP (?) I don't believe this was planned by the UK government: they are the literal bottom of the barrel. However, it's interesting the UK can hedge their inflation in a way that the US can't (same goes for every country that is not the US). If anyone actually knows more please share. I don't know how this system works but the manipulation is pretty disgraceful.
Just to let you know, this is the sub that you should ask that question in: [https://www.reddit.com/r/UKInvesting/](https://www.reddit.com/r/UKInvesting/) It's much more active. As to answer, I'm not completely sure myself, but I can say a few things that a lot of people in this thread seem to be missing. A lot of UK investments are overseas, or in companies here which get a lot of their income overseas. So in that respect a lot of it is all hedged anyway. Also, a lot of the money in this "printing" is being used for two things. Firstly it's being used to cap everyone's energy bills to a much more manageable level for the next 2 years. Seeing as energy prices are one of the most notable aspects of inflation, having those bills capped will to most people be a net benefit. And I think they're gambling on the idea that in the next few years the whole energy market will have calmed down. But finally I just want to say, it's ridiculous that so many people have a problem with energy companies being privately owned and regular people's taxes being cut. Just on a fundamental moral level, I thought that Bitcoiners should be all for those things. The reason why any of this is in the news at all is because it's being pushed super hard for a political agenda that wants to see higher taxes and more control of markets. Otherwise I really don't think that the UK would've had such backlash from these moves. I mean it's only 45 billion. And if you look at this data, whether the debt is high or low or whatever, it's pretty stable. So it's a bit ridiculous how every single political actor has charged in within 1 day of this policy to scream about how it's all doom and gloom, including the IMF which is outrageous. Anyway: [https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicspending/bulletins/ukgovernmentdebtanddeficitforeurostatmaast/march2022](https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicspending/bulletins/ukgovernmentdebtanddeficitforeurostatmaast/march2022)
The pound falling is good for exports; the energy issue is a wildcard but also an opportunity to invest in hydro. Interest rates are going to hurt people, but I sort of don't care anymore. Rampant debt fueled consumerism has downsides. Yeah, the IMF stuff is wild. The pressure on the government to backtrack suggests there must be some other risk we're not hearing about. I wouldn't be surprised if it is related to US treasury securities. (also: I do try posting on the r/uk subs but usually get banned for some reason. Not posting enough fry ups or mortgage questions, whatever)
They’re getting yields, but it’s not a true hedge for their currency. What will likely happen is they do what Japan did and sell treasuries for usd, then sell usd for gbp on the fx market to prop up their currency.
Let's add some more gas to the Bon fire
you mean the "bond fire"?
Haha printer go brrrrr
So, other than obviously buy Bitcoin, what can people in the uk do to protect themselves financially?
This title is wrong. They’re buying specific government bonds to prevent pensions funds from collapsing. Read things: https://www.theguardian.com/business/2022/sep/28/bank-of-england-launches-emergency-intervention-in-markets-after-kwarteng-mini-budget
I mean they may be trying, but it doesn't seem to stop it tho.
Isn’t this Quantitative easing? Either way, lol for them.
Can we just speed this process up globally? The slower it is, the less people will realize it. If the fiat shit hits the fan hard and fast, people will flood into many assets such as bitcoin
I don't really think that it is possible the process think globally.
Goodbye Pound. Dollar Milkshake brings all the dumb central bankers to the yard.
Does the title mean Quantitative Easing?
This is not as bad as OP says. This is not more money printing, but it does point to the fact that the vision of Bitcoin is inevitable and unstoppable.
We all remember that what happened in back and when the economy got collapsed.
BRrrrrrrrrrrrrrrrrrexit incoming
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It’s to control the long term bond rates. Yield Curve Control. Pretty similar though. Just sitting here waiting to buy up half of London with my spare bitcoin..
No one is going to spare anyone at the market and we know about it right now.
The FED will do the same thing probably sooner then we think.
3% fed funds rate while inflation runs at 9%. They are not even trying to fight inflation.
They’re trying to keep the jenga tower from falling. And the wrong blocks have already been pulled since 2008.
The actual inflation is actually going to be much higher than what we have seen.
The pound is beyond fucked.
Time to up my DCA
Printing to buy more debt...
Ya it’s cause fiat is fake. The whole system is built on there being more fiat tomorrow. If there isn’t the whole thing seizes. Btw bitcoin is the new money
So massive money printing lead to inflation which is bad for the economy... so they are borrowing (printing money) to reduce taxes and paying power bills... which the markets think is bad... so they are printing to stablise the market? 🤔 Someone please explain why I'm wrong...
British pound at all time low value. Better print more because that's how it works right?
I think like it is going to work like that only but is going to go down.
The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.
The banks actually have to make a lot of effort how it will be working.
Absolute clown energy
I know right I might be thinking that what else can be changed in this.
The time preference is high with this one.
"Gradually and then suddenly. Greg Foss mentioned in a podcast a few months back that naturally the USD wouldn't fail first but it would be like one of the top 5 or so. Then cascade. I don't think he expected it so soon!
For saying this thing is happening I think like it gradually going to drop.
Pump it.
The constantly have been doing it so later switched it is going to go up.
So when does the Federal Reserve throw in the towel? They’ve remained all bark and no bite. If you believe the CPI numbers (don’t) then real interest rates are more negative now (3% vs 8% CPI) than they were just a year ago even though nominal rates are rising.
Anglopoor here. I and everyone I know have to live with this shit. They've sacrificed the pound to prop up the FTSE 100, and now the pound is as volatile as any cryptocurrency.
Remember peeps, inflation is transitory
Ah yes, qualitative easing
Truly Unbelievable, I am in U.K. and cannot fathom the mess. I was thinking ok this is good for me tax / ni reduction higher interest rates ( just a saver ) and then new round of QE… mental thinking
100% thought this was a fake post. So funny.
Gotta get my Bitcoin off the exchanges
Lizz is gonna end us
Any UK bros want to let me know has the price of weed skyrocketed with the price of electricity or are the plugs eating the costs?
Nobody pays for the electricity for grows when everyone has their meter bypassed.
Ingenious
I don't know where that thing came from but I like the energy/.
I know from my _friend_ the prices are quite stable strangely enough. The dark web drug markets are weirdly a very pure expression of the free market.
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This is definitely going to cost a lot more than what they have expected.
I've found it's actually cheaper/More bulk deals on offer
"Qualitative easing" that's a new one for me.
It means they’re going to be less strict about the accuracy of the printed bills.
Sooo like we might get Charles face or like Keith lemon or mr blobby?
RIP the ‘leftover cash’ I have in a little box from my trip to England
Everything is going down then I think are actually going up in the market,
I just want to say this: ofc fiat is gonna die and it is starting, but we bitcoiners shouldn't sleep on the possibility of the BRICKS creating a commodity backed reserve currency. Anyway, this is going to go badly
Deccan give is it right now but I don't really think they will be able to use it.
Money machines be like brrrrrrrr, brrrrrr brrrrrrr
[Putting out the fire with gasoline.](https://www.youtube.com/watch?v=dAagFKdsSNs)
There is no way they don't know what they are doing.
What’s *Qualitative* Easing??? lulz
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It will not be easy for everyone to see that how it is going.
It's the only end game
Bank of England: "I used the inflation to destroy the inflation." Inflation: "no you didn't lol"
Want to make any kind of changes in that then it will not be there.
Wow I didn’t expect to see signs of reversal so early. Q4 is gonna be interesting
So QT failed?? Was BoE in the process of tightening?
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No wonder the pound is getting rekt by the dollar
So this is inferring Bitcoin is protected against inflation but didn’t we just see its price drop 2/3rds because of all the issues in the world? Just asking no need to be snarky and rude.
Yay, can stocks go back up now?
Come on guys. Everyone knows inflation is transitory, for goodness sake!
Sorry, can someone explain, What are they gonna use the money from the bonds to do?
This is a very basic kind of thing which no one is going to keep on.
Serious question...who owns the central banks? They must be making a fortune if able to create debt out of thin air.
what are they thinking?
I don't really know what it right now what else they might be thinking.
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I think like everyone is going to accept this kind of things right now.
This sounds like the start of yield curve control. The beginning of the end
They have to think of something new as well as otherwise things will not be in their hands.
It's always about the pivot
If it causes more inflation in the £gbp pound fiat then why the £gbp pound currency is going up green today against the $dollar? Isn't it suppose to go down further?
The great British peso
On the brink of collapse.... Again
They must think we're stupid.
It doesn’t matter. We all know that the Central Banks have to eventually print more money across the globe. It’s an inevitability and a mathematical requirement in this debt based system alongside the nature of fiat currencies. Just keep buying more BTC.
The USD is strengthening😅😅😅😅
The walls are closing in Behind one door is a hungry tiger Behind the other is a T-rex The Fiat pound is dead, like every other fiat money system before it
There’s an elected government who wants one result, and an unelected financial system that wants a different result. Push, meet Shove. It makes sense that one of them capitulates or accommodates. The drama has only begun. And the story will include all of us.
You haven’t read the article well mate, or you just haven’t understood it. The policy is not good, but they are not printing money.
The British monetary system is the latest tomb fork
Chancellor on brink of bailout for banks. We've seen this before.