Thursday, November 05, 2009

Bank Of England ........ Doomed?

Gold bugs will look at this Bloomberg story as supporting evidence of why gold must go higher because it supports their confirmation bias. It's part of the mass hysteria in much of the financial community that central bankers are planning to hyper-inflate their way to prosperity.

The reality behind this story is substantially different. In other words, Bloomberg is often guilty of the mass hysteria or inaccurate reporting we see elsewhere. The actual rate of easing in the U.K. is slowing substantially. And the Bank of England appears to be winding down its attempts at printing money if you actually read their statements instead of media hype.

The U.K. economy has not responded well to central bank actions so far. Remember our post some weeks ago remarking the U.K. is in serious trouble and the potential for the pound to go kaput? Stick this in the back of your mind for a future post.
posted by TimingLogic at 8:46 AM