Posted on 09/28/2022 5:26:12 AM PDT by Oldeconomybuyer
News of the bank's action, aimed at "restoring orderly market conditions", had an immediate impact on the rates demanded by investors to hold UK government debt.
The Bank of England has launched a temporary bond-buying programme as it takes emergency action to prevent "material risk" to UK financial stability.
It revealed that it would buy as many long-dated government bonds as needed between now and 14th October in a bid to stabilise financial markets in the wake of the mayhem that followed the government's mini-budget last Friday.
In addition to the plunge in the value of the pound, it has also seen investors demand a greater rate of return for UK government bonds - essentially IOUs.
That is because the level of borrowing required to fund the government giveaway, including tax cuts and energy aid for households and businesses, shocked the market which immediately questioned the sustainability of the public finances.
(Excerpt) Read more at news.sky.com ...
Another few billion for Soros
Sounds like the British doing some Quantitative Easing.
Funny thing, QE also means Queen Elizabeth. Weird.
We are in the grip of madmen and lunatics.
That is a tricky maneuver because buying bonds injects cash into the economy. My guess is that even as the Bank of England is buying distressed long bonds, they are selling more short term bonds in order to sop up the new cash and avoid stoking inflation.
So they’re going to buy their own debt.
Yea. That should work.
L
For years and years, we’ve heard fiscal conservatives say we can’t keep spending money we don’t have and yet it kept happening regardless of what party is in charge.
I remember Rush Limbaugh talking about his often and how people have gotten use to deficits not mattering.
Now we are seeing the madness of this policy, how long it lasts and how massive the problem becomes remains up for debate, I’m afraid it’s going to really bad and last for a very long time.
They caved.
So will other central banks, because they coordinate pretty much everything.
Look or even more inflation to come...and an even harsher day of reckoning when they completely lose control. The coming Depression will make the Great Depression look like a tiny economic slowdown in comparison.
Note to the UK: When will you lot wake up and smell the coffee. Party means nothing. You're run by your Deep State. And you lot don't have a Trump standing between you and it.
I will never understand the strategy of buying your own debt. If I “buy” my own mortgage, all I did was declare that my front pocket is my back pocket.
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