FT Alphaville » Gilt markets calm as QE halted.
Britain’s government bond markets remained calm on Thursday even as the Bank of England held interest rates and suspended its 11-month old programme of quantitative easing. Investors brushed aside earlier fears that the Bank’s decision to keep rates at 0.5% and hold the creation of money at £200bn would put upward pressure on gilt yields, and ten-year government bond yields fell after briefly rising on the noon announcement.
As I expected, but others did not.
The obvious truths are:
a) The UK can afford its debt
b) The UK has been reasonably well managed through the economy
c) Markets are calm as the prospect of a Conservative administration recedes , keeping open the prospect of continuing necessary support for the economy when needed
That's why they were calm.
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Are you being paid a retainer by HM Treasury all of a sudden?
The Girrl
Never have been
Richard
Richard
Not sure that the market agrees with you. The bottom’s dropping out of the pound today.
Richard:
There is on the face some contradiction between your posts.
In one, you imply that without QE, the country is headed for double-dip
http://www.taxresearch.org.uk/Blog/2010/02/04/queasing-on-hold/
A few hours later, in this post, everything is fine. The UK is well managed, no need for QE.
Time to make up your mind?
eg
No contradiction at all
You simply fail to understand nuance in your terribly black and white world
It’s well managed because QE was not abandoned, just put on hold until needed
The idea that the markets are calm as the Conservative lead drops is absurd. What the markets fear most is a hung parliament, with a 6 month period of no authoritative government.
Coupled with rising inflation, a collapsing currency and europe wind contagion in the bond markets, I suspect 2010 will not be pleasant. We are in the calm before a very nasty and unpredictable storm, in my opinion.
And if I was a Tory I would be aiming for a hung parliament followed by a landslide in the rerun next winter. There may well be major social unrest after the summer – a May election is not a good one to win.
If the Tories get a hung parliament they’ll lose the re-run
Richard, c’mon. It is not like you have never contradicted yourself before.
This one is on your Treasury Sec. Darling:
Dec. 15: I am impressed with Darling….
http://www.taxresearch.org.uk/Blog/2009/12/15/good-man/
Jan. 19: If, by chance, they [Labour] win an election he [Darling] will have to be moved.
http://www.taxresearch.org.uk/Blog/2010/01/19/darling-sharpens-axe-on-spending/
Was there anything special in the Christmas turkey’s stuffing?
@Ted B.
I admire your hanging on my every word
It’s a shame your power of analysis falls so far short of your dedication
And that your understanding of human nature is lacking
I say on occasion that I admire Alistair Darling, because I do
I criticise him sometimes, because he has made serious errors
It shows I am saying he is human.
It also proves:
a) I am consistent with my principles – saying when others ado and do not act in accordance with them
b) I am not bound by a party line
c) I am a free thinker, acting on principles to which I will adhere without fear
d) I am therefore worth reading
In other words – I am ethical, consistent, reliable and honest
If that’s the charge you’re levying against me I happily pleas guilty
But it’s you who looks like the pedant and the fool by trying to bring it
That makes you look rather like the owner of a soccer franchise; praise your coach in December and then sack him in January.
For the good of the country I hope you stick to blogging and stay away from actual policy-making.
And, yes, your blog is worth reading; sometimes for your ideas, often for the entertainment value.
TGB
@Ted B.
“For the good of the country I hope you stick to blogging and stay away from actual policy-making.”
Don’t worry – as far as I know as yet I’m not standing in the general election
But I think you’ll find an increasing amount of policy is based on my thinking
So bad luck