Here are some details quoted from a JPMorgan report:
- The BoE has embarked upon the most aggressive programme of QE in the industrialized world, creating base money to finance Gilt and private asset purchases worth 10% of GDP (and with no guarantee it will stop there).
- The BoE’s asset purchase programme will likely push growth in the monetary base to 115% by May and 205% by late summer, comfortably exceeding growth in the US (93%) and Euro area (39%). The UK money base will grow nearly six times faster than it did in Japan under the BoJ’s QE policy.
- All central banks are pursuing unconventional monetary policies now but the BoE is pushing the boundaries further than others, encompassing the de facto monetisation of the fiscal deficit.
Also worth a read:
March 6 (Bloomberg) -- The British government will boost its stake in Lloyds Banking Group Plc to 75 percent in exchange for insuring 260 billion pounds ($367 billion) of toxic assets, two people familiar with the plan said.Of course, this confirms that the UK is finished and that one must be crazy to hold any GBPs. I have sold half of my GBPs last Friday, and will sell the remaining probably within a week or two. Next step is to stell GBP short in order to hedge my salary against the coming collapse.
Also note that the US$ currency base is growing at the atronomical rate of 93% and that even in the Euro area, the growth is 39%, which is a crazy crazy rate of growth... ... but this still means that the € should raise against the USD and GBP.
The mega printing of currency in all developed and developing economies is of course very bullish for precious metals and commodities.