[mattduke]

The Bank of England will be able to print extra money without having legally to declare it under new plans which will heighten fears that the Government will secretly pump extra cash into the economy.

The Government is set to throw out the 165-year old law that obliges the Bank to publish a weekly account of its balance sheet – a move that will allow it theoretically to embark covertly on so-called quantitative easing. The Banking Bill, which is currently passing through Parliament, abolishes a key section of the law laid down by Robert Peel's Government in 1844 which originally granted the Bank the sole right to print UK money.

telegraph

In other news from the same site, "the rich are turning to gold bars":

telegraph

[misterno]

US dollar, Euro or Sterling will never lose value due to too much printing but rather lose value from investors losing confidence.

Look at US dollar, the world is flush with paper and dollar still holds value like there is no inflation.

[BlueGhostNo2]

Thank you for the link.

Altho the telegraph is generally abit dodgy on stories about laws which aren't passed yet they don't as a rule make facts up.

If the government is trying to do this, it is _terrifying_

The UK Gov has totally under estimated the size of the recession, they don't fully report all the liabilities (pensions, PFI's etc) and we do not have any really resilient industry for the coming excitement.

[pedalling_faster]

In other news from the same site, "the rich are turning to gold bars":

telegraph

"Merrill predicted that gold would soon blast through its all time-high of $1,030 an ounce, and would hit $1,150 by June."

[Snowrunner]

Look at US dollar, the world is flush with paper and dollar still holds value like there is no inflation.

There is no inflation, we are currently in a deflationary cycle, albeit at the beginning.

Secondly, what keeps the USD afloat right now is that it is still the currency in which many international contracts are being made. These need to be settled, but there is no guarantee that new contracts are being denoted in USD, chances are they are not, and once the need goes away for people to hold onto USD to settle their contracts the USD may just go into free fall.

[EndOfGrowth]

In other news from the same site, "the rich are turning to gold bars":

telegraph

"Merrill predicted that gold would soon blast through its all time-high of $1,030 an ounce, and would hit $1,150 by June."

Gold could go much higher when it goes into permanent backwardation

[Micki]

US dollar, Euro or Sterling will never lose value due to too much printing but rather lose value from investors losing confidence.

Look at US dollar, the world is flush with paper and dollar still holds value like there is no inflation.

That is where you are totally wrong.
Inflation is not just a psycological phenomenon where prices go up or currencies because people just know that more money was printed. Prices can however react pre-mateurely as traders and investors postition themselves quickly to take advantage or hedge themselves.
What ultimately drives currency valuations is like other things, supply and demand. When more money is printed some of it will find it's way overseas. The more money that exists, the more will be available on the FX exchange.
This move then creates it's own momentum but the ultimate foundation for this is supply and demand of that currency. (And in the case of inflation it is more supply driven as the market is flooded with currency.)

Just think for a second about what you just said.
USD amongst other not losing value no matter how much is printed.... So treasury could print and buy up every single resource and asset in the world that is for sale and the currency would still be as strong.
Of course not.
As Bernanke himself said, USD only has a value as long as it is in short supply.
USD has however gone down and the down trend is despite the more recent rally not broken. WHat USD however has benefited from is the fact that most international transations are settled in USD. So when when traders and investors have been unwinding their positions they have needed USD for settlement.
Furthermore, USD hasn't inflated that great yet. Monetary base has increased (and most the money just sits on the banks balance sheets rather than being lent out and throught that finding its way to amongst other FX markets.) The inflation however begins in earnest when the money shifts hands as that is what creates velocity and throught the fractional reserve banking system a multiplication of the money supply by 6, 7 maybe 9 times.
As we have seen already should the banks not be the ones to kick off the process, it will be through quantitative easing or moneization of debt.