The funny part is at the bottom. "THE POUND ROSE." Whhhaaaaat???? Does that make any sort of sense?? I'd have thought that could only happen if dollars were being counterfeited too - at an even faster rate than pounds.
Oh. Wait. They probably are.
BOE Adds 50 Billion Pounds to Stimulus on ‘Weak Outlook’
By Svenja O’Donnell - Feb 9, 2012 7:08 AM ET
Bloomberg.com
Bank of England officials pumped another 50 billion pounds ($79 billion) into the U.K. economy to protect a nascent recovery from the threat posed by Europe’s debt crisis.
The nine-member Monetary Policy Committee raised the target for bond purchases to 325 billion pounds, more than a quarter of current outstanding gilts, according to a statement in London today. The increase was forecast by 34 of 50 economists in a Bloomberg News survey. Fifteen economists forecast a 75 billion- pound increase and one no change. The MPC also held its benchmark interest rate at a record-low 0.5 percent.
“A gradual strengthening of output growth later this year should be supported by a gentle recovery in household real incomes as inflation falls, together with the continued stimulus from monetary policy,” the central bank said. “But the drag from tight credit conditions and the fiscal consolidation together present a headwind. The correspondingly weak outlook for near-term output growth means that a significant margin of economic slack is likely to persist.”
The stimulus expansion suggests policy makers remain concerned that Europe’s failure to stem its debt turmoil poses a risk to Britain. While U.K. services, manufacturing and construction all showed growth in January, the government’s budget squeeze and rising unemployment are acting as a drag on growth and officials forecast that inflation will slow to below their 2 percent target by the end of this year.
Pound Rises
The pound rose after the announcement, and traded at $1.5853 as of 12:04 p.m. in London, up 0.2 percent from yesterday.
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More: http://www.bloomberg.com/news/2012-02-09/boe-adds-50-billion-pounds-to-stimulus.html
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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