Western central bankers are staring complete collapse of the system in the face.   Anyone who thinks they will not respond by printing to infinity is insane.  QE continues behind the scenes currently, but bold, public, MASSIVE, NEW QE will be applied in the very near future to prevent debt/ derivatives collapse contagion.


Worsening economic prospects could force the hand of the Bank’s Monetary Policy Committee, which last month voted to pause its purchase of government bonds after pumping £325bn into the market through quantitative easing.

Since then however, the data have painted a picture of a worsening, not improving outlook for the British economy, and there is no sign of a solution to the eurozone crisis.

The Office for National Statistics said the recession that began in the first quarter was deeper than it initially thought, with the economy shrinking by 0.3pc in the first three months of the year and not 0.2pc as it previously estimated.

Then on Friday the Markit/CIPS manufacturing PMI showed the sector shrank at the fastest pace in three years in May, suggesting manufacturing will be a drag on the wider economy in the second quarter.

George Buckley, economist at Deutsche Bank, said the grim manufacturing PMI survey was “a game changer”.

“Up until now we had been arguing the Bank would sanction no more QE after ending the previous programme last month. But conditions have worsened.”  The situation is now so dire that even MOPE that easing is no longer needed causes the system to disintegrate!
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  1. Right SB. The collapse would be immediate. Just a question maybe someone can answer. We all know QE worldwide is imminent. Will the PTB get together (Bilderbergs?) and do a massive QE in unison, or will it be one country at a time? If they all QE at the same time, will that panic people to large bank runs, or will it quell their panic mode?

  2. Wait, what?  50 Billion?  To stimulate?  Are you even kidding me?

    That’s as underwhelming as Dr. Evil asking for 1 million dollars in ransom money.

    Come on BOE Masters of the World!  You’re seriously disappointing me, here.  How bout 500 billion?  A trillion?  Seventeen NURPILLION Great British Pounds!

    That’ll get you on the road to happy days again!

  3. Egan Jones Downgrades The UK From AA To AA-

    Tyler Durden's picture

    Submitted by Tyler Durden on 06/04/2012 16:03 -0400

    When one is expected to go down for missing a
    comma in their NRSRO application, one at least should go down swinging.
    Sure enough, Egan-Jones, the only rating agency with any credibility
    left, is at it again, this time cutting the big momma itself – the UK –
    from AA to AA-.

    6/4/2012: United Kingdom: EJR lowered AA to AA- (Neg.) Projected A+ (S&P: AAA) (6152Z LN)

    Synopsis: On the balance of payment side, imports have exceeded
    exports by an average of approximately 500B pounds annually over the
    past several years. The major problems for the UK is that Europe’s
    banking crisis does not appear to be abating as evidenced by the
    miserable results of most EU banks.
    On the fiscal side, the deficit to
    GDP has declined over the past three years from 11.5% to 8.3%, which is a
    respectable decline, but the bulk of the reduction was the result of
    increased taxes since GDP growth was weak. READ MORE

    Egan-Jones Downgrades U.K. Amid Banking Fears

    By Matt Egan

    Published June 04, 2012


    Worried about the health of British banks, ratings company Egan-Jones
    slashed its credit rating on the United Kingdom on Monday as European
    governments continue to be pressured by the sovereign debt crisis.

    Egan-Jones, a relatively small credit rater, cut the U.K. to “AA-” from “AA” and left a “negative” outlook on the country.

    “The overriding concern is whether the country will be able to
    continue to cut its deficit in the face of weaker economic conditions
    and a possible deterioration in the country’s financial sector,” the
    report said.

    Egan-Jones noted the large scale of the U.K. banking system, which
    could leave taxpayers on the hook for future bailouts.
    The top five
    British banks have assets equal to 477% of the country’s gross domestic
    product, compared with 125% for Germany, the report said.

    “The major problem for the U.K. is that Europe’s banking crisis does
    not appear to be abating as evidenced by the miserable results of most
    [eurozone] banks,” the ratings company said.

    The move comes as the eurozone debt mess intensified last week amid
    growing concern that Greece could exit the common currency and Spain’s
    banking system could collapse.

    Egan-Jones forecasted the U.K.’s debt-to-GDP ratio will rise to
    103.9% this year, 110.1% next year and 116.3% in 2014. After rising 0.7%
    in 2011, GDP is forecasted to slump 1.5% this year and next.

  4. The UK has been in a steady decline from WWI to WWII, roto screwed by FDR into Empire oblivion ending up,  ultimately, as  a hang out for slackers and muslims while inflation and depression destroys the businesses and middle class.  They can look forward to some comic relief with the Olympics.  The part of the Uk is the Queen’s and her 60th Jubilee. She is in a class by herself.  Too bad the empire has not fared so well.  Great Britain is going to have some really hard times in the near future, regretfully.

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