Bank of England should retire QE debt

The message of the day is "damn the consequences, the casino bar shall remain open", whatever it takes, no matter the consequences to taxpayers who will be responsible for the bar tab. Bank of England Launches Two New Stimulus Packages The BBC reports Bank shares jump on new business support plans Bank shares have jumped in the wake of plans from the Bank of England to launch two new stimulus packages.

OTTAWA • Mark Carney will be travelling relatively light when leaves Canada for the U.K., but he’ll be taking on excess baggage when he arrives at the Bank of England. Mr. Carney, who begins his five-year term as BoE boss on July 1, inherits a central bank that appears maxed-out but still has some wiggle room left to avoid a double-dip recession and strengthen the lifeline to banks.

Following yesterday's G-7 announcement which sent the USDJPY soaring, and its embarrassing "misinterpretation" clarification which undid the entire spike, by an anonymous source in the US who said the statement was in fact meant to state that the Yen was dropping too fast and was to discourage "currency wars", it was only a matter of time before another G-7 country stepped into the fray to provide a mis-misinterpretation of the original G-7 announcement.

The Bank of England's Financial Policy Committee (BoEFPC) warns there is "evidence of the re-emergence of... behavior in financial markets not seen since before the financial crisis," citing the increased issuance of synthetic products and added that banks have "little margin for error against a backdrop of low growth in the advanced economies," despite what we are told about their 'fortress balance sheets.

Last week we introduced our readers to the BIS' Head of Foreign Exchange and Gold, Benoit Gilson.

Daryl Montgomery submits: The spread between Greek government bonds and their German equivalent hit a new record high yesterday (April 8th) as new worries of a possible Greek debt default emerged. EU central bank president, Jean-Claude Trichet, promptly moved to calm the markets by stating that Greece is in no danger of default and it does not require a bailout. While we have heard it all before, Trichet's remarks kept the euro from hitting a new low against the U.S.

By Paulo Santos:It's all over the news and message boards, the skepticism that the SNB can contain the Swiss Franc (FXF) market and enforce its floor against the euro (FXE), now set at EUR/CHF 1.20.

LONDON (Reuters) - Britain's government and the Bank of England will act together with new monetary policy tools to tackle tightening credit and financial market conditions triggered by the euro zone crisis, finance minister George Osborne said on Thursday. Osborne said BoE Governor Mervyn King would reveal more details of the scheme, designed to protect Britain's ailing economy from the shockwaves of Europe's banking and sovereign debt problems, in a speech at 1600 EDT. ...