Bank of England asks Alistair Darling for go-ahead to print money

[Creeping Death]

Bank of England asks Alistair Darling for go-ahead to print money (http://business.timesonline.co.uk/tol/business/economics/article5762515.ece)
The Bank of England will begin radical moves to “print money” in as little as two weeks as it embarks on an aggressive new phase of its efforts to stem the economic slump.
Didn't they try this in Zimbabwe? Worked there nicely. Everyone's a billionaire!

[SwordoftheVistula]

Someone from the comments section there had a good point: if deflation is so imminent, why is gold skyrocketing in price?

[Vulpix]

Someone from the comments section there had a good point: if deflation is so imminent, why is gold skyrocketing in price?

Loss of faith in irredemable currency.


Our historical review clearly shows that whenever deteriorating credit conditions undermined the credit quality of issuers of paper currency, gold was preferred to paper currency as a hoarding vehicle.
The black market price of gold traded at a premium to its official convertibility ratio
during these periods. It is the deteriorating credit quality of currency issuers, not whether we operate under a fixed or floating exchange rate system, which is the key to understanding gold’s behavior under deflation. Whenever deteriorating credit conditions negatively impact the issuers of paper currency, investors turned towards gold as the preferred hoarding vehicle. To predict the future behavior of gold under deflation, one must include the impact of deteriorating credit conditions on the issuers of competing cash-substitutes in today’s market.

Source (http://newsmine.org/content.php?ol=cabal-elite/international-banking/gold-scam/BehaviorofGold.pdf)

[stormlord]

don't be silly guys, they aren't printing money, they're just doing a spot of quantitative easing :D

[Creeping Death]

Loss of faith in irredemable currency.
Print our own money, it worked with the Greenbacks (http://american_almanac.tripod.com/ascher1.htm) that Lincoln printed.

[SwordoftheVistula]

Loss of faith in irredemable currency.

Well, there has to be a reason for it. Either that it will just arbitrarily stop being accepted, which is so unlikely as to be beyond the realm of possibility for a currency such as the British Pound. The other possibility is that the currency will be so inflated in the near future so as to make the money currently held drastically reduced in value, which is the apparent fear here.