BOE Halts Bond Purchases(QE) as Officials Focus on Lending!

• The purpose of QE is not to help the economy. It is to help the banks. Without limitless amount of money created out of thin air at low or zero interest rates, the banks will freeze up and collapse. The UK economy is so tied up to QE that withdrawal of QE means collapse, interest rates rising … I am not sure what game these Illuminist banksters are playing. They may be preparing to pull the plug on the world economy via a financial derivatives collapse by withdrawing QE!
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• The shift of focus of the BOE to stimulating bank lending is BS propaganda. Total government, corporate and private debts as a percent of GDP is close to 1000%. It is the highest in the western world. Something else is going on but the MSM is feeding us propaganda, lies, disinformation … to hide the truth! There is no doubt that UK is heading for collapse with or without QE! It is a question of when?
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  BOE Halts Bond Purchases as Officials Focus on Lending! 
  by Svenja O’Donnell and Scott Hamilton, http://www.bloomberg.com/ 
  The Bank of England halted expansion of its bond-buying program as officials shifted focus to stimulating bank lending to support a recovery that remains lackluster.
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  The nine-member Monetary Policy Committee led by Governor Mervyn King said that it doesn’t plan to buy any more bonds beyond the 375 billion pounds ($600 billion) already purchased, concluding a third round of quantitative easing. The decision was forecast by 35 of 45 economists in a Bloomberg News survey. The rest predicted an increase of as much as 50 billion pounds.
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  Today’s move suggests the London-based central bank may focus on credit-boosting initiatives such as the Funding for Lending Scheme to ignite growth. Increased inflationary pressures may also have prompted policy makers to hold fire even as surveys point to renewed weakness after the U.K. economy surged 1 percent in the third quarter.
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  “The outlook for the U.K. economy is still uncertain,” Roger Bootle, founder of Capital Economics Ltd. and a former U.K. Treasury adviser, said in an interview on Bloomberg Television’s “City Central” in London. “I suspect the fourth quarter is going to be weak, and if that’s the case, the discussion will come back to QE. I think we’re on course for more QE in the new year.”
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  The Bank of England also kept its benchmark interest rate a record low of 0.5 percent. The pound erased its decline against the dollar after the announcements and traded at $1.5996 as of 12:45 p.m. in London. U.K. 10-year gilts erased an advance, pushing the yield up 3 basis points to 1.786 percent.
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  QE Impotence
  BOE Deputy Governors Paul Tucker and Charles Bean both suggested in recent speeches that asset purchases may no longer have the same impact on the economy as when first introduced in 2009. At the same time, Martin Weale has questioned whether loosening policy is right with inflation above the central bank’s 2 percent target.
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  Inflation was at 2.2 percent in September and King said last month that recent energy costs increases mean it will stay above the goal “well into next year.” The MPC had new growth and inflation forecasts at today’s meeting, which it will publish next week. Minutes of the meeting, showing how the committee members voted, will be released on Nov. 21.
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