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.
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.
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
2--QE 4: Folks, This Ain't Normal - What You Need To Know About The Fed's Latest Move, zero hedge
3---Our economic pickle, NYT
FEDERAL income tax rates will rise for the wealthiest Americans, and certain tax loopholes might get closed this year. But these developments, and whatever else happens in Washington in the coming debt-ceiling debate, are unlikely to do much to alter one major factor contributing to income inequality: stagnant wages. For millions of workers, wages have flatlined. Take Caterpillar, long a symbol of American industry: while it reported record profits last year, it insisted on a six-year wage freeze for many of its blue-collar workers.
Wages have fallen to a record low as a share of America’s gross domestic product. Until 1975, wages nearly always accounted for more than 50 percent of the nation’s G.D.P., but last year wages fell to a record low of 43.5 percent. Since 2001, when the wage share was 49 percent, there has been a steep slide.4---IMF: U.S. Has Done Enough Budget Cutting for 2013, WSJ
5---Sanjay Gupta and Tom Ridge warn about psychiatric drugs in mass murders, natural news
6---Bank of England frontrunner says QE not enough to get growth going, Telegraph
Britain's £375bn money printing programme has run out of steam and new ways must be found to stimulate the economy, according to Lord Turner, one of the leading candidates for the Bank of England governorship
7---Inside the Risky Bets of Central Banks, WSJ
8--400,000 still homeless three years after Haitian earthquake, WSWS
A May 2012 report by Vijaya Ramachandran and Julie Walz of the Center for Global Development (CGD) gives some background to this concern. Titled “Haiti: Where Has All the Money Gone?” the report differentiates between humanitarian aid—defined as immediate relief funding—and longer-term funds for reconstruction. Of the former category, only 1 percent of donated funds went to the Haitian government, with the remainder going to NGOs and for-profit companies.
9---Mario Draghi has saved the rich, now he must save the poor, Telegraph
The European Central Bank has washed its hands of any further responsibility for the 27m people across the eurozone listed as unemployed or classified as discouraged workers.
10---World Bank Chief Economist: ‘Risky Year’ Ahead For Global Economy, WSJ