Bank of England goes barrrr
Bank of England is trying to prove Satoshi’s Hypothesis about the central bank’s unlimited printing power to damage the entire country.
When the supply of money increases, the valuation of the currency decreases because there is a force of supply to increase the quantity of the money without possibly pushing the demand higher. It is an artificial pushing demand without the actual demand.
Now, they start the self-feeding loop to buy their own bonds with higher interest returns to retain investors. It will become a downward spiral that harder to get out as the country because the monetary policy becomes short-term incentives program and harder to weather the uncertainty of the future.
Its currency will become even weaker since the power of spending will erode further if the economy does not get better.
Even if the economy gets better, their growth has to outpace the speed of money printing…
