Podcast Summary
Announcing the Northern Summit winner and new role opportunity at RNP: The Proxy Podcast discusses quantitative easing's impact on property, announces a summit winner and new role opportunity, and teases an upcoming topic.
This week's episode of The Proxy Podcast is all about quantitative easing and its impact on property. Before diving into the topic, the hosts announced the winner of their first ever Northern Summit, which will take place in Manchester. They also mentioned that tickets for their final summit of the year in London are now on sale. Rob B also shared some exciting news about a new role opportunity at RNP, which he plans to fill by hiring someone who engages with their content, such as listening to the podcast or reading the magazine. The hosts promise to share more information about the role next week. Additionally, they made a quick announcement about an upcoming topic that listeners will want to know about. So, whether you're interested in macroeconomic principles or looking to attend a property summit or join a new team, there's something for everyone in this week's episode.
Webinar on Brexit, interest rates, and QE's impact on property: Learn about the future effects of Brexit, interest rates, and QE on property at a free webinar. Secure your spot by signing up for the magazine or joining early.
The Property Hub is hosting a free webinar on September 7th at 6 PM about the future of Brexit, interest rates, and quantitative easing (QE) and its impact on property. The webinar will provide valuable insights with no sales pitch, and it's limited to 100 attendees. Magazine subscribers will receive an additional invitation to a second webinar at 7 PM. If you're interested in attending, sign up for the magazine to secure your spot or join the first webinar early. The topic of the week is QE and its effect on property, which is essential knowledge for investors. Whether you're already invested or planning to be, understanding QE's impact is crucial. Don't miss this opportunity to learn and potentially receive some giveaways.
The Bank of England uses Quantitative Easing to stimulate the economy by creating new digital money and purchasing assets: The Bank of England's QE process involves creating new digital money and exchanging it for assets to increase money circulation and boost economic activity
The Bank of England is using a monetary policy tool called Quantitative Easing (QE) to stimulate the economy by creating new digital money and using it to purchase assets from institutions. The goal is to increase the amount of money in circulation and make it accessible to those who can use it effectively. Despite the name suggesting complexity, the concept is relatively straightforward and involves the central bank essentially exchanging newly created digital money for assets. This process aims to boost economic activity by putting more money into the economy. While some may think of QE as "printing money," it's essential to remember that most money is already digital. The Bank of England has a video explaining the process in more detail, which we'll link to for further clarification.
QE's Impact on Property Market: The Bank of England's QE program drives down bond yields, making property and stocks more attractive, leading to increased money supply, inflation, and higher property prices.
The Bank of England's Quantitative Easing (QE) program has a significant impact on the property market. By buying bonds, the Bank of England drives down yields, making bonds less attractive to investors, who then seek higher returns in assets like property and stocks. The increased money supply from QE is inherently inflationary, leading to higher property prices. Additionally, lower borrowing costs from QE encourage more people to borrow and buy property, further fueling price increases. However, opinions on the effectiveness and desirability of QE are divided, with some arguing it's beneficial for property investors, while others question its long-term implications.
QE benefits the rich, hurts the poor: Quantitative easing has led to unequal wealth distribution, with the rich seeing substantial gains from asset price growth while the poor are left worse off due to declining returns on savings and fixed incomes.
Quantitative easing (QE) has led to significant wealth accumulation for those who own assets, particularly property and stocks, but has left those on fixed incomes or with cash savings worse off. The Bank of England acknowledges that QE disproportionately benefits the rich and punishes the poor. Since 2009, asset prices like stocks and property have seen substantial growth, while returns on cash savings and pension annuities have declined. The New Economics Foundation reports that 40% of the stock market is owned by the wealthiest 5% of the population, indicating that the gains from QE are not evenly distributed. The foundation also claims that only a small fraction of QE funds have reached the real economy, with much of it remaining within the financial sector. This raises questions about the fairness and effectiveness of QE as a tool for economic stimulus.
QE benefits the wealthy, alternative is infrastructure spending: Quantitative Easing primarily benefits the wealthy, an alternative is to spend the money on infrastructure projects to create jobs and long-term economic benefits, but the current method's instant impact and potential political implications prevent this change.
Quantitative Easing (QE) has primarily benefited the wealthy while failing to significantly boost demand in the economy for the majority. An alternative proposed by economists is to spend the QE money on infrastructure projects instead, which would create jobs, improve infrastructure, and have long-term economic benefits. However, the current method of QE has an instant impact on the economy, while infrastructure projects do not. The government and the Bank of England are not interested in this alternative due to the long-term effects and potential political implications. Central banks have been struggling to get the economy going with low interest rates and large injections of money, but the long-term consequences of these actions may not be worth the short-term gains.
Understanding Economic Policies and Their Impact: Economic policies like QE can affect asset prices, lending, and inflation. Stay informed and make decisions based on awareness.
The economic policies being implemented, such as Quantitative Easing (QE), can lead to increased asset prices, reduced lending, and inflation. These changes may be beneficial or detrimental depending on individual circumstances, but it's essential to understand what's happening and take action accordingly. Education and awareness are key to making informed decisions and positioning oneself for potential gains. The webinar discussed in the podcast aims to provide a comprehensive understanding of these complex economic issues and their potential impact, allowing individuals to make informed decisions for their financial future. The speakers emphasized that while these policies are happening regardless of personal opinions, it's crucial to be aware and prepared. By understanding the connections between inflation, borrowing costs, asset prices, and confidence, individuals can make informed decisions and take advantage of the situation if they choose to do so.
Property Hub's Free Webinar: Register Now: Sign up for Property Hub's free webinar on September 7th, get exclusive access for magazine subscribers, or register through the link in the show notes.
The Property Hub team is hosting a free webinar on September 7th at 6 pm, with only 100 spots available for attendees. Magazine subscribers will receive a separate email with a special link. Everyone else can register through the link in the show notes at propertyhub.net/qe. The webinar will fill up quickly, so attendees are encouraged to register and turn up early. Google Inbox, an alternative to Gmail, was highlighted as a resource of the week. It offers features like email grouping, to-dos, and email scheduling, all integrated into the inbox. Mikey S, a podcast listener, shared a heartfelt review expressing gratitude for the podcast's impact on his life, helping him purchase a new home and invest in properties. The team received the review with appreciation and encouraged listeners to take advantage of the upcoming free webinar.
Google's new email service for efficient email management: The speaker is experimenting with Google's new email service for managing emails efficiently and may adopt it for business use. Tune in to the upcoming episode of 'Ask Robin Rob' for insights on HMO buying.
The speaker is currently experimenting with Google's new email service and finds it to be a promising tool for managing emails efficiently. The service, which is currently being used on a personal account, may soon be adopted for business use due to its effectiveness in reducing the time spent on emails. The speaker also recommends checking out the upcoming episode of the podcast, where they will discuss how to buy HMOs in detail. Make sure to secure your spot on the webinar by visiting propertyhub.netforward/qe or propertyhub.netforward/brexitwebinar. The webinar promises to provide valuable insights on HMO buying, including pricing, licensing requirements, and location considerations. Stay tuned for the upcoming episodes of "Ask Robin Rob" and enjoy your week.
