AC44

Boe Again.. What Is Going On With These Guys?

37 posts in this topic

Why is this not on BBC or Guardian or any other media? This is quite big.

From http://www.saveoursavers.co.uk/inflation/inflation-the-savings-killer/

[Although Deputy Governor Charlie Bean has admitted that the Bank’s MPC entirely failed to predict the financial crisis, the Bank’s pension fund presciently sold its entire 21.6% holding of UK shares at the end of 2007, avoiding the calamitous losses suffered by everybody else’s pension funds the following year when the stock market collapsed.

Not only that, but the fund switched massively to index-linked gilts. The proportion held in index-linked securities was increased from 25.6% of the portfolio to a massive 70.7% in the year to February 2008. By February 2009, they accounted for 88.2% and, by February 2010, 94.7%. This level has been maintained, with index-linked consisting of 94.8% of the portfoio in the last accounts to February 2011.

Throughout this period we were being told by the bigwigs at the Bank of England that the danger was not inflation but deflation. As blogger Guido Fawkes points out, given the programme of Quantitative Easing instituted by the Bank, this virtually amounts to insider trading. I’m not holding my breath waiting for the Financial Services Authority to mount an investigation.

So, next time we hear Sir Mervyn King expressing sympathy for savers or telling us that inflation will soon be a thing of the past, bear in mind that his own pension pot, so well protected from the effects of inflation, was arbitrarily increased from £3.95m to £5.36m. And whenever Charlie Bean opens his mouth to insult savers, telling us to stop moaning and that we’re better off than we think, don’t forget that his own pension pot, a measly £1.44m in the year to February 2009, was increased to £1.97m the following year and then injected with yet another half a million pounds to bring it up to £2.52m by February 2011. And it is almost entirely invested in index-linked gilts.]

OR

from here:

http://order-order.com/2011/06/02/the-bank-of-englands-great-inflation-swindle/

This is the exact opposite of what you would do if you really feared deflation, in a deflationary environment fixed income securities rocket, out-performing index-linked securities. Mervyn King’s Bank of England pension pot profits from doing the exact opposite of what it should if the trustees believed the Governor’s pronouncements were credible. This is no accident, Guido believes it is the deliberate policy of the Fed and the Bank of England, with the complicity of their political masters in the US Treasury and HM Treasury, to inflate their government debts away. Inflation is a pernicious form of taxation, it punishes the old and those who save and leads to a worse reckoning in the end. We are being deliberately swindled by the political elite.

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Maybe we should mail the story to the BBC and other MSM and then see if they have the arrogance to ignore it.

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Maybe we should mail the story to the BBC and other MSM and then see if they have the arrogance to ignore it.

The first blogger from order-order.com has highlighted this issue for some time now..

Cant believe that the FSA has not asked any questions for this one..

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It was reported at the time of doing so ( moving the bulk of the funds into indexed linkers) and I for one did not follow suit :(

But on the other hand for them to claim they did not see it coming is utter bull$hit, not only did they know it was coming they new what policy they were going to use to deal with it

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Inflation is a pernicious form of taxation, it punishes the old and those who save and leads to a worse reckoning in the end. We are being deliberately swindled by the political elite.

Do not forget that many older people nicley benefited from the higher inflation in previous decades that wiped out most of their debts on their houses.

Moderate inflation is actually good for younger people who are more likely to have debts than savings, and everything that benefits the younger generation has to be good in the current situation that favours the older generations (they had chances in their lives the young people today will never have).

I do not understand anyway why people who save much of their money are seen as benefitial for the economy. They are not. Money needs to change hands quickly and continuosly to promote growth. If a pensioner saves 100,000 pounds for 30 years that money could have changed hands 30 times (for arguments sake) during that time and contributed 3 million pounds to the economy. Banks do not need the money from savers, they can get what they need from other sources and invent the rest out of thin air due to fractional reserve banking.

While savers may be prudent and will be less at risk themselves at old age there is little benefit for the economy or society, so it is not clear why the BOE should protect savers. In the contrary, in difficult economic times it is a duty of the BOE to encourage people with a lot of savings to spend their savings and stimulate the economoy by increased consumption. Just to be clear, I save also for a pension and have already (at 40) more than £100k in various private pension pots - but as my savings are just for me and are removed from the economy for the next few decades I do not expect support from the BOE to protect them.

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Do not forget that many older people nicley benefited from the higher inflation in previous decades that wiped out most of their debts on their houses.

Moderate inflation is actually good for younger people who are more likely to have debts than savings, and everything that benefits the younger generation has to be good in the current situation that favours the older generations (they had chances in their lives the young people today will never have).

[...]

You are drifting off topic (don't know if deliberately or not), this thread is about the BOE pension scheme doing insider trading!

This should end up in a courtroom, not the FSA!

Edited by awake_eagle

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You are drifting off topic (don't know if deliberately or not), this thread is about the BOE pension scheme doing insider trading!

This should go in front of a court, not the FSA!

I think there are two sides to it: One is that they were probably involved in insider trading in 2008, which is disgraceful.

The second side is is that the BOE are not as concerned about higher inflation as the official targets would suggest - this is understandable under the circumstances. If you look at the debt and growth figures then low interest rates and relatively high inflation for a long, long time (decades?) is actually the only way to deal with the debts of much of the western world. This should be plain to see for everyone now, and even if the BOE cannot officially admit it that is what is going to happen. Everyone knows it and can act accordingly. So for the last few years (2010 - 2012) it was not insider trading.

Edited by Lion

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I think there are two sides to it: One is that they were probably involved in insider trading in 2008, which is discraceful.

It's not disgraceful, it's criminal and should be dealt with in court.

It's about time these thieves are treated like all other criminals!

The second part of your post is again an apparent attempt to water down the issue and derail the thread.

Edited by awake_eagle

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It's not disgraceful, it's criminal and should be dealt with in court.

It's about time the thieves are treated like all other criminals!

The second part of your post is again an apparent attempt to water down the issue and derail the thread.

If it is criminal I am confident it will be dealt in court.

Unfortunately insider trading is often a grey area... otherwise nobody involved in finance could trade for their own benefit. The only clean solution would be to separate the management of pension trusts of banks from the banks completely - so no financial institution could have a say in the management of their pension trusts. Or any changes they want to make will have to be made public and will only have an effect after 12 months - by then any insider knowledge should be common knowledge. The same could be enforced for managers who want to trade shares of their own company. But I am not sure this would be enforceable - it could be an infrigement of property rights. But maybe that's the price financial institutions have to pay in order to avoid insider trading.

Edited by Lion

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If it is criminal I am confident it will be dealt in court.

Unfortunately that is very rarely the case with financial crimes.

Unfortunately insider trading is often a grey area...

It's not grey at all, it's just being treated like that because there is no will to prosecute financial criminals since then most of the 'elite' would end up in jail.

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Odd they didn't punt it all on gold.

It's a guaranteed to the moon one way bet doncha know.

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Just to point out that the BOE are not bankers

The BOE is an arm of the State.

And this happened in 2007 - when Labour were in power

So the left wing dominated media will not go after a story like this.

This country was plundered and bankrupted over 13 years

and now we are paying the consequences

and there is nothing anyone can do about it

So suck it up

:blink:

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Although Deputy Governor Charlie Bean has admitted that the Bank’s MPC entirely failed to predict the financial crisis

Tells you everything you need to know.

Why anyone pays any attention to these jokers is beyond me.

And what's worse is that we haven't had the crisis yet - and they're going to miss it again.

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Do not forget that many older people nicley benefited from the higher inflation in previous decades that wiped out most of their debts on their houses.

Moderate inflation is actually good for younger people who are more likely to have debts than savings, and everything that benefits the younger generation has to be good in the current situation that favours the older generations (they had chances in their lives the young people today will never have).

I do not understand anyway why people who save much of their money are seen as benefitial for the economy. They are not. Money needs to change hands quickly and continuosly to promote growth. If a pensioner saves 100,000 pounds for 30 years that money could have changed hands 30 times (for arguments sake) during that time and contributed 3 million pounds to the economy. Banks do not need the money from savers, they can get what they need from other sources and invent the rest out of thin air due to fractional reserve banking.

While savers may be prudent and will be less at risk themselves at old age there is little benefit for the economy or society, so it is not clear why the BOE should protect savers. In the contrary, in difficult economic times it is a duty of the BOE to encourage people with a lot of savings to spend their savings and stimulate the economoy by increased consumption. Just to be clear, I save also for a pension and have already (at 40) more than £100k in various private pension pots - but as my savings are just for me and are removed from the economy for the next few decades I do not expect support from the BOE to protect them.

figures or it never happened.

Edited by Jack's Creation

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While savers may be prudent and will be less at risk themselves at old age there is little benefit for the economy or society.

Are you being serious or deliberately obtuse?

Having been out of work a couple of times, my savings ensured that I didn't need any government handouts. Would you rather I'd spent all my money during the good times and had none left for the bad times (cf new labour)?

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Are you being serious or deliberately obtuse?

Having been out of work a couple of times, my savings ensured that I didn't need any government handouts. Would you rather I'd spent all my money during the good times and had none left for the bad times (cf new labour)?

The problem is that those who need it least seem to save most. The typical unemployed person on benefits will have little savings anyway. The savings are not distributed well. If the wealthy people would save less, there may be less unemployment and therefore less need to save and so on.

Saving (hoarding cash) in an economic downturn is like hoarding food in a famine - while it may benefit the individual, the society suffers, especially if many do this.

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I don't mind inflation if interest rates reflect the inflation level and if wage inflation keeps up with price inflation. But neither of these two conditions apply. The gov't slyly took away inflation linked NSI and changed pensions to be based on CPI instead of RPI. We have the bad aspects of inflation but not the compensating conditions. :angry:

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Odd they didn't punt it all on gold.

It's a guaranteed to the moon one way bet doncha know.

Such a jerk.

17,000 posts of pure BS!

A traffic troll if ever I've seen one...

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The problem is that those who need it least seem to save most. The typical unemployed person on benefits will have little savings anyway. The savings are not distributed well. If the wealthy people would save less, there may be less unemployment and therefore less need to save and so on.

Saving (hoarding cash) in an economic downturn is like hoarding food in a famine - while it may benefit the individual, the society suffers, especially if many do this.

If asset values had been allowed to fall currency would be spent.

You seem to be advocating aggressive currency debasement...it NEVER ends well!

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Why is this not on BBC or Guardian or any other media? This is quite big.

From http://www.saveoursavers.co.uk/inflation/inflation-the-savings-killer/

[Although Deputy Governor Charlie Bean has admitted that the Bank’s MPC entirely failed to predict the financial crisis, the Bank’s pension fund presciently sold its entire 21.6% holding of UK shares at the end of 2007, avoiding the calamitous losses suffered by everybody else’s pension funds the following year when the stock market collapsed.

Not only that, but the fund switched massively to index-linked gilts. The proportion held in index-linked securities was increased from 25.6% of the portfolio to a massive 70.7% in the year to February 2008. By February 2009, they accounted for 88.2% and, by February 2010, 94.7%. This level has been maintained, with index-linked consisting of 94.8% of the portfoio in the last accounts to February 2011.

Throughout this period we were being told by the bigwigs at the Bank of England that the danger was not inflation but deflation. As blogger Guido Fawkes points out, given the programme of Quantitative Easing instituted by the Bank, this virtually amounts to insider trading. I’m not holding my breath waiting for the Financial Services Authority to mount an investigation.

So, next time we hear Sir Mervyn King expressing sympathy for savers or telling us that inflation will soon be a thing of the past, bear in mind that his own pension pot, so well protected from the effects of inflation, was arbitrarily increased from £3.95m to £5.36m. And whenever Charlie Bean opens his mouth to insult savers, telling us to stop moaning and that we’re better off than we think, don’t forget that his own pension pot, a measly £1.44m in the year to February 2009, was increased to £1.97m the following year and then injected with yet another half a million pounds to bring it up to £2.52m by February 2011. And it is almost entirely invested in index-linked gilts.]

OR

from here:

http://order-order.com/2011/06/02/the-bank-of-englands-great-inflation-swindle/

This is the exact opposite of what you would do if you really feared deflation, in a deflationary environment fixed income securities rocket, out-performing index-linked securities. Mervyn King’s Bank of England pension pot profits from doing the exact opposite of what it should if the trustees believed the Governor’s pronouncements were credible. This is no accident, Guido believes it is the deliberate policy of the Fed and the Bank of England, with the complicity of their political masters in the US Treasury and HM Treasury, to inflate their government debts away. Inflation is a pernicious form of taxation, it punishes the old and those who save and leads to a worse reckoning in the end. We are being deliberately swindled by the political elite.

I have just watched "In Time". We seem to be frighteningly close to the control (not the mechanism) shown in this film.

Edited by man o' the year

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It's not grey at all, it's just being treated like that because there is no will to prosecute financial criminals since then most of the 'elite' would end up in jail.

Precisely. :angry:

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