Mark Carney- in 9 years as a central banker, has he ever raised an interest rate ??

[LC1]

3 minutes ago, Society of fools said:

" To save people from the consequences of their folly is to create a society of fools"

A great quote, and very true.

I can't see how this will all end, but I suspect very badly. Something inevitable seems to be getting closer, but part of me thinks the current sad state of affairs could possibly continue for another generation or so, one fudge after another, pushing us closer and closer to systemic collapse, just so that the current crop of 'winners' can continue to enjoy the corrupt fantasy for a while longer.

[Society of fools]

On ‎29‎/‎10‎/‎2016 at 9:02 AM, LC1 said:

Something inevitable seems to be getting closer, but part of me thinks the current sad state of affairs could possibly continue for another generation or so, one fudge after another

Or perhaps not so much one fudge after another as one more bright idea after another. First there was low interest rates, then QE, then Help to Buy, and then a blind eye to what was essentially large scale money laundering from Russia and China.

The latter idea can still be extended to other countries after all.

Iran is coming in from the cold, is it not ? Better to have ones cash in London property than under the baleful gaze of the Mullahs back in Persia.

http://www.telegraph.co.uk/finance/property/investment/12110031/How-the-Iranians-could-rescue-Londons-luxury-property-market.html

Isn't there something called Stein's law which states that when something cannot continue for ever it must stop ? There's way too much intellectual effort going into attempts to keep this pointless merry go round going.

[Society of fools]

In all fairness, I feel compelled to update this one.

Mark Carney has in fact raised an interest rate.

He raised the rates in Canada on June 1st, 2009 ( from 0.250% to 0.5 %), then shortly thereafter on July 20, 2010 ( from 0.5% to 0.75%), and then again a couple of months later on September 8th, 2010 ( from 0.75% to 1%).

After that, it was all hold, hold, hold and cut again.

I should find this vaguely reassuring, in view of the fact that there is at least some historical record of him making three (3) rate rises in short order, but then again, September 2010 was a looooooong time ago.

And he'd only been in the job in Canada at that point for a year or so. He may not have known exactly what shingle to hang outside the door. I'd say he definitely does now though.

[Democorruptcy]

On 29/10/2016 at 6:54 AM, Society of fools said:

You know where I got my user name from LC1 ?

Somebody once gave me the quote- not sure of its provenance- but it went more or less like this:

" To save people from the consequences of their folly is to create a society of fools"

I liked that one, because that is precisely what successive governments in the United States, Canada, Australia and the United Kingdom are doing. A large group of people are making decisions that are utter folly. Instead of letting them burn, we instead rip the financial guts out of people who saw the exact same folly and avoided it.

An entire society becomes dumbed down as a result, to the point where people you'd normally regard as intelligent regard a incompetent ***** like Carney as some kind of financial rock star.

Something similar was attributed to Herbert Spencer in his essays from the 1890's. Note the title, Tampering with Money and Banks!

The ultimate result of shielding men from the effects of folly, is to fill the world with fools.
Vol. 3, Ch. IX, State-Tamperings with Money and Banks

https://en.wikiquote.org/wiki/Herbert_Spencer

[North London Rent Girl]

Brilliant factoid fest, too good a look-up opportunity to miss - looks like Herbert Spencer was channelling William Penn (October 14, 1644–July 30, 1718), who, funnily enough, Wikipedia calls a 'real estate entrepreneur'. He wrote that "if you protect a man from folly, you will soon have a nation of fools". From shirky quick internet search, he's fascinating. He was, scandalously then, a quaker, friend of the founder of the quakers, and Pennsylvania is named after his father. http://www.ushistory.org/penn/bio.htm:

"King Charles II of England had a large loan with Penn's father, after whose death, King Charles settled by granting Penn a large area west and south of New Jersey on March 4, 1681. Penn called the area Sylvania (Latin for woods), which Charles changed to Pennsylvania in honor of the elder Penn. Perhaps the king was glad to have a place where religious and political outsiders (like the Quakers, or the Whigs, who wanted more influence for the people's representatives) could have their own place, far away from England. One of the first counties of Pennsylvania was called Bucks County, named after Buckinghamshire (Bucks) in England, where the Penn's family seat was, and from whence many of the first settlers came.

Although Penn's authority over the colony was officially subject only to that of the king, through his Frame of Government he implemented a democratic system with full freedom of religion, fair trials, elected representatives of the people in power, and a separation of powers — again ideas that would later form the basis of the American constitution. The freedom of religion in Pennsylvania (complete freedom of religion for everybody who believed in God) brought not only English, Welsh, German and Dutch Quakers to the colony, but also Huguenots (French Protestants), Mennonites, Amish, and Lutherans from Catholic German states.

Penn had hoped that Pennsylvania would be a profitable venture for himself and his family. Penn marketed the colony throughout Europe in various languages and, as a result, settlers flocked to Pennsylvania. Despite Pennsylvania's rapid growth and diversity, the colony never turned a profit for Penn or his family. In fact, Penn would later be imprisoned in England for debt and, at the time of his death in 1718, he was penniless."

Well, let's hope no modern-day real estate entrepreneurs end up in such a pickle, that would be just awful.

[billybong]

On 10/29/2016 at 7:02 AM, LC1 said:

A great quote, and very true.

I can't see how this will all end, but I suspect very badly. Something inevitable seems to be getting closer, but part of me thinks the current sad state of affairs could possibly continue for another generation or so, one fudge after another, pushing us closer and closer to systemic collapse, just so that the current crop of 'winners' can continue to enjoy the corrupt fantasy for a while longer.

My highlight,

Some would say it's leading directly to the disintegration of the eu - amongst other massive changes around the world.

Carney (and his sidekicks) has helped to steer things in that direction - maybe intentionally.

Edited February 24, 2017 by billybong

[jo_gian]

24 minutes ago, billybong said:

My highlight,

Some would say it's leading directly to the disintegration of the eu - amongst other massive changes around the world.

Carney (and his sidekicks) has helped to steer things in that direction - maybe intentionally.

I don't really understand what is the plan of the EU. Let's say Le Pen and Geert do not win this time, then what? In 4-5 years time there are election times again and as EU don't want to handle the underlying issues the situation will be way worse, so it's a guaranteed EU sceptic win in multiple EU countries.

Instead of bashing the UK they should realise we are right and they HAVE TO deal with the immigration and growing inequality. Even if EU does not fall apart this year, it will in 5 years time...

[Society of fools]

Thanks for the quote provenance Rent Girl and Democorruptcy. Interesting that that kind of quote- against the backdrop of all the turmoil of the 20th and 21st centuries- does not seem to have anybody in a position of leadership in recent times channelling it.

I guess politicians think the sheeple want to continue being fed the HPI opium.

3 hours ago, jo_gian said:

as EU don't want to handle the underlying issues the situation will be way worse, so it's a guaranteed EU sceptic win in multiple EU countries........Even if EU does not fall apart this year, it will in 5 years time...

Sometimes it takes a truly awful situation to change the minds of the people on an issue of fundamental importance. I may have mentioned before on this forum, after the global slowdown of the 1890's, Australian major city house prices took a dive and then stayed down for 75 years, more or less until the mid-1960's.

And yet this period of time from 1895 to 1965 is hardly regarded as a doom and gloom three generational history of Australia. Closer to a golden Australian age in fact, even against the backdrop of huge challenges. And no HPI recorded. Who in the political class would ever believe that was possible now ?

 

[Morganite]

This is Mark Carney's theme song in regards to interest rates.

[Tiger Woods?]

On 25/10/2016 at 0:36 AM, Society of fools said:

 

Here's my question: My understanding is that during that entire professional tenure as a Central Banker, he has never, not on one single occasion, raised an interest rate, in either country.

The secret to success is to find something you are good at and then keep doing it.

[billybong]

http://www.zerohedge.com/news/2015-01-02/if-quantitative-easing-works-why-has-it-failed-kick-start-inflation

.