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

[Quicken]

I sent the following compaint to the FSA regarding their failure to act in this area:

Dear Sir/Madam,

I am writing to complain about the inaction of the FSA in relation to suspicious actions taken by the Bank of England and the Bank of England Pension fund in the years 2007-2012. As the Save Our Savers blog put it:

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

Insider dealing at the Bank of England?

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.

In future, instead of listening to what the Governor tells us, perhaps we should instead study the behaviour of the Bank of England Pension Fund. Whatever Sir Mervyn King says, the managers of the Bank of England’s pension fund clearly do not believe inflation is being eradicated.

----

Thus the actions of the Bank of England (and its pension fund) have been directly contrary to both its public statements and its official remit. This suspicious behaviour is strongly suggestive of a form of insider trading between the pension fund and the MPC. Why else would the pension fund suddenly dump all UK shares prior to a share price crash the MPC claim to have not foreseen? Why also would the pension fund move so heavily into index-linked gilts when the MPC has repeatedly (and incorrectly) predicted a return to the official inflation target of 2% over a number of years? Surely the most reasonable explanation would be that the managers of the pension fund were in fact aware that the Bank of England's systematic devaluation of the GBP through near zero interest rates and huge quantitative easing would naturally lead to damaging high inflation.

As a young debt-free saver, I have been personally impacted by inflation, near zero interest rates and currency devaluation. It appears to me that insider trading crimes have been committed at the Bank of England and someone needs to hold them to account for this.

I am sure the FSA has been aware of these issues for some years. I look forward to your explanation for inaction in this area.

[Tiger Woods?]

I sent the following compaint to the FSA regarding their failure to act in this area:

Dear Sir/Madam,

I am writing to complain about the inaction of the FSA in relation to suspicious actions taken by the Bank of England and the Bank of England Pension fund in the years 2007-2012. As the Save Our Savers blog put it:

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

----

Thus the actions of the Bank of England (and its pension fund) have been directly contrary to both its public statements and its official remit. This suspicious behaviour is strongly suggestive of a form of insider trading between the pension fund and the MPC. Why else would the pension fund suddenly dump all UK shares prior to a share price crash the MPC claim to have not foreseen? Why also would the pension fund move so heavily into index-linked gilts when the MPC has repeatedly (and incorrectly) predicted a return to the official inflation target of 2% over a number of years? Surely the most reasonable explanation would be that the managers of the pension fund were in fact aware that the Bank of England's systematic devaluation of the GBP through near zero interest rates and huge quantitative easing would naturally lead to damaging high inflation.

As a young debt-free saver, I have been personally impacted by inflation, near zero interest rates and currency devaluation. It appears to me that insider trading crimes have been committed at the Bank of England and someone needs to hold them to account for this.

I am sure the FSA has been aware of these issues for some years. I look forward to your explanation for inaction in this area.

Bravo! Expect a knock at your door any minute now.

[DabHand]

All l want to know is what index linked instruments are they using given the proles cant even hedge this way (NS&I have none available)

[evetsm]

Odd they didn't punt it all on gold.

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

How do you know that they did not buy gold. ? You don't know what part of their money is in what investment. eg. Who persuaded Brown to sell and who bought that gold ?

[sleepwello'nights]

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.

Not quite. Your savings are invested by the various pension funds and form the capital available for the future growth of the economy. They are not available for your consumption but they are most definitely not removed from the economy.

Whether the investments are successful or yield a positive return for you is another issue entirely. Rest assured they generate income for the pension providers.

[DabHand]

How do you know that they did not buy gold. ? You don't know what part of their money is in what investment. eg. Who persuaded Brown to sell and who bought that gold ?

People running a FIAT governance system investing their own future in a non-fiat instrument would be a little to flagrant l expect.

Yeah l know central banks buy and hold gold, despite telling everyone its a relic. But comprising the pensions of the people that work there might be impinging on the whole illusion a bit too much for the casual observer.

['Bart']

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.

Surely the debt has to stop growing faster than inflation is eroding it.

U.S. national debt has gone from $5.7 trillion at the start of the Bush 43 era to being almost inevitably destined to hit $20 trillion sometime around 2018.

[Jack's Creation]

I sent the following compaint to the FSA regarding their failure to act in this area:

Dear Sir/Madam,

I am writing to complain about the inaction of the FSA in relation to suspicious actions taken by the Bank of England and the Bank of England Pension fund in the years 2007-2012. As the Save Our Savers blog put it:

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

----

Thus the actions of the Bank of England (and its pension fund) have been directly contrary to both its public statements and its official remit. This suspicious behaviour is strongly suggestive of a form of insider trading between the pension fund and the MPC. Why else would the pension fund suddenly dump all UK shares prior to a share price crash the MPC claim to have not foreseen? Why also would the pension fund move so heavily into index-linked gilts when the MPC has repeatedly (and incorrectly) predicted a return to the official inflation target of 2% over a number of years? Surely the most reasonable explanation would be that the managers of the pension fund were in fact aware that the Bank of England's systematic devaluation of the GBP through near zero interest rates and huge quantitative easing would naturally lead to damaging high inflation.

As a young debt-free saver, I have been personally impacted by inflation, near zero interest rates and currency devaluation. It appears to me that insider trading crimes have been committed at the Bank of England and someone needs to hold them to account for this.

I am sure the FSA has been aware of these issues for some years. I look forward to your explanation for inaction in this area.

I think you may need to go down the order of Mandanus route :-

order of mandanus definition

A brief extract;-

'' A writ of mandamus or mandamus (which means "we command" in Latin; pronounced /manˈdeɪməs/, man-day-məs), or sometimes mandate, is the name of one of the prerogative writs in the common law, and is "issued by a superior court to compel a lower court or a government officer to perform mandatory or purely ministerial duties correctly." It cannot be used to force a County Court to act (reject or authorize) upon applications that have been made. If a County Court refuses to either authorize or reject applications then the person who made the applications has to apply for permission to apply for judicial review in doing so the injured party might eventually obtain a mandatory order asking the county court to show respect to the applications that have been made.ref official notice from queens bench RCJ

Mandamus is a judicial remedy which is in the form of an order from a superior court to any government subordinate court, corporation or public authority to do or forbear from doing some specific act which that body is obliged under law to do or refrain from doing, as the case may be, and which is in the nature of public duty and in certain cases of a statutory duty.[1] It cannot be issued to compel an authority to do something against statutory provision.

Mandamus may be a command to do an administrative action or not to take a particular action, and it is supplemented by legal rights. In the American legal system it must be a judicially enforceable and legally protected right before one suffering a grievance can ask for a mandamus. A person can be said to be aggrieved only when he is denied a legal right by someone who has a legal duty to do something and abstains from doing it.''

Edited March 23, 2012 by Jack's Creation

[Quicken]

@Jack - I think we'd need an HPC lawyer for that. Anyone?

I received a response from the FSA through the post today. They said:

Thanks you for your complaints form of 18 March 2012, which we are considering as a potential complaint against the FSA.

We will write to you again on or before 18 April 2012 setting out a summary of our understanding of your complaint and whether we propose to investigate the matters you have raised.

I'll update when I get the actual response in April.

Q

[Panda]

@Jack - I think we'd need an HPC lawyer for that. Anyone?

I received a response from the FSA through the post today. They said:

I'll update when I get the actual response in April.

Q

Any laywers? BUMP.....

[Democorruptcy]

I sent the following compaint to the FSA regarding their failure to act in this area:

Dear Sir/Madam,

I am writing to complain about the inaction of the FSA in relation to suspicious actions taken by the Bank of England and the Bank of England Pension fund in the years 2007-2012. As the Save Our Savers blog put it:

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

----

Thus the actions of the Bank of England (and its pension fund) have been directly contrary to both its public statements and its official remit. This suspicious behaviour is strongly suggestive of a form of insider trading between the pension fund and the MPC. Why else would the pension fund suddenly dump all UK shares prior to a share price crash the MPC claim to have not foreseen? Why also would the pension fund move so heavily into index-linked gilts when the MPC has repeatedly (and incorrectly) predicted a return to the official inflation target of 2% over a number of years? Surely the most reasonable explanation would be that the managers of the pension fund were in fact aware that the Bank of England's systematic devaluation of the GBP through near zero interest rates and huge quantitative easing would naturally lead to damaging high inflation.

As a young debt-free saver, I have been personally impacted by inflation, near zero interest rates and currency devaluation. It appears to me that insider trading crimes have been committed at the Bank of England and someone needs to hold them to account for this.

I am sure the FSA has been aware of these issues for some years. I look forward to your explanation for inaction in this area.

You do know they overlap?

http://www.fsa.gov.uk/about/who/board/turner.shtml

Funny they don't mention this on his FSA profile:

http://www.bankofengland.co.uk/about/Pages/people/court.aspx

[scepticus]

Do not forget that many older people nicley benefited from the higher inflation .... SNIP

All excellent points.

Carry on Mr Lion.

Its a tricky social situation. One's super-ego says 'saving is good' - we inherited that super-ego from protestantism and the victorians.

Then another part of the super-ego, that instilled by central banks and various other institutions including consumer advertising, is saying 'saving is bad'.

The super-ego is divided. Therefore, look to reality and not culturally induced norms because they are defunct.