Monday, Apr 30, 2007
BoE "out of control"
Bloomberg: King's Inflation-Targeting Ways at Bank of England Lose Luster
``The Bank of England's inflation focus has been too narrow. It's too late to engineer a soft landing now.''
Posted by confused76 @ 01:34 AM (42 views) Add Comment
4 Comments
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1. japanese uncle said...
Bottomline is, the BoE is an eely entity without any genuine accountability, but just an obligation to write a letter of explaining to the Chancellor in the event of its failure in maintaining monetary/economic stabilty. In this sense they look like Whitehall mandarins. The Bank, however is not part of the government, but owned by private financial interests whose names are not disclosed, which is extremely weird considering the extremely public nature of the Bank's business and its impact to the wider society. How the governor and the member of the MPC are penalized in the event of their negligence, often involving the financial agony of the millions? Are they not punished by the real owners of the Bank? It seem not. A logical conclusion here is, probably the Bank's 'failure' does not really constitute a failure in the eyes of the real owners of the Bank. Quite the opposite, perhaps.
The penalty of being criticized by the IMF, or some media, may well not mean a thing to the long -run career of the govenor and the member of the MPC. Look, they adopt decision by majority quite like a student council, thereby diluting the pain of failure through 'collective accountability'.
Laughable institution, isn't it?
2. confused76 said...
JU
guess you are right
the country is ripe for a change of leadership
3. japanese uncle said...
I am afraid the New Labour's now inevitable demise will not have any impact at all to this centuries-old arrangement in which issuing paper currency charging interest can make the world's easiest billions. Why do they have to go into the pockets of the private financiers? And they are the ones who make multi-billions by turning this nation into a giant casinoes. Every aspect of our lives are now starting to look like gambling, as encouraged by the government. Libdem has been the only hope until Charles Kennedy was politically assassinated. Now the party is run by financiers as same as other major parties. Libdem's idiological stance is hardly compatible with the careers such as ex-investment bankers, ex-cheif-economists of the Royal Dutch Shell and RIIA (deeply associated with MI6 as widely known). I see little hope in the political scene in this country any longer.
4. harold said...
Very interesting points JU, if somewhat depressing.