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Mervyn King Says Government Must Produce A Plan To Repay National Debt.

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http://news.sky.com/skynews/Home/Business/...n_National_Debt

At the Lord Mayor's Banquet at Mansion House in the City, Mervyn King said politicians need to get seriously about tackling public borrowing.

He said: "Five years from now national debt, as a proportion of national income, is expected to be more than double its level before the crisis.

"So it is also necessary to produce a clear plan to show how prospective deficits will be reduced during the next Parliament, so returning to a gradually declining path for the ratio of national debt to national income."

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Lord Mayor's Banquet at Mansion House in the City

Good grief.

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Looks like he's just p1ssed all over Gordon's 'investment' v Tory cuts.

:lol:

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I notice he didn't say banks must a produce a plan not to pay bonuses for failure to already rich men before they beg and plead for more taxpayer's money.

Market discipline for the proles, socialism for the rich continues.

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Looks like the gimp is getting a bit miffed, perhaps he's discovering the old militancy which made him sign the that letter about Thatchers economic policy all of those years ago.

I wonder if he's also realised he won't be in power for much longer.

King is basically saying he has no confidence in the govt policy therefore no confidence in the PM.

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Looks like he's just p1ssed all over Gordon's 'investment' v Tory cuts.

... and as the election draws closer, and the polls keep showing Labour in trouble, we'll just keep getting more and more of this from civil servants at all levels.

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Brown is now irrelevant.

Darling or at least his advisers are in charge at the Treasury and King at the BoE.

I was once told by a very senior consultant (who remembered the last two changes of Government in 1979 and 1997) that in the year prior to a certain defeat the Civil Service tends to start ignoring the incumbent politicians and starts readying plans for the regime change.

Let's face it, they will have a good idea that the Tory's will make cuts and so they are readying for that.

Edited by mikelivingstone

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is anyone listening

I am. What's remarkable about what Mervyn King says is that, in my experience, it is extremely considered to the extent that it is "obvious".

This is a statement which goes beyond what many might think is obvious. It has significant political ramifications.

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Guest sillybear2

They already have a plan... and it involves Merv's printing press.

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Government Must Produce A Plan To Repay National Debt.

Rather than joe public? - Merv you are a saint; but Gordo & his ilk are not that rich.

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Pay it back. :o Just because it is borrowed doesn't mean you have to pay it back heaven forbid...only people that can afford to pay it back, pay it back...governments don't they can't afford to. :lol:

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They already have a plan... and it involves Merv's printing press.

Borrowing is not a plan to repay debt... Mervyn is on about our balance of payments and balance of trade. Take a look, they're interesting.

The most obvious interpretation that makes sense to me is that this is signalling a dramatic reduction in the availability of Sterling credit... by some mechanism.

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http://www.bankofengland.co.uk/publication...9/speech394.pdf

The second factor is the level of sterling which, despite its recent rally, is still some 20%

lower than in the summer of 2007. That will encourage a switch in spending, at home

and abroad, towards goods and services produced in the UK.

MERVYN KING

GOVERNOR OF THE BANK OF ENGLAND

at the Lord Mayor’s Banquet for Bankers and Merchants of the City of London at the

Mansion House

on Wednesday 17 June 2009

My Lord Mayor, Mr Chancellor, My Lords, Ministers, Aldermen, Mr Recorder, Sheriffs,

Ladies and Gentlemen,

It has been quite a year. A year to remember, but not to repeat. Since we last met, a

financial panic swept through markets in September, several major financial institutions

failed, and a remarkable collapse of confidence around the world led to unprecedented

declines in industrial production and national output. World trade fell by almost 15% in

six months, a faster rate of decline than in the Great Depression.

I always compained about his twee introductions but now they are gone, I miss them.

Edited by Tom Peters

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Guest sillybear2
Borrowing is not a plan to repay debt... Mervyn is on about our balance of payments and balance of trade. Take a look, they're interesting.

We have a fiat money system based on exponential growth, the monetary base can never be allowed to shrink, the debt and interest payments will be met by... wait for it... taking on more debt. Debasing the currency also settles the current account deficit too, as it eventually trashes the currency and our purchasing power parity.

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Kitty Ussher just quit. Junior treasury minister apparently. Has Darling stood up yet?

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