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Merv Nukes Labour!

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Bank of England boss Mervyn King says he has "genuine concerns" about the course the UK economy is taking.

Speaking before the Treasury Select Committee, Mr King said he was "more uncertain now than ever" about how the economy would play.

He was speaking after a report by the Organisation for Economic Co-operation and Development said the UK economy was expected to constrict by 4.3% this year and then stagnate in 2010.

Mr King and fellow Bank policymakers agreed the worst of the falls were over and said the weak pound was helping bring Britain out of recession.

The world economy remains in deep recession. The global banking and financial system remains fragile despite further significant intervention by the authorities.

They added evidence so far was positive from its mammoth £125bn quantitative easing programme to boost money supply.

However, the picture was "very mixed" in spite of green shoots from sectors in the economy, according to Mr King.

He said: "I feel more uncertain now than ever, because it's not a pattern of a recession coming into recovery that we've seen since the 1930s."

Mr King warned that banks were still restricting credit to companies, hampering an recovery.

He added: "There are genuine concerns about how quickly the recovery will pick up - looking at the clear evidence, (firms) are finding it hard to access credit from the banking system.

"A combination of that and real uncertainty over the global economy makes it very difficult to be confident of a rapid recovery."

They don't have a clue where this is going at the moment.

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Hello Hamish. Mr King also said:

"There will certainly need to be a plan for the lifetime of the next parliament, contingent on the state of the economy, to show how those deficits will be brought down, if the economy recovers, to reach levels of deficits below those which were shown in the budget figures."

http://www.guardian.co.uk/business/2009/ju...es-with-darling

"if the economy recovers" ??

Very interesting use of words there.

Edited by MOP

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Mr King and fellow Bank policymakers agreed the worst of the falls were over and said the weak pound was helping bring Britain out of recession.

They don't have a clue where this is going at the moment.

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Mr King and fellow Bank policymakers agreed the worst of the falls were over and said the weak pound was helping bring Britain out of recession.

Plans set out in the Budget to cut deficits were not "clear enough", Mr King told MPs. He said he was "more uncertain now than ever" on the prospect of the UK making a quick recovery from recession. . .

"The scale of the deficit is truly extraordinary".

Edited by Timm

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Guest sillybear2

Merv has finally woke up to the fact Labour's policy has gone from tax & spend to borrow & spend to print & spend, and he's the one signing the bull$hit cheques.

Edited by sillybear2

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Guest Parry
Mr King and fellow Bank policymakers agreed the worst of the falls were over and said the weak pound was helping bring Britain out of recession.

So the UK's running a trade surplus now? Last time I looked it was around £8Bn a month in deficit.

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He said he was "more uncertain now than ever" on the prospect of the UK making a quick recovery from recession. . .

No, thats not what he said at all.

He said: "I feel more uncertain now than ever, because it's not a pattern of a recession coming into recovery that we've seen since the 1930s."

It's entirely reasonable to be uncertain as to the pattern of the recovery, but he doesn't specifically mention the timing.

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Guest happy?
Plans set out in the Budget to cut deficits were not "clear enough", Mr King told MPs. He said he was "more uncertain now than ever" on the prospect of the UK making a quick recovery from recession. . .

"The scale of the deficit is truly extraordinary".

Am I the only one who thinks Mr King might have been more use saying something five years ago. He seems really good at describing the elephant - I thought his job was to stop it getting into the room in the first place.

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Guest Parry
No, thats not what he said at all.

He said: "I feel more uncertain now than ever, because it's not a pattern of a recession coming into recovery that we've seen since the 1930s."

It's entirely reasonable to be uncertain as to the pattern of the recovery, but he doesn't specifically mention the timing.

Far too much uncertainty about the inevitable.

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No, thats not what he said at all.

He said: "I feel more uncertain now than ever, because it's not a pattern of a recession coming into recovery that we've seen since the 1930s."

It's entirely reasonable to be uncertain as to the pattern of the recovery, but he doesn't specifically mention the timing.

Robert Higgs, of the Independent Institute, talks with EconTalk host Russ Roberts about the Great Depression, the New Deal, and the effect of World War II on the American economy. Using survey results, financial data, and the pattern of investment in the 1930s, Higgs argues that New Deal policies created a climate of uncertainty that prolonged the Great Depression. Using consumption data, he argues that prosperity did not return during wartime, but rather after the war when government intervention in the economy subsided.

http://www.econtalk.org/archives/2008/12/h..._on_the_gr.html

http://www.independent.org/aboutus/person_detail.asp?id=489

This Higgs bloke thinks it took 20+ years to recover from the 1929 crash, so that would be about 2027 before we see recovery........hmm sounds about right ay merv???

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It's entirely reasonable to be uncertain as to the pattern of the recovery, but he doesn't specifically mention the timing.

Quite - he's raising the question about whether there will be a recovery - let alone when. The subtext, as others have picked up, is that last time we saw something like this, it took decades before a recovery was seen.

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No, thats not what he said at all.

He said: "I feel more uncertain now than ever, because it's not a pattern of a recession coming into recovery that we've seen since the 1930s."

It's entirely reasonable to be uncertain as to the pattern of the recovery, but he doesn't specifically mention the timing.

Who gives a fluck what he said hamish! It's about as real as the BS you spill on here. He is clueless and will go to his grave a fairly rich individual - we will be left to pick up the bill!

NO doubt in my mind that the UK is now in terminal meltdown - no industry no global demand for what little we do, little or no resources left and about a £50 billion a year Gas bill to pay come 2012 doubling every year - thats if anyone wants our worthless currency? If not - rolling power cuts - food shortages - petrol shortages and general mayhem.

Then peak oil, and a world of shit!

Yep Hamish Mc Muppet, the green shots are growing out your A HOle mate

You have not got a cluedo!

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Hello Hamish. Mr King also said:

http://www.guardian.co.uk/business/2009/ju...es-with-darling

"if the economy recovers" ??

Very interesting use of words there.

very, very telling that choice of word imo. :ph34r:

I watched him, he is very intelligent & knows finance & economics inside out (I think), but I still think he is a tw4t. The reason is he is playing the same game they are ALL playing, he's just making sure he isn't the fall guy.

Edited by grumpy-old-man-returns

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It's entirely reasonable to be uncertain as to the pattern of the recovery, but he doesn't specifically mention the timing.

And wasn't it us bears that got stick for not getting the timing of the downturn right to the day of the week? Comments about stopped clocks etc.

So Merv isn't at all certain about the pattern of the recovery and he's a wee bit vague about the timing as well.

And how much does he get paid to come out with this stuff?

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I think the economy is changing around now. Hours and wages are falling yet nothing improves.

905873565361.gif

You should post that up in the pinned charts thread.

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And wasn't it us bears that got stick for not getting the timing of the downturn right to the day of the week? Comments about stopped clocks etc.

So Merv isn't at all certain about the pattern of the recovery and he's a wee bit vague about the timing as well.

And how much does he get paid to come out with this stuff?

250k a year or thereabouts.

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The reason is he is playing the same game they are ALL playing, he's just making sure he isn't the fall guy.

Nah, don't agree. Merv is only allowed to play two games - 'Whack-a-Mole' and 'Ultimate Mole Charming' - both of which are very different from Gordon's game ('Give Labour Your X-Factor') and that of the nationalised banks ('Escape from Gordon's Gulag').

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Am I the only one who thinks Mr King might have been more use saying something five years ago. He seems really good at describing the elephant - I thought his job was to stop it getting into the room in the first place.

There are several intelligent posters on this forum who do not have a lot of time for Mervyn. For that reason alone I feel very awkward saying that I actually have a lot of respect for him (still).

-SNIP- Edit to remove long boring section.. I was in broken record mode :rolleyes:

Just look at the picture in that article.. the guy looks like he's aged 10 years in the space of 2. He is holding a lot of weight on his shoulders, and personally I wouldn't trust anyone else to do the job right now. I hope he stays on till we're through this, and I also hope his pension is bigger than Fred's.. Merv actually deserves it.

Edit to add:

On regulation, Mr King said the Bank's powers should be increased to match its responsibilities, saying all it could do right now is make speeches and reports.

I agree.

Edited by libspero

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Guest spp
Mr King and fellow Bank policymakers agreed the worst of the falls were over and said the weak pound was helping bring Britain out of recession.

You are Gordan the gophers mistress and I claim my oz of silver!

:lol:

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http://www.telegraph.co.uk/finance/economi...ion-please.html

The gap between what the Government expects to spend and what it actually brings in has risen five-fold, from £120 billion to £608 billion in the space of six months.

And then there's the sustainable govt spending, good job this isn't unsustainable.

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Guest sillybear2
There are several intelligent posters on this forum who do not have a lot of time for Mervyn. For that reason alone I feel very awkward saying that I actually have a lot of respect for him (still).

I have a lot of respect for what he says, the problem is he then goes and does the exact opposite in practice, like any other politician. For instance, he's criticizing Labour's inability to control its spending in the wake of a collapsing tax base and unavoidable expenditure on welfare for the jobless and interest payments on a massive debt pile, yet nearly every day of the week he's out there in the markets buying fresh government debt with counterfeit money.

Actions speak louder than words. Basically he should act according to his words, or resign.

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